Ormat subsidiary seeks up to $105 million loan

By Sara Rosenberg

New York, Jan. 8 - Ormat Technologies Inc.'s wholly owned subsidiary, Orpower 4 Inc., is in the process of finalizing a new up to $105 million 10-year senior secured loan, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Deutsche Investitions- und Entwicklungsgesellschaft arranged the deal and is the agent.

Pricing on the loan is Libor plus 400 basis points with an option to convert the entire loan to a fixed rate.

There is 102 call protection for two years, then 101 for the following three years.

Covenants include a debt service cover ratio, a projected debt service cover ratio, a debt to equity ratio and an equity to total assets ratio.

Proceeds will be used to refinance Ormat's investment in a 48 MW Olkaria III geothermal power plant located in Naivasha, Kenya.

Loan proceeds are expected to be paid in two disbursements during the first half of 2009 following fulfillment of certain conditions.

Ormat is a Reno, Nev.-based company primarily engaged in the geothermal and recovered energy power business.

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