Prospect Global Completes Senior Debt Restructuring
DENVER, April 16, 2013
DENVER, April 16, 2013 /PRNewswire/ -- Prospect Global Resources, Inc.
(NASDAQ: PGRX) announced today the successful restructuring of its long-term
debt with the Karlsson Group ("KG"), advancing its long-term plan to build a
potash mine in the Holbrook Basin of Arizona.
Key highlights include:
oDebt maturity extended to July 2015; interim principal payment of $30
million due January 2015
oInterim payments to KG decreased to 10% of any capital raised after $10
million of capital raised (previously 40% of any capital raised)
oRestructured $6.75 million Unsecured Notes from 3^rd party to extend
maturity dates, and reduced interim capital payments to 10% of any capital
raised after $10 million of capital raised (previously 33% of any capital
oThe Company is required to meet interim financing milestones to fund the
continued development of the Holbrook Basin project
"We are very pleased with the outcome of our restructuring efforts," said
Damon Barber, Prospect Global's President and Chief Executive Officer. "The
restructuring of our debt marks a significant step forward for the company.
Despite the recent volatility in our stock price, we believe that we are now
well positioned to move forward in building long-term value for all
About Prospect Global Resources Inc. [PGRX]:
Regarding Forward-Looking Statements
With the exception of historical matters, the matters discussed in this press
release include forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from
projections or estimates contained herein. Such forward-looking statements
include statements regarding current and future classification of our potash
resources and development of our potash mining facility. Factors that could
cause actual results to differ materially from projections or estimates
include, among others, potash prices, economic and market conditions, and the
additional risks described in Prospect Global's filings with the SEC,
including Prospect Global's Annual Report on Form 10-K for the year ended
March 31, 2012. Most of these factors are beyond Prospect Global's ability to
predict or control. The forward looking statements are made as of the date
hereof and, except as required under applicable securities legislation,
Prospect Global does not assume any obligation to update any forward-looking
statements. Readers are cautioned not to put undue reliance on forward-looking
About Prospect Global Resources, Inc.
Prospect Global Resources, Inc. is a Denver-based company engaged in the
exploration and development of a large, high-quality potash deposit located in
the Holbrook Basin of eastern Arizona. The company's stock is traded on the
NASDAQ Stock Exchange under the ticker symbol PGRX.
Additional details about Prospect Global Resources Inc. can be viewed at the
Company's website, www.prospectgri.com.
SOURCE Prospect Global Resources, Inc.
Contact: Mr. Gregory Dangler, CFO, +1 (303) 990-8444
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