FuelCell Energy, Inc. has completed the acquisition of a 14.9 megawatt fuel cell park in Bridgeport, CT with Dominion Energy.
FuelCell Energy developed, constructed and commissioned the Bridgeport fuel cell park in December of 2013.
Since its commissioning, FuelCell Energy has operated and maintained the plant under a service agreement with Dominion Energy.
“The addition of this project asset to our generation portfolio is a major step towards our long-term strategy to diversify our generation portfolio, transitioning FuelCell Energy into a services focused business that delivers recurring revenue with strong EBITDA margins for our stockholders,” said Chip Bottone, President and CEO of FuelCell Energy.
“We certainly extend our appreciation to Liberty Bank, Fifth Third Bank, and the Connecticut Green Bank for their support and recognition of the social and economic benefits our fuel cell solutions deliver.”
Total cash consideration paid was $35.4m. FuelCell Energy funded the acquisition with a combination of third-party financing and $15m of restricted cash on hand that was tied to the project and released at closing.
Liberty Bank and Fifth Third Bank jointly provided the senior project-level debt facility of $25m and the Connecticut Green Bank provided additional subordinated capital.
“We are pleased to assist FuelCell Energy in securing competitive bank acquisition funding for the Bridgeport project,” said Bert Hunter, Chief Investment Officer, Connecticut Green Bank.
“This financing demonstrates once again FuelCell Energy’s ability to attract traditional project finance capital from commercial banks long available to solar, wind and hydro.”
Under the terms of the agreement, FuelCell Energy acquired 100% of the equity interest in Dominion Bridgeport Fuel Cell, LLC, from Dominion Generation, Inc., the original owner of the 14.9 MW project asset.