Raser (RZ) Restructures Existing Line of Credit

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09:43:18 am on July 23, 2009

Raser Technologies just announced that it has restructured its existing $15 million credit line. It paid off some of the balance and got an extended repayment date for the rest. As part of the new agreement terms, Raser paid off $2.9 million of the principal and $0.4 million worth of accrued interest. The company got an extension of the maturity date on the remaining $10.5 million to July 31, 2010. However, the main lenders can demand early repayment anytime after November of this year.

Raser believes that restructuring this credit line will help them pursue opportunities for building new geothermal power plants, and they have already applied for loan guarantees and grants from the government for an 110 ME geothermal project in California and another 42 MW project.

In a company press release, Brent Cook, Raser’s CEO, commented on the company’s plans:

“This amended line of credit will allow us to focus more of our capital toward our development efforts. We believe we have several promising financing opportunities for growth that we expect to utilize in the near future.”

“The new administration is heavily focused on supporting efforts of renewable energy companies like Raser,” said Cook. “We will continue pursuing these government incentives. We believe the loan guarantees and other grants we have applied for are an attractive opportunity that can help our company grow.”


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