Environmental Power Corporation (Amex: EPG) has closed a $60 million tax-exempt bond financing through the Gulf Coast Industrial Development Authority, as well as the previously announced $15 million private placement of shares of its Series A 9% cumulative convertible preferred stock and common stock warrants. The bonds were issued at par and will pay a coupon of 7%. The proceeds of the bond offering will provide debt financing for four proposed renewable natural gas facilities in Texas being developed by Microgy, Inc. These facilities, when completed, will produce over 2.5 billion cubic feet annually of pipeline quality renewable gas.
Environmental Power issued in a private placement shares of its Series A 9% cumulative convertible preferred stock, convertible into shares of Environmental Power’s common stock and warrants to purchase shares of common stock, for an aggregate purchase price of $15 million. The proceeds of the private placement will be used to provide the remaining funds required to construct the Texas facilities, and for general corporate purposes.
Said Rich Kessel, President and CEO, “The bond financing represents a very attractive method of funding construction for our renewable gas facilities, and we believe that this can be used as a template for the financing of similar facilities in other locations across the country. With these transactions done, we can now forge ahead with construction of facilities that are expected to make significant impact on our cash flow and profit outlook. We intend to move forward aggressively to add additional projects to our portfolio of gas producing assets.”
Environmental Power Corporation 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 for its use to generate energy.
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