Continued strong support for fuel cell energy platform
Senior and subordinated credit facilities totaling $13 million.
DANBURY, Conn., April 29, 2024 (Globe Newswire) — Fuel Cell Energy Co., Ltd.(Nasdaq: FCEL) today announced that it has completed a project debt financing transaction with Liberty Bank and Connecticut Green Bank for its two fuel cell projects in Darby, CT, which recently began operations. .
This financing is structured as back leverage to the Company's project finance subsidiary, supported by the project's strong cash flows and the off-taker's investment grade quality. Liberty Bank's senior commitment totals $6.5 million and Connecticut Green Bank's senior commitment totals $3 million. Connecticut Green Bank intends to contribute an additional $13 million aggregate subordinated credit facility.
The term of the senior facility is 7 years and the term of the subordinated credit facility is 14 years. The interest rate on the senior notes is fixed at 7.25% and the interest rate on the subordinated notes is fixed at 8%. The transaction closed on April 25, 2024 and resulted in total net financings for the Company, less transaction fees and debt service reserves, of approximately $11.6 million.
Michael Bishop, Executive Vice President and Chief Financial Officer of FuelCell Energy, said: “We are grateful for our partnership with Liberty Bank and Connecticut Green Bank and the support they have shown through efficient and cost-effective financing that demonstrates their continued confidence in our fuel cells.” Affects the long-term performance of the platform. With this funding, the company is confident to support growth initiatives around the world as it works with customers to meet their needs for clean energy, resilience, reliability, energy security, affordability and decarbonization. capital can be redeployed to ”
said Daniel Longo, First Vice President of Liberty Bank. These innovative projects will provide clean, renewable power to the state's power grid and help advance the sustainability goals of the state's Renewable Energy Portfolio Standards. Fuel cells are an ideal distributed generation solution for the communities Liberty Bank supports. ”
“This is the first community fuel cell project in the nation and a natural fit for Connecticut's leading hydrogen fuel cell industry,” said Bart Hunter, executive vice president and chief investment officer of Connecticut Green Bank. said. This financing partnership with Liberty Bank and FuelCell Energy leverages private capital while avoiding local air emissions, creating manufacturing jobs in the state, and helping reduce energy burdens for low-income households. It exemplifies how public capital can work together to add more reliable, clean power to the grid. .
Derby's two projects include a 14-megawatt fuel cell park, the second largest fuel cell park in the United States after FuelCell Energy's 15-megawatt fuel cell park in Bridgeport, Connecticut. The Darby project is being used to provide competitively priced baseload Class I renewable energy as part of a 20-year power purchase agreement with Eversource and United Illumination. In Connecticut, Class I renewable energy sources are defined by law as electricity generated from wind, geothermal, or fuel cells. His second project supported by this loan is a 2.8 MW baseload fuel cell project, also located in Derby.
The fuel cell modules at both facilities were manufactured in the United States at FuelCell Energy's Torrington, Conn., facility using the majority of U.S.-based materials and suppliers.
About fuel cell energy
FuelCell Energy, Inc. is a global leader in sustainable clean energy technologies that address some of the world's most important challenges in energy, safety, and global urbanization. The company holds a total of 531 fuel cell technology patents in the United States and worldwide. As a leading global manufacturer of proprietary fuel cell technology platforms, FuelCell Energy is uniquely positioned to deliver sustainable products and solutions to customers including businesses, utilities, governments and municipalities. The company's solutions are designed to enable a clean energy world and improve the quality of life for people around the world. For more information, please visit fuelcellenergy.com.
contact:
Fuel Cell Energy Co., Ltd.
PR for investors
ir@fce.com
203.205.2491
Media contact point
kblomquist@fce.com
203.546.5844
