Cobra Acquisitions LLC, a wholly owned subsidiary of Mammoth Energy Services, Inc., announced on October 21, 2024, the receipt of an additional $18.4 million from the Puerto Rico Electric Power Authority (PREPA). This payment is in accordance with the previously announced Settlement Agreement. With this installment, Cobra has now received a total of $168.4 million out of the $188.4 million total settlement proceeds.
The remaining $20 million of the settlement is contingent upon the confirmation of PREPA's plan of adjustment in their bankruptcy proceedings. In connection with this receipt, Mammoth entered into an amendment to its revolving credit agreement and a letter of credit reimbursement agreement with Fifth Third Bank. Cobra instructed Fifth Third Bank to issue an $18.4 million letter of credit to PREPA, collateralized by $19.3 million transferred to a restricted cash account.
CEO Arty Straehla expressed satisfaction with receiving this installment, highlighting the company's significant cash position and debt-free balance sheet. Mammoth plans to continue its meticulous and strategic approach to deploying capital, pursuing accretive, value-enhancing opportunities to strengthen the company.
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