News

Ormat raises US$142m in bond issuance

Ormat raises US$142m in bond issuance Galena 2 plant, United States (source: Ormat)
Alexander Richter 4 Aug 2010

Ormat Technologies raises US$142m in bond issuance and intends to use proceeds for corporate purposes, repayment, potential acquisitions and on development of current projects.

In a release, Ormat Technologies, Inc. (NYSE: ORA) announces “that on August 3, 2010, it has entered into a trust instrument governing the issuance of, and accepted subscriptions for, approximately $142 million in aggregate principal amount, of senior unsecured bonds (the “Bonds”). The Company is issuing the Bonds outside the United States to investors who are not “U.S. persons” in an unregistered offering pursuant to, and subject to the requirements of, Regulation S under the Securities Act of 1933, as amended (the “Securities Act”).

Subject to early redemption, principal of the Bonds is repayable in a single bullet payment upon the final maturity of the Bonds in August 2017. The Bonds bear interest at a fixed rate of 7% per annum, payable semi-annually. The Company intends to use the proceeds of the Bonds for general corporate purposes, which may include the repayment of existing indebtedness and the acquisition, directly or indirectly, of additional energy assets, including by way of construction, enhancement and expansion of its existing projects.”

“Ormat Technologies CEO Dita Bronicki said: “The terms and timing of this financing compliments and addresses our needs. The additional funds will enable us to accelerate construction plans, and begin the construction of four additional geothermal projects in the US, before the end of 2010. When added to the current portfolio of projects under construction, we have up to ten projects that could qualify for the ITC cash grant.”

Ormat Technologies share price rose 2.02% on the NYSE today to $28.83, giving a market cap of $1.31 billion.”

Source: Company release via PR Newswire (Benzinga), Globes (Israel)