FuelCell Energy gets $35 million facility, weighs issuing more debt

By Devika Patel

Knoxville, Tenn., June 12 – FuelCell Energy, Inc. arranged a $35 million secondary facility on Friday with Orion Energy Partners LP, the lender with which the company already has a $200 million credit facility.

The company’s management said that it is considering additional debt financing options.

“To be able to continue executing on our business strategy, despite the business effects of Covid-19, we have taken action to ensure liquidity through the next 12 months by securing a secondary loan commitment from Orion Energy Partners of up to $35 million for working capital and general corporate purposes,” president and chief executive officer Jason Few said on the company’s second quarter ended April 30 earnings conference call on Friday.

The new facility may be drawn down between now and Sept. 14.

“Subsequent to quarter-end, in order to alleviate substantial doubt about the company’s ability to continue as a going concern, today we are announcing that we have entered into a $35 million secondary financing facility through a fifth amendment to our existing $200 million credit agreement with Orion Energy Partners,” executive vice president, treasurer and chief financial officer Michael Bishop said on the call.

“In addition to this new facility with Orion, the company continues to evaluate new debt and equity financing options as we execute on our powerhouse business strategy across all of our product and technology platforms,” Bishop said.

FuelCell is a Danbury, Conn.-based designer and manufacturer of megawatt-scale fuel cell systems.

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