Comverge Announces New $25 Million Credit Facility
EAST HANOVER, N.J., November 10, 2008 Company has over $85 million of available capital to grow business
Comverge, Inc. (Nasdaq: COMV), a leading provider of clean energy through demand response and energy efficiency, announced today that, on November 6, 2008, it entered into a new $25 million senior credit facility with Silicon Valley Bank.
The new credit facility includes a $15 million term loan that is to be repaid over 5 years. The term loan will be used to repay most of Comverge's existing $19.8 million in subordinated convertible notes that mature on April 1, 2009 and were issued as part of the two acquisitions completed last year. Further, the credit facility includes a $10 million revolving line of credit with a 3 year term that will be available for general working capital needs and issuance of letters of credit.
Robert M. Chiste, Chairman, President and CEO, stated, "We are pleased that Silicon Valley Bank has shown confidence in Comverge and our business models as evidenced by their extension of this new financing, which enhances our near-term liquidity in the currently challenging credit markets. This credit facility, combined with our strong cash position and our available financing from GE Capital, provides for over $85 million of cash and financing to fund growth in our business over the coming years. During this period of uncertainty in the credit markets, we are fortunate to have created flexibility for Comverge well into the future."
About Comverge
Comverge, with over 2200 megawatts of clean energy capacity under management, is a leading provider of clean energy solutions that improve grid reliability and supply electric capacity on a more cost effective basis than conventional alternatives by reducing base load and peak load energy consumption. For more information, visit www.comverge.com.
For Comverge Investors
This release contains forward-looking statements that are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release are not and do not constitute historical facts, do not constitute guarantees of future performance and are based on numerous assumptions which, while believed to be reasonable, may not prove to be accurate. These forward-looking statements include, but are not limited to, fluctuations in currency and interest rates, uncertainties relating to market price fluctuations, economic and market conditions, availability of financing in the debt and capital markets, uncertainty as to the availability and terms of future financing payments of our current debt, future cash and financing positions and certain assumptions upon which such forward-looking statements are based. The forward-looking statements in this release do not constitute guarantees of future performance and involve a number of factors that could cause actual results to differ materially, including risks associated with Comverge's business involving our products, the development and distribution of our products and related services, economic and competitive factors, our key strategic relationships, and other risks more fully described in our most recently filed Quarterly Report on Form 10-Q and Annual Report on Form 10-K. Comverge assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
For Additional Information
Michael Picchi
Executive Vice President and CFO
770-696-7660
Chris Neff
Director of Marketing
Comverge, Inc
973-947-6064
