Boston, MA 27/06/2013 (wallstreetpr) – FuelCell Energy, Inc. (NASDAQ:FCEL) is a global leader in the designing, manufacturing, operating and servicing of efficient ultra-clean and reliable fuel cell power plants. The company announced that they have successfully closed its 8% senior Unsecured Convertible Notes offering on June 25, 2013 which is due on June 15, 2018.
Under the terms of these Convertible Notes, the company will be paying a semi-annual interest in arrears and these notes will mature on June 15, 2018 unless they are converted in to the common stock of Fuel Energy. The conversion price as described is approximately $1.55 for every share of the company. This hereby means that the Unsecured Creditors of the company will receive 645.1613 shares of the company for every $1000 principal amount of convertible notes. These senior notes are the general obligations to the company ranking equally with the other unsecured indebtedness of the company. But these Convertible Notes have preferential senior rights to receive payment than any other indebtedness.
The net proceeds received by the company from the offering amounted to approximately $36 million which excludes the underwriting discounts and commissions and other offering expenses. These proceeds are utilized by the company to meet the working capital requirements and for other general corporate purposes.
Chip Bottone, the President and the Chief Executive Officer of FuelCell has remarkably said that the issuance of such convertible notes will help the company in continuing its strategies implementation and has further strengthened the Balance Sheet. This was very important from an investor’s point of view to have a strong Balance Sheet. These proceeds eventually will help the company to support the sales of pipeline and backlog orders.
FuelCell power plant generates efficient, reliable and ultra clean power at more than 50 locations worldwide. More than 1.6 billion kW hours of ultra clean power has been generated by the company using a wide range of fuels including natural gas and renewable biogas.
