Recent Strategic Transactions Position FuelCell for Future Success; Company to Resume Hosting Earnings Calls and Will Provide...
November 11 2019 - 8:00AM
Today, FuelCell Energy, Inc. (Nasdaq: FCEL), a global leader in
delivering clean, innovative and affordable fuel cell solutions,
announced it has completed the
restructuring phase
of the Company’s transformation:
- November 5, 2019:
Announced the conclusion of the engagement with Huron Consulting.
Since June 2, 2019, Huron provided various services related to the
Company's restructuring and contingency planning initiatives. The
Board's decision was based on the outcome of many actions
undertaken by Huron at the direction of the Board that led to the
Company's successful restructuring, including the rightsizing of
the business, implementation of cost control measures, and the
repayment of substantial corporate debt.
- November 6, 2019:
Announced a new, 8-year $200 million strategic corporate loan
facility with Orion Energy Partners. The facility is an integral
part of the go-forward capital structure and operating strategy of
the Company and will serve to support capital costs associated with
completing inflight projects. 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 additional project deployments, strategic growth
initiatives and provide working capital as needed.
- November 6, 2019:
Announced an expanded, two-year joint-development agreement with
ExxonMobil to further enhance carbon capture technology. The
agreement, valued at up to $60 million, will focus efforts on
optimizing and enhancing the core carbonate fuel cell technology,
accelerate overall process integration, and drive towards
large-scale deployment of carbon capture solutions.
During the period of restructuring, the Company
executed a series of initiatives aimed at enhancing its financial
and operational position. These significant efforts will enable the
Company to deliver on current project commitments at a meaningfully
lower cost and successfully scale to meet future growth needs.
“The last several months have been a defining
time for FuelCell. While challenging, our organization pulled
together and executed the restructuring phase of our strategy that
will set us up to execute the next leg of our transformation. With
the commitment and strategic investments from Orion Capital
Partners and ExxonMobil, FuelCell’s opportunity is to accelerate
our momentum now and build on our 50 year history leading the
advancement of fuel cell technology,” noted Jason Few, President
and Chief Executive Officer of FuelCell Energy. “While we still
have work to do, I’m proud of the collective efforts of all
FuelCell Energy team members. They never lost sight of the needs of
our global client base and partners during this time. We have laid
the foundation for profitable growth and are now on a path to
restore this great Company to a position of industry leadership
across all metrics. Our leadership team looks forward to unveiling
our go-forward strategy in early 2020.”
The Company will host a conference call on
Tuesday, January 14, 2020, at 10:00 am EST to review its financial
performance. In addition, senior leadership will unveil the
pillars of its transformation strategy under the direction of its
newly appointed President and CEO, Jason Few. Conference call
details will be provided at a later date.
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.
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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