Ram Power renegotiates terms of loan
Lenders to Reno-based Ram Power Corp. will be keeping a close eye on the geothermal developer’s executive suite.
The company said last week it renegotiated a $50 million term loan from Sprott Resource Lending Partnership, Exploration Capital Partners 2008 Limited Partnership and Newberry International Holdings Ltd.
Ram had been out of compliance with the terms of the loan, which it used to finance geothermal development in Nicaragua and California.
Under the new agreement, the lenders have the right to approve a successor if Anthony Mitchell, Ram’s executive chairman, leaves the company.
The lenders also can demand accelerated repayment if Hezy Ram, the company’s former chief executive officer, returns to the company as an employee, consultant or board member. He resigned in February after the company said its San Jacinto project in Nicaragua was behind schedule and over budget.
He was succeeded by Walt Higgins, former chairman and CEO of NV Energy.
Ram Power, whose stock trades on the Toronto Stock Exchange, raised $70.6 million of fresh capital last month through the sale of stock and warrants.
The new deal with the lenders allows Ram Power to fund more drilling and construction at the San Jacinto project.
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