RENO, Nev., May 21 /PRNewswire-FirstCall/ -- Ormat Technologies, Inc. (NYSE: ORA - News) announced today that on May 18, 2009, its wholly-owned subsidiary, Ortitlan Limitada, signed a Note Purchase Agreement with TCW Global Project Fund II, Ltd., an energy and infrastructure investment vehicle managed by TCW Energy and Infrastructure Group (part of TCW Asset Management Company), providing for the issuance of up to $42 million to refinance Ormat's investment in the 20 MW Amatitlan geothermal power plant located in Amatitlan, Guatemala.
The closing of the sale and purchase of the Note under the Note Purchase Agreement and the payment of the Note purchase price proceeds to Ortitlan Limitada were consummated on May 21, 2009. The Note is scheduled to mature on June 15, 2016.
Ormat initially financed the development and construction of the project, as well as the drilling of wells, from internal funding sources. The power plant currently generates approximately 17MW and is scheduled to reach its design capacity towards the end of the second quarter of 2009, upon the connection of an additional well that was recently drilled.
"We are pleased with the competitive terms of the financing that we have secured for this power plant," commented Dita Bronicki, Chief Executive Officer of Ormat. "Guatemala in general, and the Amatitlan resource in particular, have potential for additional geothermal energy production. The terms of the financing that we have secured are typical non-recourse project finance, but enable us to proceed with the development of phase II expansion of the project in coordination with TCW once we determine that the resource can support it."