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Capstone Turbine Executes $12MM Revolving Credit Facility with Bridge Bank

June 07, 2017, 07:00 AM
Filed Under: Energy

Capstone Turbine Corporation, a clean technology manufacturer of microturbine energy systems, announced that it has entered into two Credit and Security Agreements with Bridge Bank, a division of Western Alliance Bank. Under the terms of the Credit Agreements, Capstone may borrow up to $12 million on a revolving basis.

“We are looking forward to our new banking relationship with Bridge Bank. Not only will this new credit facility provide us with an increase in borrowing availability compared to our old facility, but the overall total cost of capital of the facility will also be reduced,” said Jayme Brooks, Capstone’s Chief Financial Officer and Chief Accounting Officer. “We feel the service provided by Bridge Bank is a better fit for Capstone’s needs at this time as we continue to reduce our operating costs,” added Ms. Brooks.

The Credit Agreements with Western Alliance Bank are supported by the Export-Import Bank of the United States. Under the terms of the Credit Agreements, Capstone may borrow up to $12 million on a revolving basis depending on the amount of our eligible inventory and accounts receivable. The Credit Agreements are for a two-year period ending June 2, 2019.

“The move to Bridge Bank is yet another example of Capstone’s continued war on costs as our operating expenses are down dramatically from last year and are lower than other similar sized companies in our clean tech space,” said Darren Jamison, Capstone’s President and Chief Executive Officer of Capstone. “Over the past year, we have transitioned to several more cost competitive service providers, while maintaining or, in many cases, improving overall service levels. We have switched our external auditors, tax and payroll service providers, SEC counsel and now our banking relationship, to name just a few,” added Mr. Jamison.  

“We are pleased to have Capstone Turbine as a new client of Bridge Bank and appreciate the opportunity to work with such an industry leader.  We look forward to a long and mutually prosperous relationship supporting the Company’s financing, banking and treasury needs with flexibility and responsiveness as they continue toward achieving their various goals,” added Justin Vogel, Bridge Bank’s Business Line Manager in Southern California.

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