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FuelCell to acquire 14.9 megawatt fuel cell park from Dominion for $36.6M.

FuelCell (FCEL) announced that it has entered into an agreement to acquire the existing 14.9 megawatt fuel cell park in Bridgeport, CT from Dominion (D). FuelCell developed, constructed and commissioned the Bridgeport fuel cell park in December of 2013. FuelCell has operated and maintained the plant under a service agreement with Dominion Energy since it was commissioned. FuelCell intends to own and operate the plant as part of its generation portfolio. The transaction is expected to add annual revenue in excess of $15M per year, deliver EBITDA margins in excess of 50% and be accretive to FuelCell Energy's earnings per share. Under the terms of the agreement, FuelCell will acquire 100% of the equity interest in Dominion Bridgeport Fuel Cell, the owner of the 14.9 MW project asset, whose parent is currently Dominion Energy. This agreement is the result of a competitive bid process undertaken by Dominion. Total cash consideration to be paid is $36.6M. FuelCell Energy expects to fund the acquisition with a combination of third party financing and $15M of restricted cash on hand that is tied to the project and would be released at closing. Financing for this acquisition is expected to include a term lender and the Connecticut Green Bank, who also participated in the initial financing of the construction of the project. The closing of this transaction is expected to happen on or before December 31, subject to customary closing conditions and contingencies including closing third party financing.

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Publication:The Fly
Date:Nov 5, 2018
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