Capstone Turbine Corporation Executes $12 Million Revolving Credit Facility with Bridge Bank
June 06 2017 - 08:30AM
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 two Credit and Security Agreements (the “Credit Agreements”)
with Bridge Bank, a division of Western Alliance Bank. Under the
terms of the Credit Agreements, Capstone may borrow up to $12
million on a revolving basis.
“We are looking forward to our new banking relationship with
Bridge Bank. Not only will this new credit facility provide us with
an increase in borrowing availability compared to our old facility,
but the overall total cost of capital of the facility will also be
reduced,” said Jayme Brooks, Capstone’s Chief Financial Officer and
Chief Accounting Officer. “We feel the service provided by Bridge
Bank is a better fit for Capstone’s needs at this time as we
continue to reduce our operating costs,” added Ms. Brooks.
The Credit Agreements with Western Alliance Bank are supported
by the Export-Import Bank of the United States. Under the terms of
the Credit Agreements, Capstone may borrow up to $12 million on a
revolving basis depending on the amount of our eligible inventory
and accounts receivable. The Credit Agreements are for a two-year
period ending June 2, 2019.
“The move to Bridge Bank is yet another example of Capstone’s
continued war on costs as our operating expenses are down
dramatically from last year and are lower than other similar sized
companies in our clean tech space,” said Darren Jamison, Capstone’s
President and Chief Executive Officer of Capstone. “Over the past
year, we have transitioned to several more cost competitive service
providers, while maintaining or, in many cases, improving overall
service levels. We have switched our external auditors, tax and
payroll service providers, SEC counsel and now our banking
relationship, to name just a few,” added Mr. Jamison.
“We are pleased to have Capstone Turbine as a new client of
Bridge Bank and appreciate the opportunity to work with such an
industry leader. We look forward to a long and mutually
prosperous relationship supporting the Company’s financing, banking
and treasury needs with flexibility and responsiveness as they
continue toward achieving their various goals,” added Justin
Vogel, Bridge Bank’s Business Line Manager in Southern
California.
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 9,000 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
9001:2015 and ISO 14001:2015 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 and Asia.
About Bridge Bank
Bridge Bank is a division of Western Alliance Bank, Member FDIC,
the go-to bank for business in its growing markets. Bridge Bank was
founded in 2001 in Silicon Valley to offer a better way to bank for
small-market and middle-market businesses across many industries,
as well as emerging technology companies and the private equity
community. Geared to serving both venture-backed and
non-venture-backed companies, Bridge Bank offers a broad scope of
financial solutions including growth capital, equipment and working
capital credit facilities, sustainable energy project finance,
venture debt, treasury management, asset-based lending, SBA and
commercial real estate loans, ESOP finance and a full line of
international products and services. Based in San Jose, Bridge Bank
has eight offices in major markets across the country along with
Western Alliance Bank’s robust national platform of specialized
financial services. Western Alliance Bank is the primary subsidiary
of Phoenix-based Western Alliance Bancorporation. One of the
country’s top-performing banking companies, Western Alliance ranks
#4 on the Forbes 2017 “Best Banks in America” list. For more
information, visit bridgebank.com.
This press release contains "forward-looking statements," as
that term is used in the federal securities laws, about Capstone’s
borrowing availability and cost of capital as well as Capstone’s
continuing efforts in relation to reduction in costs and operating
expenses. 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.
CONTACT: Capstone Turbine Corporation
Investor and investment media inquiries:
818-407-3628
ir@capstoneturbine.com
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