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| Heber Complex (Courtesy Ormat) |
In March 2012 Fitch, the ratings agency, reported that Heber 1 has been showing typical geothermal fluid losses over the last few years that have reduced its production. OrCal is addressing the performance of Heber 1 by drilling new wells over the next 12 months with the expectation of bringing on incremental production in the coming years, which Fitch views as supportive of the current rating. In addition, the sponsor is planning significant discretionary modernizations of the turbine and generator equipment as well as balance of plant upgrades that could benefit Heber 1 longer term.
Fitch later commented on the funding announcement: "Today's launch by OrCal Geothermal Inc. of a proposed Equity Transaction and Solar Access Rights defined under a Consent Solicitation Statement will not affect the rating on the company's outstanding $83.7 million senior secured notes, due December 2020,"
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