Danbury-based FuelCell Energy Inc. (NASDAQ: FCEL) it has closed on a project debt financing transaction with Liberty Bank and Amalgamated Bank as senior lenders and the Connecticut Green Bank as subordinated lender for its Connecticut Municipal Electric Energy Cooperative (CMEEC) fuel cell microgrid-ready project at the Naval Submarine Base New London in Groton.
Liberty Bank and Amalgamated Bank”™s senior commitment totals $12 million with a seven-year term and Connecticut Green Bank”™s commitment totals $8 million with a 20-year term. Proceeds of this financing have been redeployed to FuelCell Energy and will be used to retire a $3 million corporate credit facility with Connecticut Green Bank, along with being used to fund project reserves and pay transaction fees.
“We are thrilled to enter into this long-term financing solution with this banking group,” said Michael Bishop, executive vice president and chief financial officer of FuelCell Energy. With its recurring revenue and cash flow profile, this fuel cell project allows for the efficient and cost-effective financing of our Company. In addition, we believe this financing further highlights financial institutions”™ confidence in the demonstrated long-term performance of our globally deployed power platforms. Lastly, the long-term nature of the loan commitments allows the Company to confidently redeploy that capital in support of our growth initiatives.”
