PF Archive

OrCal: California steaming

01 12 2005

Ormat Technologies has completed a $165 million 144A issue to refinance its OrCal Geothermal portfolio. The financing, which closed on 8 December, indicates that geothermal assets are fast becoming popular with a new investor base. It also indicates that geothermal producers are able to get satisfactory, although not yet top-tier, pricing. Ormat is a specialist operator and manufacturer of geothermal and heat recovery technology. Ormat Technologies has been listed on the New York Stock Exchange since November 2004, and was founded by Ormat Industries, an Israeli company. Ormat has operations in the US, Central America and Africa, among other regions. Ormat is unique in its focus on geothermal assets, and has built up a sizeable portfolio in the western US. It has bought, expanded, and developed geothermal resources in Nevada, California and Hawaii. (For more on Ormat, please see the June 2005 profile in Renewable Finance). On 18 December 2003, it paid $214 million for Covanta Energy's geothermal assets as part of a bankruptcy court-ordered auction. It financed this purchase through a $154 million loan from Beal Bank due 2019....