secwatch / observer
8-K filed March 4, 2025, 6:59 PM ET CIK 0000707388
M&A confidence high sentiment positive materiality 0.80

STAR EQUITY HOLDINGS, INC.: M&A transaction — Star Equity acquires Alliance Drilling Tools for $12.65M enterprise value; establishes Energy Services division

STAR EQUITY HOLDINGS, INC.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

STAR EQUITY HOLDINGS, INC. incurred credit facility of up to $3,000,000 with Austin Financial Services, Inc. at prime rate plus 1.75% maturing March 4, 2028.

Instrument
credit facility
Principal
up to $3,000,000
Counterparty
Austin Financial Services, Inc.
Rate
prime rate plus 1.75%
Maturity
March 4, 2028
Event
incurrence
Exact text from the filing
On March 3, 2025, Alliance Drilling Tools, LLC (the “Borrower”) entered into a Loan and Security Agreement (the “Austin Loan Agreement”) with Austin Financial Services, Inc. (“Austin”) providing the Borrower with a working capital line of credit of up to $3,000,000, subject to the conditions and procedures set forth in the Austin Loan Agreement. Availability under the Austin Loan Agreement is based on a formula tied to the Borrower’s eligible accounts receivable, inventory and equipment, and borrowings bear interest at the prime rate plus 1.75%, with interest payable monthly and the outstanding principal balance payable March 4, 2028 (the “Maturity Date”).
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M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.9

STAR EQUITY HOLDINGS, INC. completed an acquisition involving Alliance Drilling Tools, LLC for up to $4,900,000 in cash and 775,000 shares of Series A Preferred Stock (closed 2025-03-03).

Action
acquisition
Counterparty
Alliance Drilling Tools, LLC
Consideration
up to $4,900,000 in cash and 775,000 shares of Series A Preferred Stock
Closing
2025-03-03
Exact text from the filing
Company shall become a wholly owned subsidiary of the Company. In connection with the closing of the transaction, the Company will pay the Sellers aggregate consideration of (i) $4,900,000 (the “Cash Consideration”) and (ii) issue 775,000.00 shares (the “Stock Consideration”) of the Company’s 10% Series A Cumulative Perpetual Preferred Stock, par value $0.0001 per
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Source: SEC EDGAR
accession 0000707388-25-000023
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