13.6.2007: Meldung: Ormat Technologies Announces Closing of Sale
Under the transaction structure, Ormat Nevada established a new subsidiary, OPC LLC ("OPC"), transferred the subject geothermal power projects to OPC, and sold limited liability company interests in OPC to the institutional equity investors. Ormat Nevada will continue to operate and maintain the projects and will receive initially all of the distributable cash flow generated by the projects until it gets back the capital it has invested in the projects, while the institutional equity investors will receive substantially all of the production tax credits and the taxable income or loss, and the distributable cash flow after Ormat Nevada has been returned its capital. Once the institutional equity investors reach a target after-tax yield on their investment in OPC, Ormat Nevada will receive substantially all of both distributable cash and taxable income. Ormat Nevada also has the option to buy out the investors" remaining interest in OPC at the then-current fair market value or, if greater, the investors" "capital account" balance in OPC. Should Ormat Nevada exercise this purchase option, it would thereupon revert to being sole owner of the projects.
Commenting on the transaction, Dita Bronicki, President and Chief Executive Officer of Ormat, said:" We are very happy to be able to utilize another tool to finance our growth plans, through the more efficient and timely use of the production tax credit and the accelerated depreciation, which we would not have been able to do using a traditional project finance vehicle."
Ormat Nevada was advised by Capstar Partners Capital LLC and BNP Paribas Securities Corp. in connection with the structuring and placing of the transaction.
About Ormat Technologies
Ormat Technologies, Inc. is a vertically-integrated company primarily engaged in the geothermal and recovered energy power business. The Company designs, develops, builds, owns and operates geothermal power plants. Ormat is a pioneer in Organic Rankine Cycle (ORC) technology and a leader in the manufacture of ORC power equipment.
It also designs, develops and builds, and owns and operates, recovered energy-based power plants. Additionally, the Company designs, manufactures and sells geothermal and recovered energy power units and other power generating equipment, and provides related services. Ormat products and systems are covered by approximately 70 patents. Ormat currently operates the following geothermal power plants: in the United States -- Brady, Heber, Mammoth, Ormesa, Puna and Steamboat; in the Philippines -- Leyte; in Guatemala -- Zunil; in Kenya -- Olkaria; and in Nicaragua -- Momotombo. In the U.S., Ormat owns and operates four OREG1 Recovered Energy Generation plants.
Ormat Technologies Contact:
CEO and President