9.12.2005: Meldung: Ormat Technologies, Inc.: the issuance of $165 million Senior Secured Notes
SPARKS, Nev., Dec. 8 / Ormat Technologies, Inc., announced today that Ormat"s indirect, wholly-owned subsidiary OrCal Geothermal Inc. ("OrCal"), which owns the Heber 1, Heber 2, and Gould projects, closed the issuance of $165 million 6.21% Senior Secured Notes due 2020 (the "Notes"), The Notes were issued as part of an offering under Rule 144A and Regulation S of the Securities Act of 1933, as amended, and have been rated BBB- by Fitch and Ba1 by Moody"s.
The proceeds from this issuance were used to prepay, in full, OrCal"s outstanding loan with Beal Bank, SSB and to pay for transaction costs. The Notes are secured by a security interest in the capital stock of certain of the issuer"s wholly owned subsidiaries and certain personal and real property (including power plants, assignable project contracts, insurance policies, revenues, and project accounts). The financing is non-recourse to OrCal"s direct and indirect parent companies or to other assets of such companies.
As previously disclosed in Ormat Technologies" Quarterly Report on Form10-Q for the third quarter of 2005, in anticipation of the issuance of the Notes, Ormat Technologies entered into a 7-year treasury security rate-lock agreement with a financial institution at a locked-in rate of 4.047% ("Rate-Lock"). Concurrently with the pricing of the Notes, the Rate-Lock has been terminated. The expected effective annual interest rate of the Notes is 5.75%. As a result of the prepayment of the Beal Bank loan, Ormat Technologies will report in the fourth quarter of 2005 a net charge of approximately $10.0 million, net of related tax of approximately $6.7 million.
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. It also designs, develops and builds, and plans to own and operate, 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 more than 70 patents. Ormat currently has operations in the United States, Israel, the Philippines, Guatemala, Kenya, and Nicaragua.
Ormat Technologies Contact: Investor Relations Contact Dita Bronicki Jeff Corbin/Todd Fromer CEO and President KCSA Worldwide +1-775-356-9029 212-896-1214/212-896-1215 firstname.lastname@example.org email@example.com / firstname.lastname@example.org