WALTHAM, Mass., Oct. 4, 2016 /PRNewswire/ -- American DG Energy Inc. (NYSE MKT: ADGE, the "Company"), an On-Site Utility provider offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and fitness facilities, is pleased to announce the completion of the previously announced debt swap (detailed in a press release from August 10, 2016) and related transactions. The combination of these various transactions resulted in a substantial reduction in convertible debt principal outstanding from $17.7 million at year end 2015 to just $3.4 million - due May 2018.
"Our original guidance was for this series of balance-sheet-improving transactions to take place in the fourth quarter of this year. However, the team here at American DG Energy worked diligently alongside our counterparties and was able to bring the process to completion ahead of schedule – I congratulate and thank them for their efforts," said John Hatsopoulos, the Company's Co-Chief Executive Officer.
To effect the debt reduction, American DG Energy exchanged approximately 9.7 million shares in EuroSite Power Inc. (OTCQX: EUSP) for elimination of a portion of the outstanding 6% convertible debentures due May 2018. A further 5.5 million shares of EuroSite Power were sold for $0.40 per share, with the resulting cash used for pre-payment of an additional portion of convertible debt. As a result of these sales and exchanges, the Company's stake in EuroSite Power was reduced to 2.03% (1,668,060 shares). Along with these transactions, 1.02 million Company warrants with $0.60 strike price expiring October 2017 were also cancelled. The remaining convertible debt has been restructured to carry zero-coupon and retain the original May 2018 maturity.
About American DG Energy
American DG Energy supplies low-cost energy to its customers through distributed power generating systems. We are committed to providing institutional, commercial and small industrial facilities with clean, reliable power, cooling, heat and hot water at lower costs than charged by local utilities - without any capital or start-up costs to the energy user - through our On-Site Utility energy solutions. American DG Energy is headquartered in Waltham, Massachusetts. Learn more about how American DG Energy reduces energy costs at www.americandg.com or follow us on Facebook and Twitter.
This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Important factors could cause actual results to differ materially from those indicated by such forward-looking statements, as disclosed on the Company's website and in Securities and Exchange Commission filings. This press release does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is meant purely for informational purposes. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
SOURCE American DG Energy Inc.