FuelCell Energy Inc. Announces New $200 Million Strategic Corporate Loan Facility with Orion Energy Partners
November 06 2019 - 8:30AM
Today, FuelCell Energy, Inc. (Nasdaq: FCEL), a leading clean energy
company, announced a new, 8-year $200 million strategic corporate
loan facility with Orion Energy Partners. The Company is
planning to leverage the initial October/November 2019 draws
totaling $80 million to primarily support execution of certain
projects within the Company’s $2 billion project backlog. The
balance of the Facility, or $120 million, will be available over
the first 18 months to invest in strategic growth, providing
working capital as needed.
Specifically, $80 million of the
Facility will be deployed toward:
- Current construction and engineering costs associated with
inflight projects, specifically Tulare BioMAT, Bolthouse Farms and
the CMEEC U.S. Navy Base fuel cell plant
- Future growth, including commencing the construction of the
first of three FuelCell projects with LIPA
- Increasing FuelCell Energy’s unrestricted cash balance through
the monetization of the Company’s project portfolio and repayment
of all short-term outstanding construction loan
facilities
- Funding outstanding dividends for Series B Preferred
shareholders
“We are pleased to close the new Facility with
Orion Energy Partners. This successful transaction
underscores the confidence Orion Energy Partners has in FuelCell
based on its deep understanding of our business and our strategy,
as well as the importance of the role our proprietary fuel cell
technology plays in delivering a clean energy future,” noted Jason
Few, President and Chief Executive Officer of FuelCell
Energy. “With this partnership, we have strengthened our
balance sheet and have the funding we need to complete construction
of several projects in process, continue to execute on our $2
billion backlog and project awards while driving new sales growth,
all of which will generate strong cash flow.”
“We are pleased to announce this new partnership
with FuelCell Energy, and look forward to supporting their
continued growth as a world leader for reliable, low carbon,
base-load distributed power generation,” said Gerrit Nicholas,
Co-Founder and Managing Partner of Orion Energy Partners. “This
investment is a perfect example of Orion Energy’s focus on
providing our partners with flexible, creative capital solutions,
while meeting our commitments to environmentally sustainable energy
businesses and practices.”
The second tranche and remaining $120 million in
financing is subject to the conditions contained in the
agreement.
In connection with the Facility, the Company has
granted Orion Energy Partners warrants to purchase up to 20 million
shares of the Company’s common stock. 8 million shares of these
shares are valued at the October 30th, 2019 closing price, while
the balance, or 12 million shares are valued at a premium to the
October 30th closing price.
Cautionary Language This
news release contains forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995, including, without limitation, statements with
respect to the Company’s anticipated financial results, statements
regarding the Company’s plans and expectations regarding the
continuing development, commercialization and financing of its fuel
cell technology, and statements regarding the Company’s strategic
focuses and business plans. All forward-looking statements are
subject to risks and uncertainties that could cause actual results
to differ materially from those projected. Factors that could cause
such a difference include, without limitation, changes to projected
deliveries and order flow, changes to production rate and product
costs, general risks associated with product development,
manufacturing, changes in the regulatory environment, customer
strategies, unanticipated manufacturing issues that impact power
plant performance, changes in critical accounting policies,
potential volatility of energy prices, rapid technological change,
competition, and the Company’s ability to achieve its sales plans,
business and strategic plans, refinancing and restructuring plans,
and cost reduction targets, as well as other risks set forth in the
Company’s filings with the Securities and Exchange Commission. The
forward-looking statements contained herein speak only as of the
date of this press release. The Company expressly disclaims any
obligation or undertaking to release publicly any updates or
revisions to any such statement to reflect any change in the
Company’s expectations or any change in events, conditions or
circumstances on which any such statement is based.
About FuelCell EnergyFuelCell
Energy, Inc. (NASDAQ: FCEL) delivers efficient, affordable and
clean solutions for the supply, recovery and storage of
energy. We design, manufacture, undertake project development
of, install, operate and maintain megawatt-scale fuel cell systems,
serving utilities and industrial and large municipal power users
with solutions that include both utility-scale and on-site power
generation, carbon capture, local hydrogen production for
transportation and industry, and long duration energy
storage. With SureSource™ installations on three continents
and millions of megawatt hours of ultra-clean power produced,
FuelCell Energy is a global leader in designing, manufacturing,
installing, operating and maintaining environmentally
responsible fuel cell power solutions. Visit us online at
www.fuelcellenergy.com and follow us on Twitter @FuelCell_Energy.
About Orion Energy
PartnersOrion Energy Partners is a credit-oriented private
equity firm with over $1 billion of investable capital. Orion
Energy is focused on providing creative capital solutions to
middle-market energy infrastructure businesses across North America
and select international markets with a focus on downstream,
midstream, conventional electric power, renewable energy and
storage, asset-heavy energy services and other energy subsectors.
Its management has substantial experience leading successful energy
companies and energy infrastructure investments. The firm was
founded in 2015 and has offices in New York and Houston. For more
information on Orion Energy Partners, please visit
www.OrionEnergyPartners.com.
SureSource, SureSource 1500, SureSource 3000,
SureSource 4000, SureSource Recovery, SureSource Capture,
SureSource Hydrogen, SureSource Storage, SureSource Service,
SureSource Capital, FuelCell Energy, and FuelCell Energy logo are
all trademarks of FuelCell Energy, Inc.
Contact:FuelCell Energy203.205.2491ir@fce.com
Source: FuelCell Energy
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