FuelCell Energy secures $13 million in project financing

Danbury, Conn. – FuelCell Energy, Inc. (NASDAQ: FCEL) has partnered with Liberty Bank and Connecticut Green Bank for two of its fuel cell projects in Derby, Conn. A project financing agreement totaling US$13 million was finalized.

Liberty Bank has committed $6.5 million in senior debt, while Connecticut Green Bank has provided $3 million in senior debt and another $3.5 million in subordinated debt. The senior debt term is 7 years and the fixed interest rate is 7.25%; the subordinate debt term is 14 years and the fixed interest rate is 8%. After deducting transaction costs and debt service provisions, FuelCell Energy had net funding of approximately $11.6 million.

Michael Bishop, executive vice president and chief financial officer of FuelCell Energy, expressed gratitude for the partnership and the financial institutions' confidence in the company's fuel cell platform. The financing is expected to support the company's global growth plans in the clean energy sector.

Liberty Bank's Daniel Longo highlighted the projects' contribution to Connecticut's sustainability goals, and Connecticut Green Bank's Bert Hunter highlighted the impact of the nation's first community fuel cell program on the state's hydrogen fuel cell industry. importance.

Financing projects include the second largest 14-megawatt fuel cell park in the United States and a 2.8-megawatt base-load fuel cell project. Both projects provide Class I renewable energy to Connecticut's grid under 20-year power purchase agreements.

FuelCell Energy is known for its fuel cell technology platform, delivering sustainable energy solutions around the world. The company's fuel cell modules are manufactured in Connecticut, using primarily U.S. materials and suppliers.

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This financial move, based on a press release statement, reflects continued support for FuelCell Energy's operations and Connecticut's broader clean energy initiatives.

Investment Professional Insights

FuelCell Energy, Inc. (NASDAQ: FCEL) recently secured a financing agreement that solidifies its position in the renewable energy space. While the deal reflects confidence in the company's technology and projects, a deeper understanding of the company's financials and market performance through InvestingPro can provide a more nuanced picture.

InvestingPro Data puts its market capitalization at $393.4 million, showing the company's size compared to industry peers. With a negative P/E ratio of -3.31 in the trailing twelve months to Q1 2024, investors can see that the company is not currently generating profits relative to its share price. Additionally, revenue fell by -24.12% in the last 12 months, indicating that FuelCell Energy faces challenges in growing its top line.

Among InvestingPro's recommendations, two are particularly notable in the context of the company's recent funding news. First, FuelCell Energy holds more cash than debt on its balance sheet, which is a positive sign for financial stability and could help strengthen Liberty Bank and Connecticut Green Bank's performance in recent trading Confidence.

It's worth noting, though, that the company is burning through cash at a rapid pace, raising concerns about its long-term financial sustainability, especially considering analysts expect sales to decline this year.

For readers looking to gain a deeper understanding of FuelCell Energy's financial health and market prospects, InvestingPro provides comprehensive analysis and other tips. https://www.investing.com/pro/FCEL also provides 15 additional InvestingPro Tips for FCEL, which allow investors to understand the company's performance and prospects in more detail.Use coupon code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount, providing valuable insights for informed investment decisions.

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