Fossils May Think Twice Before Accepting Bailout – The Energy Mix
“The loans, at a minimum of $60 million, carry an interest rate of 5% in the first year, 8% in the second, and increase by 2% each year after,” Jones writes. “As part of the deal, the government would get warrants that it can convert to common shares equal to 15% of the loan value, or, in the case of private companies, the cash equivalent. Also in the fine print, 20% of the debt will be secured, and the government corporation in charge of the program will have the right to appoint observers on boards of directors.”