News

Nevada Geothermal grants warrants of US$6.4 million to TCW

Alexander Richter 2 Dec 2009

Nevada Geothermal Power Inc. has agreed to grant Trust Company of the West (TCW) warrants to purchase 4.5 million common shares at a price of C$1.50 per share for up to five years, (valued at around US$ 6.4 million).

Nevada Geothermal Power Inc. (TSX-V: NGP) announced today that, subject to regulatory approval, it has agreed to grant Trust Company of the West (TCW) warrants to purchase 4.5 million common shares at a price of C$1.50 per share for up to five years. The warrants will include a trigger clause such that if the closing price of the NGP common shares on the TSX-V exchange, or such other stock exchange upon which the common shares of NGP are listed, is greater than C$2.00 per share for a period of greater than 20 consecutive trading days, then TCW will have a further 30 days to exercise the warrants, failing which the warrants will terminate.

In consideration for the warrants, TCW has agreed to amend certain provisions in the TCW loan agreement which will facilitate NGP’s declaration of Commercial Operation under its third party power off-take agreement prior to closing a planned senior debt facility. Amendments to the TCW agreement are subject to final documentation.

NGP paid down the TCW loan by US$30 million on November 30, 2009 and is in full compliance with the TCW loan agreement with the agreed amendments.

“We are very pleased with our relationship with TCW and with the loan which did allow us to construct the Faulkner 1 plant during the period of the world bank crisis.” said Brian Fairbank, President and Chief Executive Officer. “We now look forward to the expected closing of a senior debt facility with the John Hancock Insurance Company which will allow NGP to significantly lower its cost of debt.”

Source: Company release via Benzinga