Entrust Completes Financing

Entrust Financial Services Inc., Denver, has reported the completion of a $2 million financing to increase its mortgage banking lending capacity.Entrust Financial, the parent company of wholesaler Entrust Mortgage Inc., said it borrowed the $2 million on Dec. 31 from BBSB LLC, a private Colorado-based company with which it had no prior affiliation. Entrust Financial executed a 27-month convertible promissory note under which only interest (at a 12% annual rate, payable monthly) is payable until maturity. The company said bonus interest of 33% is payable upon the maturity or the prepayment of the note, but that BBSB has the option at that time to forgo the bonus interest and convert the $2 million principal amount into common shares of Entrust at a conversion price of $3 per share, subject to certain conditions.