Vertex Energy selloff from worse loan terms ‘seems aggressive,’ says Northland

Northland notes that Vertex Energy shares sold off nearly 30% Tuesday after announcing a $50M increase the company’s term loan that resulted in a higher interest rate, 1M warrants issued, and a repricing of 3M warrants already outstanding. While the market “clearly interpreted this as a sign of desperation,” the firm is “not so sure the logic follows” as it could also be part of a bigger “game” being played that includes the ongoing process with Bank of America, the analyst tells investors. The firm, which views the selloff as one that “seems aggressive,” has an Outperform rating and $9.50 price target on Vertex Energy shares.