EAST HANOVER, N.J. & STAMFORD, Conn.--(BUSINESS WIRE)--Comverge, Inc. announced today that it has obtained a $40 million senior credit facility from GE Energy Financial Services to expand its clean energy programs, which reduce energy costs by increasing available electric capacity during periods of peak electricity demand.
GE Energy Financial Services' debt finance group lead-arranged the credit facility for Comverge's wholly owned subsidiary, Alternative Energy Resources, Inc. The credit facility, which has a seven-year term, will be used for capital expenditures and expansion of the subsidiary's existing and future awarded pay-for-performance Virtual Peaking Capacity™ programs. Designed to provide electric utilities with fully outsourced demand response provided by Comverge, these programs use a long-term pay-for-performance contract structure and provide demand response resources quickly and economically, with low risk to the utility.
GE Energy Financial Services identified Comverge as a leading demand response company within the clean energy industry, based on its innovative Virtual Peaking Capacity business model and its products that efficiently reduce demand for electricity during peak consumption periods.
"As utilities are faced with higher peak costs every year, our Virtual Peaking Capacity offering is gaining broad acceptance. This additional capital will help fuel the ramp-up of new programs that we expect to be awarded," said Comverge's Chairman, President and CEO, Robert M. Chiste. "We appreciate the financial support of GE Energy Financial Services, a leader in clean energy investing."
"This transaction with Comverge is GE Energy Financial Services' first corporate debt financing for a growing solutions provider in the strategically important demand response electricity management sector," said Tony Shizari, Managing Director and leader of the debt finance group at GE Energy Financial Services. "It goes hand-in-hand with GE Energy Financial Services' targeted effort in the renewables sector and aligns with GE's ecomagination program to help its customers meet their environmental challenges while reducing its greenhouse gas emissions."
With more than 70 dedicated professionals, GE Energy Financials Services' debt finance group provides a full complement of debt products and services for the energy and water industries, including structured, project and acquisition debt, equipment leases and loans, revolving credit facilities, fleet financing and corporate loans. Its GE Capital Markets affiliate provides arranging and syndication for many of these facilities.
About Comverge
Comverge is a leading provider of Clean Energy solutions that enhance grid reliability and enable utilities to increase available electric capacity during periods of peak energy demand on a more cost-effective basis than conventional alternatives. For more information, visit www.comverge.com.
About GE Energy Financial Services
GE Energy Financial Services' 300 experts invest globally with a long-term view, across the capital spectrum and the energy and water industries, to help their customers and GE grow. With $13 billion in assets, GE Energy Financial Services, based in Stamford, Connecticut, invests more than $5 billion annually in two of the world's most capital-intensive industries, energy and water. In renewable energy, GE Energy Financial Services has developed a strong record investing in wind, solar, biomass, hydro and geothermal power, and is growing its portfolio of $1.5 billion in renewable energy assets. More information: www.geenergyfinancialservices.com.
About GE
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit www.ge.com.
This press release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. An extensive list of factors that can affect future results are discussed in Comverge's Registration Statement on Form S-1 and other documents filed from time to time with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Comverge undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
Contacts
Comverge
Bud Vos, 973-884-5970
[email protected]
or
GE Energy Financial Services
Ken Koprowski, 203-961-5743
[email protected]
Britta Kons
GE Healthcare Global Services
[email protected]
1-203-400-1892