FuelCell Energy Inc. has signed a construction loan facility with Generate Capital, a San Francisco-based financier of distributed energy and resource infrastructure.
The facility structure covers aggregate principal commitments up to $100 million, with accordion features expanding to $300 million based on performance criteria and funding availability.
The Danbury-headquartered FuelCell Energy will submit projects to Generate Capital over a 36-month period, and all construction loans will remain outstanding until the projects are commercially operational.
The initial draw amount under the facility, funded at closing, is $10 million for the Bolthouse Farms 5 MW project in California.
“This facility can be used for multiple projects, streamlining the time-consuming process of financing and asset deployment,” said Chip Bottone, FuelCell Energy’s president and CEO. “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.”
The new loan facility comes on the heels of a Dec. 4 warning from Nasdaq that the company could be delisted from the exchange if it failed to meet Nasdaq’s minimum price requirement of $1 by May 28, 2019, and remain at that level for a minimum of 10 consecutive business days. The warning was triggered by FuelCell Energy’s stock (FCEL) trading below the $1 threshold for 30 consecutive days. The stock opened this morning at 56 cents.