HOUSTON, Dec. 27, 2016 (GLOBE NEWSWIRE) -- Spark Energy, Inc. (NASDAQ:SPKE), a Delaware corporation, announced today that it has entered into a $25.0 million subordinated debt facility with Retailco, LLC. Retailco, LLC is Spark’s majority shareholder and is wholly-owned by Keith Maxwell, the Company’s founder and chairman. A special committee of the Company’s Board of Directors consisting solely of independent directors reviewed and approved the terms of the subordinated debt facility.

“With this sponsor supported debt facility, the Company has increased flexibility to quickly and efficiently address various strategic initiatives utilizing a low cost of capital,” said Nathan Kroeker, Spark Energy’s President and Chief Executive Officer.

The Company plans to use the facility to enhance working capital, for growth initiatives, and for capital optimization, including, subject to lender approval, stock buybacks. The facility will bear a fixed annual interest rate of 5.0% and will have a tenor of three-and-one-half years. The subordinated debt facility is unsecured and is subordinated to the Company’s senior credit facility. The Company intends to draw down $5.0 million under the new facility prior to December 31, 2016.

About Spark Energy, Inc.

Spark Energy, Inc. is an established and growing independent retail energy services company founded in 1999 that provides residential and commercial customers in competitive markets across the United States with an alternative choice for their natural gas and electricity. Headquartered in Houston, Texas, Spark currently operates in 18 states and serves 90 utility territories. Spark offers its customers a variety of product and service choices, including stable and predictable energy costs and green product alternatives.