- Loan guarantee to support nationwide deployment of
approximately 7,500 high-power fast charging stalls
- EVgo to host investor conference call at 5 p.m. ET today
EVgo Inc. (NASDAQ: EVGO) (“EVgo” or the “Company”) today
announced the closing of its $1.25 billion guaranteed loan facility
from the U.S. Department of Energy (“DOE”) Loan Programs Office
(“LPO”) under its Title 17 Clean Energy Financing Program to
support EVgo’s forthcoming efforts to build convenient, reliable
public charging infrastructure for electric vehicles (EVs) with the
construction of 7,500 new fast charging stalls nationwide. This
buildout will bring EVgo’s total owned and operated network to at
least 10,000 fast charging stalls, allowing the Company to more
than triple its network footprint by 2029.
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the full release here:
https://www.businesswire.com/news/home/20241212262441/en/
EVgo fast charging network to further
expand across the United States. (Photo: Business Wire)
“As one of the nation’s leading public fast charging providers,
we are well-positioned to deploy the infrastructure needed to
support both current and future domestic investments in
transportation electrification,” said EVgo CEO, Badar Khan. “This
public-private partnership will help us continue to scale our
operations to serve the influx of vehicle options that will be
available to American consumers in the coming years.”
Building high-power public charging at scale bolsters range
confidence for Americans as they consider the choice to drive an
EV. Expanding fast charging infrastructure not only contributes to
job creation and local economic benefits, but it is also critical
to protecting the investments made by the automotive industry,
which is expected to release over 30 new affordable EV models by
the end of 2025,1 in addition to the more than 70 vehicle models
already available to American consumers today.2 EVs now account for
roughly 9% of new vehicle sales3 and increasing consumer confidence
in the availability of public charging is key to the success of
these investments.
EVgo estimates this project buildout will create more than 1,000
jobs in the U.S., over 700 of which will be contracted resources
engaged by the Company encompassing roles in construction,
engineering, development, and operations and maintenance.
Terms of the $1.25 Billion Guaranteed Loan Facility
Total Guaranteed Loan Facility Amount
- $1.25 billion • Principal: $1.05 billion • Capitalized
interest: Up to $193 million
Interest Rate
- Interest rates fixed from the date of each quarterly advance
for the term of the loan at the applicable long-dated U.S. Treasury
rate with an aggregate risk-based charge and liquidity margin of
approximately 1.2%
Collateral
- EVgo has contributed 1,594 charging stalls from its existing
public network to the project as project collateral
Equity Contribution
- Project cashflows are expected to provide the additional cash
equity from EVgo over the course of the loan
Tenor
- 17 years from date of first drawdown
Deployment Period
- 5-year deployment period starting 2025, ramping annually to
reach approximately 7,500 fast charging stalls
Principal & Interest Grace Period
- Scheduled principal repayments do not begin until after end of
deployment period
- Interest during the deployment period is capitalized, instead
of being paid in cash
Loan Structure
- Limited recourse project financing, secured by project
assets
First Drawdown
- Subject to satisfaction of all conditions precedent, the first
drawdown of approximately $75 million is expected in January
2025
Additional Key Terms
- Customary covenants and events of defaults for a limited
recourse project finance loan facility
- Customary conditions precedent to advances for a limited
recourse project finance loan facility
The closing of this DOE guaranteed loan facility follows receipt
of a conditional commitment on October 3, 2024, and marks the
conclusion of a thorough 18-month process.
Innovative Charging Solutions
Through the EVgo Innovation Lab, the Company is fostering
American innovation to advance the broader transportation
electrification ecosystem, including its extensive interoperability
testing and ongoing technical collaboration with leading automakers
and technology partners to support a superior customer experience
for drivers.
This technical innovation extends to the joint development of
next-generation charging architecture, for which EVgo will soon
secure domestic intellectual property rights. This architecture
will leverage EVgo’s learnings from serving over a million
customers nationwide to provide EVgo with more control over the
full customer experience, streamlining the charging process while
driving energy efficiency and cost savings. The Company plans to
deploy this new architecture beginning in the second half of
2026.
For more information about the EVgo network, visit
www.evgo.com.
Conference Call Information
A live audio webcast and conference call for EVgo’s DOE Loan
Facility will be held today at 5 p.m. ET / 2 p.m. PT. The webcast
will be available at investors.evgo.com, and the dial-in
information for those wishing to access via phone is:
Toll Free: (800) 715-9871 (for U.S. callers)
Toll/International: (646) 307-1963 (for callers outside the
U.S.) Conference ID: 9312273
This press release, along with other investor materials that
will be used or referred to during the webcast and conference call,
including a slide presentation will also be available on that
site.
Transaction Advisors Goldman Sachs acted as the financial
advisor to EVgo.
About EVgo
EVgo (Nasdaq: EVGO) is one of the nation’s leading public fast
charging providers. With more than 1,000 fast charging stations
across 40 states, EVgo strategically deploys localized and
accessible charging infrastructure by partnering with leading
businesses across the U.S., including retailers, grocery stores,
restaurants, shopping centers, gas stations, rideshare operators,
and autonomous vehicle companies. At its dedicated Innovation Lab,
EVgo performs extensive interoperability testing and has ongoing
technical collaborations with leading automakers and industry
partners to advance the EV charging industry and deliver a seamless
charging experience.
Forward-Looking Statements
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 Exchange Act, as amended.
Forward-looking statements generally relate to future events or the
Company’s future financial or operating performance. In some cases,
you can identify forward-looking statements because they contain
words such as “may,” “will,” “should,” “expects,” “plans,”
“anticipates,” “going to,” “could,” “intends,” “target,”
“projects,” “contemplates,” “believes,” “estimates,” “predicts,”
“potential” or “continue” or the negative of these words or other
similar terms or expressions that concern the Company’s
expectations, strategy, priorities, plans or intentions.
Forward-looking statements in this press release include, but are
not limited to, statements regarding the terms of the DOE loan
facility; the anticipated benefits and growth from the DOE loan
facility, including project build out plan, use of proceeds,
issuance, timing and availability of advances, satisfaction of
covenants and the absence of events of default; growth in the
demand for EV vehicles and charging infrastructure; the anticipated
release of new affordable EV models; anticipated job creation in
the US from the project buildout; the Company’s ability to scale;
the joint development and deployment of the Company’s
next-generation charging infrastructure, and the anticipated IP
rights, efficiencies, cost savings and launch plans. These
statements are based on various assumptions and on the current
expectations of EVgo’s management, and are not predictions of
actual performance. The Company’s expectations and beliefs
regarding these matters may not materialize. There are a
significant number of factors that could cause actual results to
differ materially from the statements made in this press release,
including changes or developments in the broader general market;
EVgo’s dependence on the widespread adoption of EVs and growth of
the EV and EV charging markets; EVgo's reliance on the DOE loan
facility, its ability to fully draw on the DOE loan facility and
its ability to comply with the covenants and other terms of the DOE
loan facility; competition from existing and new competitors;
EVgo’s ability to expand into new service markets, grow its
customer base and manage its operations; the risks associated with
cyclical demand for EVgo’s services and vulnerability to industry
downturns and regional or national downturns; fluctuations in
EVgo’s revenue and operating results; EVgo’s ability to satisfy the
required conditions, enter into definitive agreements and receive
loan funding in connection with, and to realize any anticipated
benefits and growth from, the DOE loan facility; unfavorable
conditions or disruptions in the capital and credit markets and
EVgo’s ability to obtain additional financing on commercially
reasonable terms; EVgo’s ability to generate cash, service
indebtedness and incur additional indebtedness; any current,
pending or future legislation, regulations or policies that could
impact EVgo’s business, results of operations and financial
condition, including regulations impacting the EV charging market
and government programs designed to drive broader adoption of EVs
and any reduction, modification or elimination of such programs due
to the results of the 2024 Presidential and Congressional
elections; EVgo’s ability to adapt its assets and infrastructure to
changes in industry and regulatory standards and market demands
related to EV charging; impediments to EVgo’s expansion plans,
including permitting and utility-related delays; EVgo’s ability to
integrate any businesses it acquires; EVgo’s ability to recruit and
retain experienced personnel; risks related to legal proceedings or
claims, including liability claims; EVgo’s dependence on third
parties, including hardware and software vendors and service
providers, utilities and permit-granting entities; supply chain
disruptions, inflation and other increases in expenses; safety and
environmental requirements or regulations that may subject EVgo to
unanticipated liabilities or costs; EVgo’s ability to enter into
and maintain valuable partnerships with commercial or public-entity
property owners, landlords and/or tenants (collectively “Site
Hosts”), original equipment manufacturers (“OEMs”), fleet operators
and suppliers; EVgo’s ability to maintain, protect and enhance
EVgo’s intellectual property; and general economic or political
conditions, including the conflicts in Ukraine, Israel and the
broader Middle East region, and elevated rates of inflation and
associated changes in monetary policy. The forward-looking
statements contained in this report are also subject to other risks
and uncertainties, including those more fully described herein and
in the Company’s filings with the Securities and Exchange
Commission, including the Company’s annual report on Form 10-K for
the fiscal year ended December 31, 2023, the Company’s quarterly
reports on Form 10-Q for the quarterly periods ended March 31,
2024, June 30, 2024 and September 30, 2024 and current reports on
Form 8-K. The forward-looking statements in this report are based
on information available to the Company as of the date hereof, and
the Company disclaims any obligation to update any forward-looking
statements, except as required by law.
1 Source: JD Power’s Future Vehicle Calendar (April 2024) 2
Source: EV Volumes, 2024 US EV sales 3
https://www.coxautoinc.com/market-insights/q3-2024-ev-sales/
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version on businesswire.com: https://www.businesswire.com/news/home/20241212262441/en/
EVgo Contacts For Investors:
investors@evgo.com
For Media: press@evgo.com
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