Transaction: Fuelcell Energy Closes Debt Financing For Fuel Cell Projects in Derby
Danbury, USA - US fuel cell company Fuelcell Energy has closed project financing with Liberty Bank and Connecticut Green Bank for two of the company's recently commissioned fuel cell projects in Derby, Connecticut.
The term of the senior facility is 7 years and the term of the subordinated credit facility is 14 years. The interest rate for the senior loans is 7.25 per cent and for the subordinated loans 8 per cent. The transaction was completed on 25 April 2024. After deducting transaction fees and debt service reserves, Fuelcell Energy has received a total of approximately USD 11.6 million.
"This financing allows the company to confidently redeploy capital in support of growth initiatives around the world, as we work with customers to meet their clean-energy, resiliency, reliability, energy security, affordability, and decarbonization needs," said Michael Bishop, Executive Vice President and Chief Financial Officer of Fuelcell Energy, welcoming the financing deal.
"We are proud to again partner with FuelCell Energy and the Connecticut Green Bank on financing utility scale projects in the state," added Daniel Longo, First Vice President of Liberty Bank. "This financing partnership with Liberty Bank and FuelCell Energy exemplifies how private and public capital can work together to add more reliable clean power to the grid while avoiding local air emissions, creating manufacturing jobs in our state, and helping low-income families reduce their energy burden," said Bert Hunter, Executive Vice President and Chief Investment Officer of Connecticut Green Bank.
The two Derby projects comprise a 14 MW fuel cell park and a 2.8 MW baseload fuel cell project. The fuel cell modules for both plants were manufactured at Fuelcell Energy's factory in Torrington, Connecticut, USA. The Derby projects are utilised under 20-year power purchase agreements with Eversource and United Illuminating to supply competitively priced Class I baseload power. In Connecticut, a Class I renewable energy source is legally defined as electricity generated from wind, geothermal or fuel cells.
Fuelcell shares are performing dynamically in today's trading and have almost completely recouped the previous week's losses by midday. The RENIXX Group share is currently trading up 4.5 per cent at a price of EUR 0.813 (1:18 p.m., 29 April 2024, Stuttgart Stock Exchange).
Source: IWR Online, 29 Apr 2024
