UBRG News
Universal Bioenergy in Negotiations for Multi-Million Dollar Funding Line With Major Commercial Bank
2012-08-30 06:00 ET - News Release
IRVINE, Calif., Aug. 30, 2012 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc., (OTCMarkets:UBRG), a publicly traded independent diversified energy company, that markets natural gas, propane, and produces petroleum and coal, announced today that it is in negotiations with a major commercial bank that provides capital funding to companies in the transportation and energy industry. The bank has proposed to provide Universal with an aggregate of up to $180 million dollar annual revolving capital funding line for its future growth and expansion. The agreement, if completed will provide Universal and NDR Energy with additional working capital and accounts receivable financing for a period of 2 years. The funding line would have provisions for increasing the limit as the Company revenues and profits grow.
The commercial bank is a market leader in providing working capital and accounts receivable financing to companies in the transportation and energy industry.
Universal's Vice President Solomon Ali states, "We have been in discussions with this bank for several months, and now that we have 2 to 3 years of solid growth and financials, many banks and other financial institutions are taking a closer look at us as a viable candidate for major financing. We have weathered the worst recession in U.S. history, and we're still standing and growing. Banks and other commercial lenders are very impressed by that fact, and our future growth prospects. If we are successful in closing the funding transaction, it will allow us purchase more natural gas in greater quantities, at better prices, for gas storage and sales to our 30 electric utility customers. This could also significantly increase our sales revenues and profit margins. This is more good news for our shareholders, as we move the Company toward profitability."
