FuelCell $75 million perpetual convertible preferred talked at 4.5%-5.0%, up 15%-20%

By Ronda Fears

Nashville, Nov. 10 - FuelCell Energy Inc. after the close Wednesday launched $75 million of perpetual convertible preferreds talked to yield 4.5% to 5.0% with a 15% to 20% initial conversion premium.

Citigroup Global Markets Inc. is sole bookrunner of the Rule 144A deal, which is slated to price after the market close Thursday.

The issue will be non-callable for five years, and the company can force conversions after five years if the stock is 150% of the conversion price.

There is full dividend and takeover protection for holders.

A $50 million greenshoe is available.

Danbury, Conn.-based FuelCell said proceeds would be used for product development and commercialization. The company is involved in carbonate fuel cell technology for stationary power generation. It's in the process of commercializing its core carbonate fuel cell products, called Direct Fuel Cell Power Plants, and is beginning development of solid oxide fuel cell technology.

FuelCell Energy shares closed Wednesday up 3 cents, or 0.26%, to $11.62. In after-hours trading, the stock was down 92 cents, or 7.92%.

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