Utah, United States [RenewableEnergyWorld.com] Raser Technologies Inc. has restructured its existing US $15 million line of credit, funded by stockholders of the company. In connection with the amended agreement, Raser paid off $2.9 million of the loan principal and $0.4 million of accrued interest.
The maturity date of the remaining principal balance of $10.5 million was extended until July 31, 2010 and can be repaid early without penalty. Lenders who have funded a majority of the outstanding balance also have the right to demand early repayment of all or part of the outstanding balance at any time after November 15, 2009.
The principal balance, and any accrued interest thereon, can be paid in the form of cash or equity securities at the sole discretion of Raser. The interest rate remains the same as previously announced.
“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,” said Brent Cook, Raser’s CEO.
The company recently signed a term sheet with the Southern California Public Power Authority (SCPPA) for 110 megawatts of geothermal power. This prepaid power purchase agreement would provide the majority of funds required to build the power plants to produce that power. Raser is now seeking 30% clean energy grants authorized by the American Reinvestment and Recovery Act that would provide additional funding to cover up to 30% of the cost to build these plants.