FuelCell Energy Announces Debt Financing for Derby Power Projects
April 29 2024 - 8:00AM
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, said, “We are grateful for our
partnership with Liberty Bank and Connecticut Green Bank and the
support they are showing through efficient and cost-effective
financing that highlights their continued confidence they have in
the long-term performance of our fuel cell platforms. 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.”
Daniel Longo, First Vice President of Liberty Bank, said, “We
are proud to again partner with FuelCell Energy and the Connecticut
Green Bank on financing utility scale projects in the state. These
innovative projects provide clean renewable power to the
Connecticut grid, helping the state further its sustainability
goals under the Connecticut Renewable Portfolio Standard. Fuel
cells are an ideal distributed power generation solution for the
communities that Liberty Bank supports.”
Bert Hunter, Executive Vice President and Chief Investment
Officer of Connecticut Green Bank, said, “This is the nation’s
first community fuel cell project, which makes sense for
Connecticut’s leading hydrogen fuel cell industry. 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.
The two Derby projects include a 14-megawatt fuel cell park, the
second largest fuel cell park in the U.S. followed by FuelCell
Energy’s 15-megawatt fuel cell park in Bridgeport, CT. The Derby
projects are being used to deliver competitively priced baseload
class I renewable energy as part of 20-year power purchase
agreements with Eversource and United Illuminating. In Connecticut,
a class I renewable energy source is defined by statute as
electricity produced from wind power, geothermal power, or fuel
cells. The second project supported by this financing is the
2.8-megawatt baseload fuel cell project also located in Derby.
The fuel cell modules of both facilities were made in America at
FuelCell Energy’s Torrington, Connecticut, factory utilizing the
majority of U.S. based materials and suppliers.
About FuelCell EnergyFuelCell Energy, Inc. is a
global leader in sustainable clean energy technologies that address
some of the world’s most critical challenges around energy, safety,
and global urbanization. It collectively holds 531 fuel cell
technology patents in the United States and globally. As a leading
global manufacturer of proprietary fuel cell technology platforms,
FuelCell Energy is uniquely positioned to serve customers including
businesses, utilities, governments, and municipalities with
sustainable products and solutions. The company’s solutions are
designed to enable a world empowered by clean energy, enhancing the
quality of life for people around the globe. Learn more
at fuelcellenergy.com.
Contact:FuelCell Energy,
Inc.
Investor
Relationsir@fce.com 203.205.2491
Media
Relationskblomquist@fce.com203.546.5844
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