05.09.08

Environmental Power: Sale of Tax Exempt Bonds

Die untenstehende Meldung ist eine Original-Meldung des Unternehmens. Sie ist nicht von der ECOreporter.de-Redaktion bearbeitet. Die presserechtliche Verantwortlichkeit liegt bei dem meldenden Unternehmen.

Environmental Power Corporation announced that its subsidiary, Microgy Holdings, LLC, has completed a financing involving the sale of $62.4 million of tax-exempt bonds issued through the California Statewide Communities Development Authority. The proceeds of the bonds will be used to finance construction of the announced Riverdale Cluster and Hanford Cluster renewable natural gas (RNG®) projects. The Company originally received an allocation for $65.35 million in May, 2008 but will only require $62.4 million based on the latest estimates of capital and financing costs for these projects.

The bonds will bear interest at a rate of 9% per year and mature on December 1, 2038. The Company is required to pay interest only through 2013, with level debt service thereafter. Certain conditions must be met before the Company can draw bond proceeds. Additional details regarding the terms of the bonds and related agreements are available in a Current Report on Form 8-K filed with the Securities and Exchange Commission and available on the Company's website.

"We are pleased to have completed this financing, which we believe affirms the continued interest of the credit markets in our RNG® projects and their expected long-term revenue streams," said Rich Kessel, President and Chief Executive Officer of Environmental Power. "We are particularly pleased with the strong participation of the holders of our existing Texas tax-exempt bonds, who also decided to participate in the Riverdale and Hanford financing. Many of the same parties have expressed interest in the Bar 20 tax-exempt bond financing, which we anticipate closing by mid-October."

"I want to thank the California Statewide Communities Development Authority for all their assistance and support throughout the process," continued Kessel.

The Riverdale Cluster in Fresno County consists of anaerobic digesters at three adjacent dairies with an expected output of 621,000 MMBtu/year of RNG®. The Hanford Cluster in Kings County consists of three dairies with an expected output of 732,000 MMBtu/year of RNG®.

The Bar 20 Project in Fresno County consists of anaerobic digesters associated with two adjacent dairies with an expected output of 601,000 MMBtu/year of RNG®. The project received a volume cap allocation of $26.1 million in tax-exempt financing in July of this year.

Ziegler Capital Markets, headquartered in Chicago, served as the sole underwriter for the placement of the bonds.

ABOUT ENVIRONMENTAL POWER CORPORATION

Environmental Power Corporation is a developer, owner and operator of renewable energy production facilities. Its principal operating subsidiary, Microgy, Inc., holds an exclusive license in North America for the development and deployment of a proprietary anaerobic digestion technology for the extraction of methane gas from animal wastes and other organic waste for its use to generate energy. For more information visit the Company's web site at http://www.environmentalpower.com.

CAUTIONARY STATEMENT

The Private Securities Litigation Reform Act of 1995, referred to as the PSLRA, provides a "safe harbor" for forward-looking statements. Certain statements contained in this press release, such as statements concerning planned manure-to-energy systems, our sales pipeline, our backlog, our projected sales and financial performance, statements containing the words "may," "assumes," "forecasts," "positions," "predicts," "strategy," "will," "expects," "estimates," "anticipates," "believes," "projects," "intends," "plans," "budgets," "potential," "continue," "targets" "proposed," and variations thereof, and other statements contained in this press release regarding matters that are not historical facts are forward-looking statements as such term is defined in the PSLRA. Because such statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to: uncertainties regarding the terms of, investor interest in and ultimate sale of tax-exempt bonds and receipt of proceeds therefrom, uncertainties involving development- stage companies; uncertainties regarding project financing, the lack of binding commitments and/or the need to negotiate and execute definitive agreements for the construction and financing of projects, the sale of project output, the supply of substrate and other requirements and for other matters; financing and cash flow requirements and uncertainties; inexperience with the development of multi-digester projects; risks relating to fluctuations in the price of commodity fuels like natural gas, and our inexperience with managing such risks; difficulties involved in developing and executing a business plan; difficulties and uncertainties regarding acquisitions; technological uncertainties; including those relating to competing products and technologies; risks relating to managing and integrating acquired businesses; unpredictable developments; including plant outages and repair requirements; the difficulty of estimating construction, development, repair and maintenance costs and timeframes; the uncertainties involved in estimating insurance and implied warranty recoveries, if any; the inability to predict the course or outcome of any negotiations with parties involved with our projects; uncertainties relating to general economic and industry conditions, and the amount and rate of growth in expenses; uncertainties relating to government and regulatory policies and the legal environment; uncertainties relating to the availability of tax credits, deductions, rebates and similar incentives; intellectual property issues; the competitive environment in which Environmental Power Corporation and its subsidiaries operate and other factors, including those described in our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q, well as in other filings we make with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date that they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

     CONTACT:
     Public Relations Contact
     John Abrashkin
     Ricochet Public Relations
     (212) 679-3300 x121
     jabrashkin@ricochetpr.com

Nach oben scrollen
ECOreporter Journalistenpreise
Anmelden
x