Provides Further Validation of Ability to Fund Customer Finance
Programs
MANITOWOC, Wis.--(BUSINESS WIRE)--
Orion Energy Systems Inc. (NYSE Amex: OESX), a leading power technology
enterprise that designs, manufacturers and deploys energy management
solutions for the commercial and industrial sectors, announced today
that it has received a commitment for an additional tranche of financing
for an Orion Throughput Agreement (OTA) project.
Orion has received a commitment for an additional $1.4 million tranche
of financing from First Business Bank, headquartered in Madison, WI. The
financing will provide funding to support the equipment and purchases
underlying a specific OTA contract with a key customer, involving the
retrofitting of Orion's Compact Modular lighting system and the new
installation of InteLite® wireless controls. The debt
agreement will bear interest at 6.75% with a five-year term, and is
expected to close in early 2011. The additional OTA-related financing
follows the previously-announced initial $2.4 million financing
agreement in September 2010 with First Business Bank relating to several
other OTA customer contracts.
Neal Verfuerth, Chief Executive Officer of Orion commented, "The
commitment from First Business Bank for an additional tranche of
OTA-related funding further validates our ability to obtain ongoing
financing at a reasonable cost of capital in order to continue to grow
our customer finance programs. As was the case with the initial funding
in September, the $1.4 million follow-on tranche will enable the Company
to be net cash flow positive for this specific OTA project at its
inception."
"Orion is pursuing a growing pipeline of debt financing alternatives in
order to scale its portfolio of OTA projects. Management continues to
remain focused in obtaining this financing at attractive rates,"
continued Mr. Verfuerth. "We're receiving encouraging feedback from
regional financial institutions on their interest in funding our OTA
projects due to the compelling economic value proposition it offers to
all parties involved."
Orion Energy Systems Inc. (NYSE Amex: OESX) is a
leading power technology enterprise that designs, manufactures and
deploys energy management systems — consisting primarily of
high-performance, energy efficient lighting systems and controls and
related services for commercial and industrial customers — without
compromising their quantity or quality of light. For more information,
visit www.oesx.com.
Orion Energy Systems Inc.
Investor Relations Contact:
Mike
Harris, Vice President - Investor Relations
(920) 892-5412
mharris@oesx.com
Source: Orion Energy Systems Inc.
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