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United States : FUELCELL ENERGY INC. strengthens its relationship with NRG

August 8, 2014

FuelCell Energy Inc strengthened its relationship with NRG by sale of common stock and agreements over revolving construction and term loans financing. Stifel analyst Sven Eenmaa, notes that the greater influx of cash improved the construction financing access. The agreement is a positive advancement in solidifying the relationship with NRG with providing reasons to trust the company s power plants.

FuelCell announced the sale of 14.6 million shares to NRG at $2.39 per share, earning a total of $35 million with a warrant to purchase 2 million shares at $3.35 over the next 3 years.

The company sealed an agreement worth $40 million revolving construction and term loans financing with NRG to channel funds into its power plants offering the finance after the commercial operating date.

The funds will help in a smoother flow of construction financing before the Investment Tax Credit (ITC) deadlines.

The statement regarding the agreement will clear the doubt of investors regarding the follow through on the co-marketing relationship with NRG. The company achieved awards, but after the earnings report the power plant project has not been significant, which suggests that in the second half of 2014 the company will be backend-loaded.

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Source: TendersInfo (India)

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