Capstone Turbine places $30 million three-year notes; York wraps $20 million 4.54% notes

By Devika Patel

Knoxville, Tenn., Feb. 5 – Tuesday saw two new private placement offerings announced: Chatsworth, Calif.-based Capstone Turbine Corp., a maker of low-emission microturbine systems, completed a $30 million private placement of three-year 13% senior secured notes, and York, Pa.-based water purifying company York Water Co. sold $20 million of 20-year 4.54% senior notes.

Capstone completed its private placement on Monday.

Goldman Sachs Specialty Lending Holdings, Inc. was the agent and was also an investor.

Proceeds were used to pay in full the company’s obligations under a June 2, 2017 business financing agreement with Western Alliance Bank.

Also on Monday, Capstone sold a warrant for 4,046,337 shares to Goldman Sachs & Co. LLC in a private placement for $150,000. These funds will be used for general corporate purposes.

York Water issued $20 million of 20-year 4.54% senior notes on Thursday. The deal priced on Jan. 18 and was conducted through agent PNC Capital Markets LLC.

The notes have a make-whole call option at Treasuries plus 50 basis points. They then become freely callable at par on Feb. 15, 2021.

Proceeds will be used to refinance $11 million of the company’s 10.17% series A senior notes due Feb. 1, 2019 and 9.6% series B senior notes due Feb. 1, 2019 and up to $9 million of short-term debt.

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