In order to provide funding to Capstone Turbine’s Capstone Energy Finance (CEF) joint venture, Capstone Turbine has entered into a strategic financing relationship agreement with Sky Group (Sky Solar Holdings, Ltd. and Sky Capital America, Inc.).
According to Capstone, Sky Group was granted right of first refusal to provide initial funding of up to US$50 million. Sky Group might also add an additional US$100 million at its discretion after Capstone and CEF spend their internal funding sources of up to US$25 million.
The ROFR also includes an option for Sky Group to jointly fund power purchase agreement (PPA) backed opportunities with Capstone, CEF, end use customers, and/or any authorized Capstone distributors under certain mutually agreeable conditions. The agreement will expire after three years following the effective date or upon the exhaustion of Sky Group’s Project Fund.
“Capstone’s new finance subsidiary has developed a US$20 million pipeline of well-qualified projects since its launch last December, and we expect to quickly surpass our ability to fund projects with our internal resources,” said Darren Jamison, Capstone’s president and chief executive officer.