FuelCell draws $65.5 million under $200 million delayed-draw loan

By Devika Patel

Knoxville, Tenn., Nov. 25 – FuelCell Energy, Inc. made a $65.5 million second draw under a $200 million senior secured credit facility with Orion Energy Partners Investment Agent, LLC as administrative agent and collateral agent on Nov. 22, according to an 8-K filing with the Securities and Exchange Commission.

The company drew down $14.5 million under the delayed-draw term loan due Oct. 31, 2027 at closing on Oct. 31 to fully repay debt outstanding with NRG Energy, Inc. and Generate Lending, LLC and to fund dividends to be paid to the holders of the company’s 5% series B cumulative convertible perpetual preferred stock.

The company may draw the remainder of the facility over the first 18 months following the closing and subject to the agent’s approval to fund construction costs, inventory and other capital expenditures of additional fuel cell projects with contracted cash flows that meet or exceed a mutually agreed coverage ratio and inventory, working capital and other costs.

Cash interest of 9.9% per annum will be paid quarterly. In addition, PIK interest of 2.05% per annum will accrue and will be added to the outstanding principal balance of the facility but will be paid quarterly in cash to the extent of available cash after payment of the company’s operating expenses and the funding of reserves for the payment of outstanding debt to Connecticut and Connecticut Green Bank.

Each lender will fund its commitments in an amount equal to the principal amount of the loans to be funded, less 2.5% of the aggregate principal amount of the loans funded.

Outstanding principal will be amortized on a straight-line basis over a seven-year term in quarterly payments beginning one year after the closing.

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

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