TexCom Announces Debt Refinancing
HOUSTON, TX--(Marketwire - Dec 4, 2012) - TexCom, Inc. (PINKSHEETS: TEXC) (the "Company" or "TexCom"), an environmental services company serving the oil and gas industry, today announced that it has entered into two loan agreements with Green Bank of Houston, Texas, the first being a $7.4 Million Term Loan and the second, a $2 Million Revolving Line of Credit facility. With these new loans in place, TexCom, Inc. will retire all existing loans to the Company as well as its subsidiaries, M.B. Environmental Services, LLC and Eagle Ford Environmental Services, LLC.
"The refinancing of our debt represents a significant achievement for TexCom, Inc.," announced Bob May, CEO and President. "Our average cost of funds has been reduced by more than 10 percentage points which will reduce our interest expense by nearly $600,000 per year. We have also been able to extend debt maturities to better match our long lived assets. Further, we have secured the necessary financing to drill and equip a second disposal well at our disposal site in Atascosa County, Texas operated by Eagle Ford Environmental Services, LLC. We expect to drill this well in the first quarter of 2013. Fourth quarter results will be impaired by the expensing of approximately $465,000 of unamortized loan costs and prepayment penalties. Approximately $600,000 of costs associated with the new loans will be amortized over the life of the loans. With our financing secure, we can now focus on operational efficiencies and other strategic initiatives."
WoodRock & Co., a Houston-based investment banking firm, acted as a financial advisor to TexCom, Inc. on these transactions.
About TexCom, Inc.
TexCom, headquartered in Houston, Texas, is a growth-oriented environmental services company with a primary focus on the disposal of nonhazardous wastes generated by the oil & gas industry. For more information, please visit www.texcomresources.com.
Forward-Looking Statements
This press release and the presentation referenced above may contain forward-looking statements, including information about management's view of TexCom, Inc.'s future expectations, plans and prospects. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release or such presentation other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of TexCom, Inc., its divisions and concepts to be materially different than those expressed or implied in such statements. Unknown or unpredictable factors also could have material adverse effects on TexCom's future results. The forward-looking statements included in this press release and the presentation are made only as of the date hereof. TexCom cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, TexCom undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by TexCom.
