Spark Energy Inc. has entered into a $25 million subordinated debt facility with Retailco LLC to help fund its growth initiatives, according to a Dec. 27 company release.
The company plans to draw down $5.0 million from the facility before the Dec. 31. The debt will bear a fixed annual interest rate of 5% and will have a tenor of three-and-one-half years.
"With this sponsor supported debt facility, the company has increased flexibility to quickly and efficiently address various strategic initiatives utilizing a low cost of capital," said Nathan Kroeker, Spark Energy president and CEO.
Keith Maxwell-owned Retailco is the majority shareholder of Spark Energy.