Comverge Completes $40 Million in New Round of Financing
Comverge, Inc. announced recently that it has obtained a $40 million senior credit facility from GE Energy Financial Services to expand its clean energy programs, which reduce energy costs by increasing available electric capacity during periods of peak electricity demand.
GE Energy Financial Services’ debt finance group lead-arranged the credit facility for Comverge’s wholly owned subsidiary, Alternative Energy Resources, Inc. The credit facility, which has a seven-year term, will be used for capital expenditures and expansion of the subsidiary’s existing and future awarded pay-for-performance Virtual Peaking Capacity™ programs. Designed to provide electric utilities with fully outsourced demand response provided by Comverge, these programs use a long-term pay-for-performance contract structure and provide demand response resources quickly and economically, with low risk to the utility.
GE Energy Financial Services identified Comverge as a leading demand response company within the clean energy industry, based on its innovative Virtual Peaking Capacity business model and its products that efficiently reduce demand for electricity during peak consumption periods.
“As utilities are faced with higher peak costs every year, our Virtual Peaking Capacity offering is gaining broad acceptance. This additional capital will help fuel the ramp-up of new programs that we expect to be awarded,” said Comverge’s Chairman, President and CEO, Robert M. Chiste. “We appreciate the financial support of GE Energy Financial Services, a leader in clean energy investing.”
“This transaction with Comverge is GE Energy Financial Services’ first corporate debt financing for a growing solutions provider in the strategically important demand response electricity management sector,” said Tony Shizari, Managing Director and leader of the debt finance group at GE Energy Financial Services. “It goes hand-in-hand with GE Energy Financial Services’ targeted effort in the renewables sector and aligns with GE's ecomagination program to help its customers meet their environmental challenges while reducing its greenhouse gas emissions.”
With more than 70 dedicated professionals, GE Energy Financials Services’ debt finance group provides a full complement of debt products and services for the energy and water industries, including structured, project and acquisition debt, equipment leases and loans, revolving credit facilities, fleet financing and corporate loans. Its GE Capital Markets affiliate provides arranging and syndication for many of these facilities.
Comverge is a leading provider of clean energy solutions that enhance grid reliability and enable utilities to increase available electric capacity during periods of peak energy demand on a more cost-effective basis than conventional alternatives.
For more information, please visit: www.comverge.com