FuelCell Energy Closes $25 million Loan Facility
18 April 2016 - 10:30PM
FuelCell Energy, Inc. (Nasdaq:FCEL), a global leader in the
design, manufacture, operation and service of ultra‐clean,
efficient and reliable fuel cell power plants, today announced that
it has closed a long-term loan facility with Hercules Capital, Inc.
(NYSE:HTGC) for up to $25 million to support the
development of fuel cell projects. FuelCell Energy drew the
first tranche of $15 million at closing. Up to an additional
$10 million may be advanced under two subsequent tranches as
FuelCell Energy attains certain performance and financial
milestones.
“This credit facility provides growth capital as we pursue
larger multi-megawatt projects,” said Michael Bishop, Senior Vice
President and Chief Financial Officer, FuelCell Energy, Inc.
“Obtaining corporate debt financing enhances our maturing capital
structure as our fuel cell projects continue to attract preeminent
financial institutions, reflecting the compelling economics of
these projects and their ability to address energy resiliency
issues in an environmentally friendly manner.”
The 30 month secured facility matures in October, 2018, and
bears interest at a rate of 9.5% per annum, subject to the
variability of the prime interest rate. In the first year of the
long-term loan, only interest is payable. This interest-only period
may be extended for up to 24 months if the Company achieves certain
milestones. Further information with respect to this loan
facility is contained in a Current Report on Form 8-K to be filed
on or before April 20, 2016 by FuelCell Energy with the
U.S. Securities and Exchange Commission.
FuelCell Energy power plants utilize an electro-chemical process
to efficiently and cleanly generate power and steam. Using
chemistry to convert a fuel into power instead of burning leads to
ultra-clean power generation that has virtually no pollutants;
including nitrogen oxide (NOx), which causes smog, sulfur dioxide
(SOx), which contributes to acid rain, or particulate matter, which
can aggravate asthma. The power plants are easy to site in
cities as they are clean, quiet, use only minimal space and can be
located where the power is used, minimizing or even avoiding the
need for transmission towers. The power plants are
fuel-flexible, capable of using clean natural gas, on-site
renewable biogas, or directed biogas. The plants are very
versatile and can be configured for affordable and scalable carbon
capture, or generating 100 percent renewable hydrogen for vehicle
fueling when operating on biogas.
About Hercules Capital,
Inc.
Hercules Capital, Inc. (NYSE:HTGC) (“Hercules”)
is a leading specialty finance company focused on providing
senior secured venture growth loans to high-growth, innovative
companies in a broadly diversified variety of technology, life
sciences and sustainable and renewable technology industries. Since
inception (December 2003), Hercules has committed $5.9 billion to
349 companies and is the lender of choice for entrepreneurs and
firms seeking growth capital financing. For additional information,
please visit www.htgc.com.
About FuelCell EnergyDirect FuelCell® power
plants are generating ultra-clean, efficient and reliable power at
more than 50 locations worldwide. With more than 300
megawatts of power generation capacity installed, ready for
installation, or in backlog, FuelCell Energy is a global leader in
providing ultra-clean baseload distributed generation to utilities,
industrial operations, universities, municipal water treatment
facilities, government installations and other customers around the
world. The Company’s power plants have generated over four
billion kilowatt hours of ultra-clean power using a variety of
fuels including renewable biogas from wastewater treatment and food
processing, as well as clean natural gas. For
additional information, please visit www.fuelcellenergy.com, follow
us on Twitter and view our videos on YouTube.
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 and statements
regarding the Company’s plans and expectations regarding the
continuing development, commercialization and financing of its fuel
cell technology 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
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.
Direct FuelCell, DFC, DFC/T, DFC-H2 and FuelCell Energy, Inc.
are all registered trademarks of FuelCell Energy, Inc.
DFC-ERG is a registered trademark jointly owned by Enbridge, Inc.
and FuelCell Energy, Inc.
Contact:
FuelCell Energy, Inc.
Kurt Goddard, Vice President Investor Relations
203-830-7494
ir@fce.com
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