IRVINE, Calif., Aug. 30, 2012 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc., (OTCMarkets:UBRG), a publicly traded independent diversified energy company, that markets natural gas, propane, and produces petroleum and coal, announced today that it is in negotiations with a major commercial bank that provides capital funding to companies in the transportation and energy industry. The bank has proposed to provide Universal with an aggregate of up to $180 million dollar annual revolving capital funding line for its future growth and expansion. The agreement, if completed will provide Universal and NDR Energy with additional working capital and accounts receivable financing for a period of 2 years. The funding line would have provisions for increasing the limit as the Company revenues and profits grow.
The commercial bank is a market leader in providing working capital and accounts receivable financing to companies in the transportation and energy industry.
Universal's Vice President Solomon Ali states, "We have been in discussions with this bank for several months, and now that we have 2 to 3 years of solid growth and financials, many banks and other financial institutions are taking a closer look at us as a viable candidate for major financing. We have weathered the worst recession in U.S. history, and we're still standing and growing. Banks and other commercial lenders are very impressed by that fact, and our future growth prospects. If we are successful in closing the funding transaction, it will allow us purchase more natural gas in greater quantities, at better prices, for gas storage and sales to our 30 electric utility customers. This could also significantly increase our sales revenues and profit margins. This is more good news for our shareholders, as we move the Company toward profitability."
About Universal Bioenergy
Founded in 2004, Universal Bioenergy Inc., is a publicly traded independent diversified energy company that produces and markets natural gas, petroleum, coal and propane. We market energy resources to the largest public utilities, electric power producers and local gas distribution companies in the U.S., that serve millions of commercial, industrial and residential customers. We are also engaged in the acquisition and development of existing or recently discovered oil and gas fields, leases and surface coal mines. For more information visit www.universalbioenergy.com
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Safe Harbor Statement - There are matters discussed in this media information that are forward looking statements within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. Such statements are only forecasts and actual events or results may differ materially from those discussed. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to Universal Bioenergy Inc.'s most recent annual report and accounts and other SEC filings. The company undertakes no obligation to update publicly, or revise, forward looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.