FCEL - FuelCell Energy Announces Debt Financing for Derby Power Projects | Benzinga
Continuing Strong Support for FuelCell Energy Platforms
Total of $13 Million in Senior and Subordinated Credit Facilities
DANBURY, Conn., April 29, 2024 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc., (NASDAQ:FCEL) today announced that the Company closed on a project debt financing transaction with Liberty Bank and Connecticut Green Bank for the company's two fuel cell projects in Derby, Conn., which recently began operations.
The financing is structured as back leverage to a project finance subsidiary of the Company supported by the strong cash flows of the projects and the investment grade quality of the offtakers. Liberty Bank's senior commitment totals $6.5 million and Connecticut Green Bank's is $3.0 million. Connecticut Green Bank will contribute an additional subordinated credit facility of $3.5 million totaling $13 million in gross financing.
The term of the senior facility is seven years, and the subordinated credit facility is 14 years. The interest rate for the senior debt is fixed at 7.25% and 8% for the subordinated debt. The transaction closed on April 25, 2024, and net funding to the Company totaled approximately $11.6 million after transaction fees and debt service reserves.
Michael Bishop, Executive Vice President and Chief Financial Officer of FuelCell Energy, ...