Clean Energy Fuels Corp. (Nasdaq: CLNE) announced that it has entered into a six-year $300 million senior secured term loan with Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets. The credit agreement also provides for a two-year delayed draw term loan commitment of an additional $100 million.
In addition to repaying existing loans, the financing from Stonepeak will provide Clean Energy with capital for new renewable natural gas (RNG) production facilities, as well as the expansion of the company’s fueling infrastructure targeting the heavy-duty truck market. Clean Energy currently provides RNG to hundreds of fleets every day in the form of compressed natural gas (CNG) and liquified natural gas (LNG), which enables them to decarbonize their large vehicles easily and affordably.
“ Stonepeak is one of the most well- admired structure investment enterprises operating in the energy transition space and we ’re agitated to mate with them as we grow our RNG business, ” said Clay Corbus, elderly vice chairman for strategic development and head of Renewable Energies at Clean Energy. “ This backing agreement is veritably timely as we continue to see further RNG development openings come our way, and as we anticipate erecting fresh stations to accommodate increased demand due to the appearance of Cummins 15- liter natural gas machine. ”
“ We see RNG as a practical and affordable energy result for the transportation sector, with winds supporting adding adoptability. This, combined with its capability to check fugitive methane emigrations, makes it a critical part of decarbonization structure, in our view, ” said Michael Bricker, Senior Managing Director at Stonepeak. “ With its proven asset base and operating history, we believe that Clean Energy has discerned itself both within this space and relative to earlier stage verticals and other platforms pursuing the energy transition. We look forward to partnering with the Clean Energy platoon in supporting the company’s coming phase of growth. ”
Clean Energy is presently developing a portfolio of RNG product installations at dairies across the country. The first design is producing RNG in Texas and supplying it to the transportation request in Oregon through the state’s low carbon energies program. Multiple other installations are in the final stages of completion. The company is also expanding its RNG fueling structure, which presently includes over 600 stations across North America. This comes at a time when CumminsInc. is testing a new larger natural gas machine for heavy- duty exchanges with companies like Walmart, Werner, Knight Swift, and UPS. These lines are passing an advanced energy frugality with further necklace and power than former models, while at the same time dramatically reducing hothouse gas( GHG) and NOx emigrations compared to diesel. The 2024 marketable launch of the Cummins X15N machine is important anticipated by the assiduity.
RNG is a biogenic energy made entirely from organic waste at installations like dairy granges. Agriculture accounts for over 10 ofU.S. GHG emigrations and the transportation sector accounts for another 28, according to theU.S. Environmental Protection Agency. landing methane from ranch waste lowers these emigrations. RNG, produced by that captured methane and used as a transportation energy, significantly lowers GHG emigrations on a lifecycle base when compared to diesel. This allows RNG to be one of the only transportation energies to admit a negative carbon- intensity score by the California Air coffers Board grounded on the reduction of emigrations at the source and at the vehicle.
Summary of Financing Terms of the Loan
The term loan bears interest at9.5 per annum. During the first two times, Clean Energy may handpick to pay up to 75 of the interest in kind. The term loan matures on December 12, 2029 and may be repaid by Clean Energy at any time in an quantum that results in Stonepeak achieving the lesser of( i)11.5 internal rate of return and( ii)1.4 x multiple on invested capital, subject to certain exceptions. In connection with this sale, Clean Energy issued clearances to Stonepeak for the purchase of 10 million shares of common stock with an exercise price of$5.50 per share and 10 million shares of common stock with an exercise price of$6.50 per share. The clearances expire on June 15, 2032 and are exercisable at any time after December 12, 2025.
