New Jersey-based Comverge, Inc. (Nasdaq: COMV), a demand response and smart grid company announced it has secured a new $25 million senior credit facility with Silicon Valley Bank.
The company said access to the funds will help it continue to grow during the current economic turmoil.
The new credit facility includes a $15 million term loan that is to be repaid over 5 years. The term loan will be used to repay most of Comverge’s existing $19.8 million in subordinated convertible notes that mature on April 1, 2009 and were issued as part of the two acquisitions completed last year. Further, the credit facility includes a $10 million revolving line of credit with a three-year term that will be available for general working capital needs and issuance of letters of credit.
Robert M. Chiste, Chairman, President and CEO, stated, "We are pleased that Silicon Valley Bank has shown confidence in Comverge and our business models as evidenced by their extension of this new financing, which enhances our near-term liquidity in the currently challenging credit markets. This credit facility, combined with our strong cash position and our available financing from GE Capital, provides for over $85 million of cash and financing to fund growth in our business over the coming years. During this period of uncertainty in the credit markets, we are fortunate to have created flexibility for Comverge well into the future."
Comverge, with over 2200 megawatts of clean energy capacity under management, is a leading provider of clean energy solutions that improve grid reliability and supply electric capacity on a more cost effective basis than conventional alternatives by reducing base load and peak load energy consumption.
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