AMSC Increases Borrowing Capacity
American Superconductor Corp. (AMSC), a Devens-based wind and power grid company, announced it has increased its borrowing capacity through an amendment to its existing loan and a stock sales agreement.
According to AMSC, Hercules Technology Growth Capital Inc. of California advanced an additional $10 million in financing on top of an existing loan, increasing its borrowing capacity to $15 million. The company is expected to make interest-only payments for the first six months of the amended loan, or nine months if AMSC hits certain revenue targets. After that, the company is obligated to begin re-paying the loan in monthly installments through November 2016.
As part of the agreement, AMSC issued warrants to purchase up to 256,410 shares of common stock for Hercules at $1.95 per share. AMSC also lowered the price of Hercules’ existing common stock to $1.95 under the deal.
Meanwhile, New York-based MLV. & Co. has agreed to sell up to $30 million in common stock for AMSC under an agreement. MLV will use “commercially reasonable” efforts to sell AMSC’s shares at market prices under the agreement, AMSC said.
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