Ormat Technologies considering issuing corporate bonds

By Jennifer Lanning Drey

Portland, Ore., April 9 - Ormat Technologies, Inc. is considering a corporate bond issuance as a potential source of financing for its upcoming growth plans, Joseph Tenne, chief financial officer of Ormat, said during a Friday presentation at the company's analyst day.

"If you look at our debt-to-capitalization ratio of 41%, that allows us to raise more debt on the corporate level," he said.

The company also could gain additional funding through its $175 million of unused corporate lines of credit, he said.

Additionally, the company is expecting about $100 million of project debt financing and a more than $100 million cash grant for its North Brawley project.

Ormat had $46.3 million of cash and cash equivalents at year-end 2009.

Execution of the company's 2010 growth plan will require approximately $364 million to cover new project construction, current and expected development, maintenance capital expenditures, exploration activities and production facilities.

Ormat is a Reno, Nev.-based builder of geothermal plants.

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