Danbury-based energy company FuelCell Energy Inc. announced Thursday it has secured $87 million in financing.
The company plans to use the funds to diversify its access to capital, repay existing debt, accelerate commercialization of its hydrogen fuel cell technologies, and for other initiatives and general corporate needs.
The 7-year term financing package includes an $80.5 million term loan and a $6.5 million debt service reserve letter of credit.
The financing involved multiple banks, including Investec Bank, Bank of Montreal, Liberty Bank, Connecticut Green Bank and Amalgamated Bank.
Following repayment of existing project debt, proceeds to the company were approximately $46.1 million of unrestricted cash and $14.5 million of restricted cash to fund performance reserves, according to a press release.
Michael Bishop, executive vice president and chief financial officer at FuelCell Energy, said this allows the company to “navigate the current volatility in the fixed-income markets and secure project financing at competitive pricing.”
“FuelCell Energy is always looking to diversify our sources of capital,” Bishop said.
Fred Petit, co-head of Investec’s North American Power & Infrastructure Group, said it has led more than $10 billion in energy and infrastructure project financings over the past five years.
“This successful closing for FuelCell Energy evidences our continued commitment to help decarbonize the U.S. economy,” Petit said. “We believe this financing strategy is ideal for FuelCell Energy, allowing the company to diversify its capital stack as well as access term project capital to support the growth of its business and operations of its existing assets.”
FuelCell Energy designs, manufactures, installs, operates and maintains fuel cell power plants.
Its customers range from utilities to universities, hospitals, manufacturers and the government.
Its 7.4-megawatt fuel cell project at the U.S. Navy Submarine Base in Groton went online in December.
