Capstone and Sky Solar Announce Strategic Financing Agreement to Fund up to $50 Million in Select Capstone Energy Finance Pro...
October 06 2016 - 8:30AM
Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST), the world's leading clean technology manufacturer of
microturbine energy systems, announced today that it has entered
into a strategic financing relationship agreement with Sky Solar
Holdings, Ltd. (”Sky Solar”) (www.skysolargroup.com) (Nasdaq:SKYS)
and Sky Capital America, Inc., a Sky Solar subsidiary (together,
“Sky Group”) to provide funding to Capstone Turbine’s Capstone
Energy Finance (“CEF”) joint venture.
Pursuant to the strategic financing agreement,
Capstone and CEF granted a right of first refusal (“ROFR”) to Sky
Group to provide funding of up to $50 million, which may be
extended by an additional $100 million (the “Project Fund”) at Sky
Group’s sole discretion for various CEF projects on a global basis
after Capstone and CEF have exhausted their internal funding
sources of up to $25 million. The ROFR also includes an option for
Sky Group to jointly fund power purchase agreement (“PPA”) backed
opportunities with Capstone, CEF, end use customers, and/or any
authorized Capstone distributors under certain mutually agreeable
conditions. The agreement will expire at the earlier of the end of
three years following the effective date or upon the exhaustion of
Sky Group’s Project Fund.
“Capstone’s new finance subsidiary has developed a
twenty million dollar pipeline of well-qualified projects since its
launch last December, and we expect to quickly surpass our ability
to fund projects with our internal resources,” said Darren Jamison,
Capstone's President and Chief Executive Officer. “We have looked
at several potential partners and, after months of due diligence
and discussions with several companies, we have selected Sky Solar
because we believe they have the right skill set, ability,
experience and global reach to help us successfully grow our
Capstone Energy Finance business over the next three years,” added
Mr. Jamison.
“As we have highlighted in the past, we remain
focused on expanding our power market portfolio by selectively
pursuing non-solar renewable asset classes that can generate
returns higher than typical solar projects, and we expect this new
strategic partnership with Capstone will provide an attractive
avenue for additional growth,” said Sanjay Shrestha, Sky Solar
Chief Investment Officer and President of Sky Capital America.
About Sky Solar
Sky Solar is a global independent power producer
(“IPP”) that develops, owns and operates solar parks around the
world with broad geographic reach and an established presence
across several key solar markets. Sky Solar has developed and
completed more than 250 MW of solar parks in various countries and
has over 150 MW of IPP assets in operation globally.
This press release contains forward-looking
statements. These statements constitute “forward-looking”
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, and as defined in the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as “will,” “expects,”
“anticipates,” “future,” “intends,” “plans,” “believes,”
“estimates” and similar statements. Such statements involve certain
risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. These
risks and uncertainties include, but are not limited to the
following: the reduction, modification or elimination of government
subsidies and economic incentives; global and local risks related
to economic, regulatory, social and political uncertainties;
resources Sky Solar may need to familiarize itself with the
regulatory regimes, business practices, governmental requirements
and industry conditions as Sky Solar enter into new markets; Sky
Solar’s ability to successfully implement its on-going strategic
review to unlock shareholder value; global liquidity and the
availability of additional funding options; the delay between
making significant upfront investments in Sky Solar’s solar parks
and receiving revenue; potential expansion of Sky Solar’s business
into China; risk associated with the Sky Solar's limited operating
history, especially with large-scale IPP solar parks; risk
associated with development or acquisition of additional attractive
IPP solar parks to grow Sky Solar's project portfolio; and
competition. Further information regarding these and other risks is
included in Sky Solar's filings with the U.S. Securities and
Exchange Commission, including its annual report on Form 20-F.
Except as required by law, Sky Solar does not undertake any
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise.
About Capstone Turbine Corporation
Capstone Turbine Corporation
(www.capstoneturbine.com) (Nasdaq:CPST) is the world's leading
producer of low-emission microturbine systems and was the first to
market commercially viable microturbine energy
products. Capstone has shipped approximately 8,800 Capstone
Microturbine systems to customers worldwide. These award-winning
systems have logged millions of documented runtime operating
hours. Capstone is a member of the U.S. Environmental
Protection Agency's Combined Heat and Power Partnership, which
is committed to improving the efficiency of the nation's energy
infrastructure and reducing emissions of pollutants and greenhouse
gases. A UL-Certified ISO 9001:2008 and ISO 14001:2004 certified
company, Capstone is headquartered in the Los Angeles area
with sales and/or service centers in the United States, Latin
America, Europe, Middle East, China and Singapore.
This press release contains "forward-looking
statements," as that term is used in the federal securities laws,
about the growth of our Capstone Energy Finance business and the
success of our relationship with Sky Solar. Forward-looking
statements may be identified by words such as "expects,"
"objective," "intend," "targeted," "plan" and similar phrases.
These forward-looking statements are subject to numerous
assumptions, risks and uncertainties described in Capstone's
filings with the Securities and Exchange Commission that may cause
Capstone's actual results to be materially different from any
future results expressed or implied in such statements. Capstone
cautions readers not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release. Capstone undertakes no obligation, and specifically
disclaims any obligation, to release any revisions to any
forward-looking statements to reflect events or circumstances after
the date of this release or to reflect the occurrence of
unanticipated events.
"Capstone" and "Capstone Microturbine" are
registered trademarks of Capstone Turbine Corporation. All
other trademarks mentioned are the property of their respective
owners.
For Capstone Turbine Corporation:
Investor and investment media inquiries:
818-407-3628
ir@capstoneturbine.com
INVESTORS:
Dian Griesel Int’l
Cheryl Schneider
212-825-3210
For SKYS:
Investor Relations
ICR, LLC
Vera Tang
646-277-1215
ir@skysolarholding.com
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