Broadwind Energy Announces Expansion of Credit Facility and $8M of new Tower orders
February 25 2019 - 6:00PM
Broadwind Energy, Inc. (NASDAQ: BWEN) today announced an increase
in its credit line with CIBC Bank, USA to $35 million, and the
extension of the term for 3 years. Under the terms of the new
credit agreement, Broadwind will have the ability to borrow up to
$35 million against a borrowing base consisting of (a) 85% of the
face value of eligible receivables of the Company, plus (b) 50% of
the lower of cost or market value of eligible inventory of the
Company, not to exceed $12.5 million, plus (c) the sum of (i) 75%
of the appraised net orderly liquidation value of the Company’s
eligible machinery and equipment plus (ii) 50% of the fair market
value of the Company’s mortgaged property, not to exceed $12
million.
The Company separately announced it has received $8M of new wind
tower orders, which will be produced in Manitowoc, WI in 2019.
Broadwind CEO Stephanie Kushner stated, “We are pleased to
expand our relationship with CIBC. The increase in our credit line
will provide additional flexibility to support near term strength
in the US wind market, and continued expansion of the products we
produce in each business. Recent wind tower orders include an
initial qualification order from a new entrant in the US Wind
market. Our focus continues to be on diversification and this order
represents a key milestone for us.”
About Broadwind Energy, Inc.Broadwind Energy,
Inc. (NASDAQ: BWEN) is a precision manufacturer of structures,
equipment and components for clean tech and other specialized
applications. From gears and gearing systems for wind, oil and gas
and mining applications, to wind towers and industrial weldments,
we have solutions for the clean tech, energy and infrastructure
needs of the future. With facilities throughout the U.S., Broadwind
Energy's talented team is committed to helping customers maximize
performance of their investments—quicker, easier and smarter. Find
out more at www.bwen.com
Forward-Looking Statements
This release contains “forward-looking statements”—that is,
statements related to future, not past, events—as defined in
Section 21E of the Securities Exchange Act of 1934, as
amended, that reflect our current expectations regarding our future
growth, results of operations, financial condition, cash flows,
performance, business prospects and opportunities, as well as
assumptions made by, and information currently available to, our
management. Forward-looking statements include any statement that
does not directly relate to a current or historical fact. We have
tried to identify forward-looking statements by using words such as
“anticipate,” “believe,” “expect,” “intend,” “will,” “should,”
“may,” “plan” and similar expressions, but these words are not the
exclusive means of identifying forward-looking statements. Our
forward-looking statements may include or relate to our beliefs,
expectations, plans and/or assumptions with respect to the
following: (i) state, local and federal regulatory frameworks
affecting the industries in which we compete, including the wind
energy industry, and the related extension, continuation or renewal
of federal tax incentives and grants and state renewable portfolio
standards; (ii) our customer relationships and efforts to diversify
our customer base and sector focus and leverage customer
relationships across business units; (iii) our ability to
continue to grow our business organically and through acquisitions;
(iv) the production, sale, collections, customer deposits and
revenues generated by new customer orders and our ability to
realize the resulting cash flows; (v) the sufficiency of our
liquidity and our plans to evaluate alternate sources of funding if
necessary; (vi) our ability to realize revenue from customer
orders and backlog; (vii) our ability to operate our business
efficiently, comply with debt obligations, manage capital
expenditures and costs effectively, and generate cash flow;
(viii) the economy and the potential impact it may have on our
business, including our customers; (ix) the state of the wind
energy market and other energy and industrial markets generally and
the impact of competition and economic volatility in those markets;
(x) the effects of market disruptions and regular market
volatility, including fluctuations in the price of oil, gas and
other commodities; (xi) the effects of the change of
administrations in the U.S. federal government; (xii) our ability
to successfully integrate and operate companies and to identify,
negotiate and execute future acquisitions; (xiii) the potential
loss of tax benefits if we experience an “ownership change” under
Section 382 of the Internal Revenue Code of 1986, as amended;
(xiv) the limited trading market for our securities and the
volatility of market price of our securities; and (xv) the impact
of future sales of our common stock or securities convertible into
our common stock on our stock price. These statements are based on
information currently available to us and are subject to various
risks, uncertainties and other factors that could cause our actual
growth, results of operations, financial condition, cash flows,
performance, business prospects and opportunities to differ
materially from those expressed in, or implied by, these
statements. We are under no duty to update any of these
forward-looking statements after the date of this release to
conform such statements to actual results. You should not consider
any list of such factors to be an exhaustive statement of all of
the risks, uncertainties or potentially inaccurate assumptions that
could cause our current beliefs, expectations, plans and/or
assumptions to change.
BWEN INVESTOR CONTACT: Jason Bonfigt,
708.780.4821 jason.bonfigt@bwen.com
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