FCEL stock is up in pre-market trading on December 12, 2019.
On November 25, 2019, FuelCell Energy announced it has completed the initial $80M draw of a $200M facility from Orion Energy Partners. The draw will primarily support execution of certain projects within the Company’s $2B project backlog. The balance of the facility, $120M, will be available over the next 18 months to invest in strategic growth, providing working capital as needed. Specifically, this corporate and construction finance facility with Orion Energy will be deployed towards current construction and engineering costs associated with inflight projects, including the CMEEC U.S. Navy Base fuel cell plant and final construction costs associated with the Tulare BioMAT project, which will be commercially operable in mid-December. The facility will also be used for future growth, including commencing the construction of the first of three FuelCell projects with LIPA. As a reminder, the Company will host a conference call on Tuesday, January 14, 2020 to review its financial performance. In addition, senior leadership will unveil the pillars of its transformation strategy under the direction of its newly appointed CEO, Jason Few. Conference call details will be provided later.
“Our investment in FuelCell has been grounded in an extensive due diligence process,” said Gerrit Nicholas, Co-Founder and Managing Partner of Orion Energy Partners. “Over the past several weeks, we have gone deeper on the Company’s business strategy, operating plans, various projects and extensive, $2 billion backlog. Coming out of this review, we are optimistic about FuelCell’s future and look forward to our continued close partnership as FuelCell Energy’s strategic transformation takes hold.”
“Orion Energy is an excellent partner,” noted Jason Few, President, Chief Executive Officer and Chief Commercial Officer of FuelCell Energy. “Validated by Orion Energy Partner’s confidence, commitment and this $200 million facility, we have laid the financial foundation to continue our strategic transformation and deliver on our project commitments and environmental benefits. We are firmly focused on the future and execution. To that end, I would like to congratulate the FuelCell team that is working to complete the Tulare BioMAT project. The delivery of the 2.8 megawatt plant running on biogas in the city of Tulare is a critical milestone for our organization, delivering power and significant environmental benefits to the city of Tulare; we have honored our commitments and continue to demonstrate to our global client base and key partners, that we are on a path to restore this great Company to industry leadership.”
Also on November 25, 2019, FuelCell Energy announced that its Board of Directors has appointed Chris Groobey to serve as a new independent director, effective November 20th, 2019. Groobey was most recently a partner at the law firm Wilson, Sonsini, Goodrich & Rosati and previously was a partner with the law firm Baker & McKenzie. Groobey’s appointment expands the Board to five directors, four of whom are independent. He will be a member of the Board’s Executive, Nominating and Corporate Governance, Audit and Finance, and Compensation Committees.