Clean Energy Announces Up to $400 Million in Financing with Stonepeak to Continue Expansion of Renewable Natural Gas Infrastructure
December 13 2023 - 6:30AM
Business Wire
Clean Energy Fuels Corp. (Nasdaq: CLNE) announced that it has
entered into a six-year $300 million senior secured term loan with
Stonepeak, a leading alternative investment firm specializing in
infrastructure and real assets. The credit agreement also provides
for a two-year delayed draw term loan commitment of an additional
$100 million.
In addition to repaying existing loans, the financing from
Stonepeak will provide Clean Energy with capital for new renewable
natural gas (RNG) production facilities, as well as the expansion
of the company’s fueling infrastructure targeting the heavy-duty
truck market. Clean Energy currently provides RNG to hundreds of
fleets every day in the form of compressed natural gas (CNG) and
liquified natural gas (LNG), which enables them to decarbonize
their large vehicles easily and affordably.
“Stonepeak is one of the most well-respected infrastructure
investment firms operating in the energy transition space and we’re
excited to partner with them as we grow our RNG business,” said
Clay Corbus, senior vice president for strategic development and
head of Renewable Fuels at Clean Energy. “This financing agreement
is very timely as we continue to see more RNG development
opportunities come our way, and as we anticipate building
additional stations to accommodate increased demand due to the
arrival of Cummins 15-liter natural gas engine.”
“We see RNG as a practical and affordable energy solution for
the transportation sector, with tailwinds supporting increasing
adoptability. This, combined with its ability to curb fugitive
methane emissions, makes it a critical part of decarbonization
infrastructure, in our view,” said Michael Bricker, Senior Managing
Director at Stonepeak. “With its proven asset base and operating
history, we believe that Clean Energy has differentiated itself
both within this space and relative to earlier stage verticals and
other platforms pursuing the energy transition. We look forward to
partnering with the Clean Energy team in supporting the company’s
next phase of growth.”
Clean Energy is currently developing a portfolio of RNG
production facilities at dairies across the country. The first
project is producing RNG in Texas and supplying it to the
transportation market in Oregon through the state’s low carbon
fuels program. Multiple other facilities are in the final stages of
completion. The company is also expanding its RNG fueling
infrastructure, which currently includes over 600 stations across
North America. This comes at a time when Cummins Inc. is testing a
new larger natural gas engine for heavy-duty trucks with companies
like Walmart, Werner, Knight Swift, and UPS. These fleets are
experiencing an improved fuel economy with more torque and power
than previous models, while at the same time dramatically reducing
greenhouse gas (GHG) and NOx emissions compared to diesel. The 2024
commercial launch of the Cummins X15N engine is much anticipated by
the industry.
RNG is a biogenic fuel made entirely from organic waste at
facilities like dairy farms. Agriculture accounts for over 10% of
U.S. GHG emissions and the transportation sector accounts for
another 28%, according to the U.S. Environmental Protection Agency.
Capturing methane from farm waste lowers these emissions. RNG,
produced by that captured methane and used as a transportation
fuel, significantly lowers GHG emissions on a lifecycle basis when
compared to diesel. This allows RNG to be one of the only
transportation fuels to receive a negative carbon-intensity score
by the California Air Resources Board based on the reduction of
emissions at the source and at the vehicle.
Summary of Financing Terms of the Loan
The term loan bears interest at 9.5% per annum. During the first
two years, Clean Energy may elect to pay up to 75% of the interest
in kind. The term loan matures on December 12, 2029 and may be
repaid by Clean Energy at any time in an amount that results in
Stonepeak achieving the greater of (i) 11.5% internal rate of
return and (ii) 1.4x multiple on invested capital, subject to
certain exceptions. In connection with this transaction, Clean
Energy issued warrants to Stonepeak for the purchase of 10 million
shares of common stock with an exercise price of $5.50 per share
and 10 million shares of common stock with an exercise price of
$6.50 per share. The warrants expire on June 15, 2032 and are
exercisable at any time after December 12, 2025.
For more information about this transaction, see the Current
Report on Form 8-K filing that will be accessible on the company’s
website.
About Clean Energy
Clean Energy Fuels Corp. is the country’s largest provider of
the cleanest fuel for the transportation market. Our mission is to
decarbonize transportation through the development and delivery of
renewable natural gas (RNG), a sustainable fuel derived by
capturing methane from organic waste. Clean Energy allows thousands
of vehicles, from airport shuttles to city buses to waste and
heavy-duty trucks, to reduce their amount of climate-harming
greenhouse gas. We operate a vast network of fueling stations
across the U.S. and Canada. Visit www.cleanenergyfuels.com and
follow @ce_renewables on X.
About Stonepeak
Stonepeak is a leading alternative investment firm specializing
in infrastructure and real assets with approximately $57.9 billion
of assets under management. Through its investment in defensive,
hard-asset businesses globally, Stonepeak aims to create value for
its investors and portfolio companies, with a focus on downside
protection and strong risk-adjusted returns. Stonepeak sponsors
investment vehicles focused on private equity and credit. The firm
provides capital, operational support, and committed partnership to
grow investments in its target sectors, which include
communications, energy and energy transition, transport and
logistics, social infrastructure, and real estate. Stonepeak is
headquartered in New York with offices in Hong Kong, Houston,
London, Singapore, and Sydney. For more information, please visit
www.stonepeak.com.
Safe Harbor Statement
This press release contains 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, including statements about, among other things, the
expansion of our fueling infrastructure and our new RNG production
facilities, as well as our ability to deploy capital to grow our
business. Forward-looking statements are statements other than
historical facts and relate to future events or circumstances or
the company’s future performance, and are based on the company’s
current assumptions, expectations and beliefs concerning future
developments and their potential effect on the company and its
business. Actual results, performance or achievements and the
timing of events could differ materially from those anticipated in
or implied by these forward-looking statements as a result of many
factors, including, among others, those set forth in the risk
factors or elsewhere in the company’s periodic reports filed with
the Securities and Exchange Commission (www.sec.gov), including its
Quarterly Report on Form 10-Q for the quarter ended September 30,
2023 that the company filed with the Securities and Exchange
Commission on November 9, 2023. Such risk factors and other
statements may also be amended, supplemented or superseded from
time to time by other reports the company files with the Securities
and Exchange Commission. The forward-looking statements made herein
speak only as of the date of this press release and, unless
otherwise required by law, Clean Energy undertakes no obligation to
publicly update such forward-looking statements to reflect
subsequent events or circumstances.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231213361282/en/
Clean Energy Media Contact: Gary Foster 1-949-437-1113
Gary.Foster@cleanenergyfuels.com
Clean Energy Investor Contact: Thomas Driscoll
1-949-437-1191 thomas.driscoll@cleanenergyfuels.com
Stonepeak Contact: Kate Beers / Maya Brounstein
1-212-907-5100 corporatecomms@stonepeak.com
Clean Energy Fuels (NASDAQ:CLNE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Clean Energy Fuels (NASDAQ:CLNE)
Historical Stock Chart
From Apr 2023 to Apr 2024