AMSC Secures $25M In Capital
Devens-based AMSC, the wind energy company formerly known as American Superconductor, announced it has secured an infusion of capital from an institutional investor as it works to reduce its cash usage.
AMSC will raise approximately $25 million in gross proceeds through a securities purchase agreement with Capital Ventures International. The proceeds will be used for working capital and general corporate purposes, the company said.
"This financing provides an added backstop for our business as we pursue our growth and diversification strategy," Daniel McGahn, AMSC's president and CEO, said in a statement.
AMSC will make monthly payments on the 7 percent senior convertible notes starting four months after they are issued.
AMSC also has the right to require the investor to purchase up to an additional $15 million aggregate principal amount of unsecured senior convertible notes, if certain conditions are met.
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