Thursday, May 19, 2016

USA, Idaho: U.S. Geothermal Raises USD 20 Million in Debt Financing

U.S. Geothermal Inc. Closes $20 Million Debt Financing With Prudential Capital Group (News Release)

U.S. Geothermal Inc. announced today that its wholly-owned subsidiary, Idaho USG Holdings LLC, closed on a $20 million debt facility from Prudential Capital Group

Under terms of the financing agreement, the company has the option, without obligation, to issue additional debt, up to $50 million in aggregate within the next two years. The initial $20 million loan has a fixed interest rate of 5.8% per annum. The loan principal amortizes over twenty years, with a seven-year term. Principal and interest payments are made semi-annually.

The loan is collateralized with the company's ownership interest in the Neal Hot Springs and Raft River projects. The 22 MW Neal Hot Springs project is owned 60% by the company and 40% by Enbridge. The 13 MW Raft River project is owned 95% by the company and 5% by Goldman Sachs.