Why Investors Were Energized by FuelCell Energy Stock Today
The shares of FuelCell Energy (NASDAQ: FCEL) are going to have quite a week, if their performance on Monday is any indication. The company's stock zoomed nearly 7% higher on Monday thanks to a new financing deal. That rate easily bettered the 0.3% increase of the S&P 500 index that day.
FuelCell announced that it has agreed to a deal in which two local lenders will provide debt financing for a pair of the company's fuel cell projects. Of the $13 million that is being supplied, Liberty Bank's senior credit facility is to provide $6.5 million and Connecticut Green Bank $3 million in a subordinated facility. The latter company will also contribute an additional credit facility totaling $3.5 million.
The term of the Liberty Bank facility is seven years, FuelCell added, while that of Connecticut Green Bank's subordinated financing is 14 years. Their respective interest rates are fixed at 7.25% and 8%. The monies available to the borrower totaled roughly $11.6 million once transaction fees and debt service reserves were accounted for.
Source Fool.com
