*Enables Immediate Financing for Imclone Project and Improvement in SPI's Balance Sheet
*Creates Pathway Toward Funding for other Projects in North America
ROSEVILLE, Calif.-- SPI Solar ("SPI") (SOPW:OTCBB), a vertically-integrated photovoltaic ("PV") solar developer, today announced that it has executed agreements with KDC Solar and China Development Bank (CDB) to provide immediate financing for the previously announced Imclone project. The all-cash payment to SPI Solar, which resulted from CDB funding term debt to KDC Solar, was received from KDC Solar for the majority of funds owed on the project with the balance received from LDK Solar. This agreement removes $28.5 million of Imclone construction loan liability from SPI's balance sheet and creates a pathway toward funding for other solar projects, as well as other projects that are in the notice to proceed (NTP) status. The entire loan was off the company's balance sheet as of December 31, 2013.
"We are pleased with our major accomplishment in today's challenging financing market. This reflects SPI's ability to facilitate the trust and relationship between the China financing institutions and North America project owners. CDB's financing for the Imclone project enables SPI's collection of the EPC loan for the project, which allows SPI's on–time delivery of the loan payments to CDB. This successful execution will significantly improve our balance sheet position while leveraging our company strategies in partnering on solar project developments," said Charlotte Xi, president and global chief operating officer and interim chief financial officer. "We are hopeful that our stronger balance sheet and the successful financing of the Imclone project will lead to SPI securing future financing for our other projects, which will further deleverage our balance sheet."
About SPI Solar (SOPW:OTCBB):
SPI Solar ("SPI") (Solar Power, Inc.) is a vertically integrated photovoltaic solar developer offering its own brand of high-quality, low-cost distributed generation and utility-scale solar energy facility development services. From project development, to project financing and to post-construction asset management, SPI delivers turnkey world-class photovoltaic solar energy facilities to its business, government and utility customers. For additional information visit: www.spisolar.com.
Safe Harbor Statement:
This release may contain certain "forward-looking statements" relating to the business of SPI Solar, its subsidiaries and the solar industry, which can be identified by the use of forward-looking terminology such as "believes", "expects" or similar expressions. These statements involve known and unknown risks and uncertainties, including, but are not limited to, general business conditions, managing growth, and political and other business risk. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and the risks and other factors detailed in the company's reports filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.
Solar Power, Inc.
Charlotte Xi, 800-548-8767
President & Global COO, Interim CFO