Ormat Technology raises $152 million in debt for Tuscarora and McGinness Hills
View in Tuscarora, Nevada (source: flickr/ googly, creative commons)
Alexander Richter
4 Nov 2011
Ormat Technologies through OFC2 and project subsidiaries raises US$152 million in debt guaranteed through a 80% loan guarantee, for its projects at Tuscarora and McGinness Hills.
Reported last week, “Ormat Technologies, Inc. (NYSE: ORA) announced that its wholly-owned indirect subsidiaries, OFC 2 LLC and its project subsidiaries (the “Issuers”), issued $151,739,500.00 in aggregate principal amount of their 4.687% Series A Notes due December 31, 2032.
The Series A Notes are guaranteed as to 80% of principal and interest thereon by the U.S. Department of Energy in accordance with and subject to the Department’s Loan Guarantee Program under Section 1705 of Title XVII of the Energy Policy Act of 2005.
The Series A Notes were issued under that certain Note Purchase Agreement, dated as of September 23, 2011, by and among the Issuers, OFC 2 Noteholder Trust, the U.S. Department of Energy, and John Hancock Life Insurance Company (U.S.A.), as Administrative Agent.
Proceeds of the Series A Notes will be used for the construction of Ormat’s Tuscarora and McGinness Hills geothermal power plants, which are scheduled to be built in two phases, with the capacity of the first phase expected to be up to approximately 48 MW.
Source: Company release
