The commitment will be a $20 million first lien secured term loan facility that Xinergy can draw in two $10 million tranches.

Each tranche bears a 9.875% per annum interest rate and has a four-year term.

In return for the funds Xinergy is giving the lenders 500,000 common share purchase warrants with a five-year term and a strike price of $C1.20 a share.

Upon closing the first $10 million term loan the company will issue the lenders another 450,000 common share purchase warrants with a five-year term and a $1.40 a share strike price.

On closing the second $10 million term loan Xinergy will issue the lenders another 350,000 common share purchase warrants with a five-year term and a $1.60 a share strike price.

The Bayside financing commitment expires on December 31 and provides for the issuance of the second $10 million tranche up to a year after the issue of the first $10 million tranche.

Xinergy chief executive officer Matt Goldfarb said he expected the funding arrangement would give the company significantly increased flexibility and “lower effective carry costs relative to our prior committed senior secured financing”

Moelis & Company acted as capital markets advisor to Xinergy in connection with the financing.

Closing of the financing arrangement is subject to customer closing conditions. Issuing of the warrants is subject to Toronto Stock Exchange approval.