Xzeres completes $19.9m financing
Small US wind turbine vendor Xzeres has completed a $19.9m financing with Wells Fargo Bank and strategic investors, a move it says will bolster working capital and support an expanded a global product line.
The financing includes a new $15m term loan by Wells Fargo at an interest rate of Libor+3%, with a seven-year amortization schedule and due in 18 months.
Xzeres sold 14.1 million common shares and converted outstanding warrants into 3.2 million common shares for net proceeds of $4.9m in transactions involving existing investors in the financing.
It also retired all outstanding preferred stock and eliminated a significant amount of outstanding warrants totaling approximately 7 million equivalent shares.
As part of the transaction, the company retired its higher interest bearing loans totaling $12.8m
Chief financial officer Steven Shum says Xzeres is focusing on wind markets in India, Japan, Philippines and Vietnam, and also Europe and the Americas. The company claims to have a “substantial pipeline” of global opportunities.
Oregon-based Xzeres designs and manufactures on- and off-grid distributed wind turbine systems as well as energy efficiency solutions for commercial, light industrial and residential markets. It claims 9,300 turbine installations.