FuelCell Energy Announces New $100+ Million Construction Loan Facility with Generate Capital

By December 27, 2018 3   min read  (437 words)

December 27, 2018 |

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DANBURY, Conn.— FuelCell Energy, Inc. (Nasdaq: FCEL), a global leader in delivering clean, innovative and affordable fuel cell solutions for the supply, recovery and storage of energy, today announced the signing of a project finance facility with a recognized leader in sustainable infrastructure investing, Generate Capital. The facility will be used by FuelCell Energy to finance the construction, installation and commissioning of the Company’s current and future project backlog and awards.  

Under the terms of the agreement, FuelCell Energy will submit projects to Generate Capital over a 36-month period. Once an individual project is funded, the construction loan will remain outstanding until the project becomes commercially operational. The facility structure provides for aggregate principal commitments up to $100 million, with accordion features enabling expansions up to $300 million, if certain performance criteria are met, subject to funding availability.

The initial draw amount under this facility, funded at closing, is $10 million. The initial draw reflects loan advances for the first approved project under the facility, the Bolthouse Farms five-megawatt project in California. Additional drawdowns are expected to take place as FuelCell Energy completes certain project milestones. The Company expects to use this project finance facility to fund the construction of its utility-scale backlog, including the three projects totaling 39.8 MW with PSEG Long Island (LIPA) and the two projects awarded pursuant to the Connecticut DEEP RFP, totaling 22.2 MW.   

“We are pleased to announce the closure of this project finance facility. This facility establishes a clear pathway to execute and build out our project backlog,” commented Chip Bottone, FuelCell Energy’s President and Chief Executive Officer. “Importantly, this facility can be used for multiple projects, streamlining the time-consuming process of financing and asset deployment. With available capital for much of our backlog now put in place, we can concentrate on project execution and implementation of our growth strategy for our fuel cell solutions.”

Jigar Shah, President and Co-Founder of Generate Capital said, “We are excited to be able to work with FuelCell Energy as they undertake the deployment of their megawatt-scale clean distributed energy solutions. Our unique approach to partnering and financing distributed energy infrastructure is perfect for innovative companies like FuelCell Energy, who need to find capital partners that understand and support their pathway to success.”

FuelCell Energy and Generate Capital will work collaboratively to source additional capital for long-term ownership upon achievement of commercial operations. The long-duration of project cash flows, high-quality nature of utility off-takers, and the continuous generation profile of the projects make them attractive to all project stakeholders – including customers and investors.

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