Broadwind Energy,Inc. (OTC Bulletin Board: BWEN) announced that it will raise approximately $100 million through thedirect sale of common stock to investment funds managed by Tontine Associates, LLC.
In addition, Broadwind has entered into non-binding letter of intentwith a strategic partner for additional financing, the company said in a statement. The agreement will beannounced if and when a definitive financing agreement is completed.
With the Tontine proceeds, Broadwind will accelerate its currentexpansion plans, invest in working capital to accommodate production growth expectations and finance potential acquisitions.
Broadwind CEO J. Cameron Drecoll, said, "This significant investment will accelerate our pursuit of becoming the premier provider ofcomponents and services to the wind industry."
In the capital-raising transaction, Broadwind will sell approximately12.5 million shares. The financing is subject to regulatory approval and isexpected to close in 2Q08.
"In addition to providing us with expansion capital, this investment provides working capital that will allow our platform companies to hire thepeople we need to meet our customers’ expectations for industry leaders,"said Lars Moller, Broadwind’s COO.Moller added that Broadwind intends to continue expanding its component manufacturing and service offerings through additional locations and complementary acquisitions.
He also said Broadwind intends to take several steps to further accelerate its renewables growth strategy:
- Invest in additional regional operations and maintenance centers in a "hub and spoke" strategy to service the growing wind energy market.
- Expand gear and tower production capacities at current locations and through "greenfield" facilities strategically located throughout North America.
- Hire additional employees at the corporate and platform levels.
- Continue to acquire businesses that complement Broadwind’s growth strategy.
"A rapidly growing supplier of components and services to the windindustry, such as Broadwind, has significant capital needs," said MattGadow, Broadwind chief financial officer. "From our planned unit exchange program in our operations and maintenance subsidiary to our materials purchasing in our manufacturing platforms, this capital will accelerate ourplans and provide us strategic advantages in what has been a fragmented industry."Financial and Accounting– Broadwind filed its Form 10-KSB on April 15, 2008. The company encourages investors and potential investors to read it and otherSEC filings carefully.– The company plans to file an 8-K shortly, along with the related financing documents of the capital raising transactions and thispress release.
About Broadwind Energy, Inc.
Broadwind Energy, Inc., Naperville, Ill., owns, supports andstrategically positions companies that manufacture, install and maintain components for energy and infrastructure-related industries with a primary emphasis on the wind energy sector. The company’s operational platforms include wind tower manufacturing, other heavy steel manufacturing, serviceand construction and precision gear manufacturing. Its platform companies currently include Brad Foote Gear Works, Inc., a precision gearing systems manufacturer in Cicero, Ill.; Energy Maintenance Service (EMS), a wind energy operation and maintenance service provider in Gary, S.D.; RBA Inc.,a heavy weld and machining fabricator in Manitowoc, Wis.; and Tower TechSystems, Inc., a wind tower manufacturer in Manitowoc, Wis. Broadwind andits platform companies employ approximately 800 people across the UnitedStates.
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