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Gas Natural Inc. Secures $5M Bridge Financing


Gas Natural Inc. (NYSE MKT: EGAS) (the "Company"), a holding company operating local natural gas utility companies serving approximately 68,000 natural gas customers in six states, announced that it has secured a $5 million bridge loan from NIL Funding Corporation. NIL Funding is an affiliate of The InterTech Group, Inc., which is controlled by Anita Zucker, as trustee for the Article 6 Marital Trust, the Company's largest shareholder. In addition, one of the Company's directors, Michael Bender, is the Corporate Counsel of The InterTech Group. The funds provide short-term bridge financing while the Company is in the process of seeking to refinance its longer term debt. Any refinancing process would be contingent upon customary bank and regulatory approvals, including the regulators for each state in which the Company operates.

Mr. Robert Johnston, Executive Vice President and Chief Strategy Officer for The InterTech Group, commented, "This interim financing solution provides Gas Natural with additional liquidity and flexibility, and will accelerate the Company's transformation. We believe Gas Natural is well positioned to execute its growth strategy, increase its earnings power, and ultimately maximize shareholder value."

Mr. Gregory J. Osborne, Gas Natural's President and Chief Executive Officer, added, "Discussions regarding the refinancing of our long-term debt are progressing well, given strengthened relationships with our regulators. Additionally, we continue to make strides with our operational and foundational improvements, strategically positioning Gas Natural to grow."

The unsecured $5 million loan has a 180-day term with interest at 7.5% per annum. Proceeds were used to repay $2.2 million of intercompany loans between the Company and its subsidiary, Energy West Incorporated, and will also be used for general working capital needs.

Posted-In: News Press Releases


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