Ormat Technologies Announces Financial Closing and First Drawdown
on Long-Term Debt Financing for the Expansion of Olkaria III
Geothermal Power Complex in Kenya
RENO, Nev., Nov. 11, 2012 /PRNewswire/ -- Ormat
Technologies, Inc. (NYSE: ORA) announced today that OrPower 4,
Inc., its indirect wholly owned subsidiary, has completed the
financial closing of a previously announced limited-recourse
project financing totaling up to $310
million for the Olkaria III geothermal power complex located
in Naivasha, Kenya, with the
Overseas Private Investment Corporation (OPIC), an agency of the
United States Government.
(Logo: http://photos.prnewswire.com/prnh/20040422/LATH066LOGO)
On November 9, 2012, OrPower 4
Inc. received a disbursement of $85
million representing the full amount of Tranche I of the
OPIC Loan, and a disbursement of $135
million from Tranche II of the OPIC Loan. The
remaining amount of up to $45 million
of Tranche II of the OPIC Loan is expected to be drawn over time
prior to the commercial operation date of the Olkaria III expansion
which is expected mid-2013, subject to customary conditions
precedent.
Until commercial operation of the Olkaria III expansion, the
interest rate on the OPIC loan proceeds is variable and reset
weekly. The interest rate for the initial reset period is 2.94% per
annum.
A third Tranche of the OPIC Loan in an amount of up to
$45 million could be borrowed in the
event that Ormat elects to construct an additional phase of up to
16 MW, subject to the requirements of the OPIC Loan documents.
"We appreciate OPIC's commitment to expand the Olkaria III
geothermal complex up to 100 MW that will provide reliable, base
load, cost effective power to Kenya," said Dita Bronicki, Ormat's chief
executive officer. "We hope to be able to continue to work together
with OPIC on additional international projects generating clean
renewable energy. The OPIC support for these projects enables
us to obtain long term cost effective project financing, improve
their economics and strengthen our balance sheet," noted Ms.
Bronicki.
About OPIC
OPIC is the U.S. Government's development
finance institution, OPIC provides financial products, such as
loans and guaranties; political risk insurance; and support for
investment funds, all of which help American businesses expand into
emerging markets and solve critical development challenges.
About Ormat Technologies
Ormat Technologies, Inc. is a
leading geothermal company and the only vertically-integrated
company in the geothermal and recovered energy power business. The
company designs, develops, owns and operates geothermal and
recovered energy-based power plants around the world. Additionally,
the company designs, manufactures and sells geothermal and
recovered energy power units and other power-generating equipment,
and provides related services. The company has more than four
decades of experience in the development of environmentally-sound
power, primarily in geothermal and recovered-energy generation.
Ormat products and systems are covered by 82 U.S. patents. Ormat
has engineered and built power plants that it currently owns or has
supplied to utilities and developers worldwide, totaling over 1,500
MW of gross capacity. Ormat's current generating portfolio
includes the following geothermal and recovered energy-based power
plants: in the United States -
Brady, Brawley, Heber, Jersey Valley, Mammoth, McGinness Hills,
Ormesa, Puna, Steamboat,
Tuscarora, OREG 1, OREG 2, OREG 3,
and OREG 4; in Guatemala - Zunil
and Amatitlan; in Kenya – Olkaria
III; and, in Nicaragua -
Momotombo.
Ormat's Safe Harbor Statement
Information provided in
this press release may contain statements relating to current
expectations, estimates, forecasts and projections about future
events that are "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements generally relate to Ormat's plans,
objectives and expectations for future operations and are based
upon its management's current estimates and projections of future
results or trends. Actual future results may differ materially from
those projected as a result of certain risks and uncertainties. For
a discussion of such risks and uncertainties, see "Risk Factors" as
described in Ormat Technologies, Inc.'s Annual Report on Form 10-K
filed with the Securities and Exchange Commission on February 29, 2012 and Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on
November 8, 2012.
These forward-looking statements are made only as of the date
hereof, and we undertake no obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise.
Ormat
Technologies Contact:
|
Investor
Relations Contact:
|
Dita
Bronicki
|
Todd
Fromer/Rob Fink
|
CEO
|
KCSA
Strategic Communications
|
775-356-9029
|
212-896-1215 (Todd) /212-896-1206 (Rob)
|
dbronicki@ormat.com
|
tfromer@kcsa.com / rfink@kcsa.com
|
SOURCE Ormat Technologies, Inc.