CHARLOTTE, N.C., Jan. 5, 2017 /PRNewswire/ -- Blue Sphere Corporation (OTCQB: BLSP) (the "Company", "Blue Sphere", "we", "our" or "us"), an international Independent Power Producer (IPP) that is globally active in the clean energy production and waste to energy markets, released today an update regarding the credit facilities that were assumed when the Company acquired four operating biogas facilities in Italy at the end of 2015. As previously announced, Blue Sphere acquired 100% of the stock of Agricerere, S.R. L., Agrielektra, S.r.L., Agrisorse, S.r.L. and Gefa, S.r.L (collectively, the "SPVs"). Individually, each of the four SPVs operates a fully operational biogas facility that generates one megawatt of electricity annually and the power is sold to Gestore del Servizi Energetici GSE, S.p.A., a major reseller of electric power in Italy, pursuant to a power purchase agreement that runs through December 31, 2027.
Blue Sphere has achieved key milestones with regards to the financing package for the four SPVs that we own in Italy. Banka IMI has agreed to new terms for the loans that were assumed when Blue Sphere completed the acquisition of the four SPVs from Grouppo Waste Italia, S.p.A (formerly Kenixia, S.p.A).
Banka IMI, the investment banking subsidiary of Intesa Sanpaolo Bank (the "Bank") has officially approved the Framework EBITDA Guarantee Agreement between Blue Sphere and Austep, a program pursuant to which Austep performs or will perform technical analyses of operating anaerobic digestion facilities in Italy, including the SPVs, in exchange for a percentage of each such facilities' EBITDA (the "EBITDA Guarantee Program"). This is important to Blue Sphere because the Bank now recognizes the financial structure of the EBITDA Guarantee Program as a "bankable" option for future project acquisitions. The Bank has also approved a Management Services Agreement between Blue Sphere and each of the SVPs equal to 12% of the annual EBITDA. In addition, the Bank has provided a new VAT line of credit equal to €300,000 per SVP, and has extended our existing VAT line of credit for one year. The Bank has also canceled the requirement for Blue Sphere to fund a DSRA (debt service reserve account) deposit totaling €1,100,000, and canceled the minimum cash requirement of €200,000 per account.
"We am very excited about accomplishing this important milestone. Italy remains an important market for Blue Sphere and as our financial terms improve, we anticipate being able to achieve even more success in the Italian market. Our team has worked very hard to make these acquisitions as successful as possible. This is a great example of our long-term commitment to our assets. We are always looking to improve and work hard long after the transactions have been completed," said Shlomi Palas, the Blue Sphere CEO.
About Blue Sphere Corporation
Blue Sphere Corporation is a diversified independent power producer that develops, owns, and operates clean-tech, waste-to-energy facilities in the United States and abroad. The Company primarily converts organic waste into electricity, but also has the ability to generate heat, natural gas and organic byproducts through various technologies.
Blue Sphere facilities eliminate waste that would normally be disposed in landfills, reduce greenhouse gas emissions and protect water quality, helping to solve important global environmental issues. Blue Sphere is headquartered in Charlotte, North Carolina and has operations in the United States, Israel and Europe. For further information about Blue Sphere, please visit the Company's website: www.bluespherecorporate.com.
This press release contains certain forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995), which are subject to risks and uncertainties and may change at any time. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties and other factors including, without limitation, (i) uncertainties regarding general economic and market conditions, (ii) uncertainties regarding changes in the clean tech sector, (iii) uncertainties regarding implementation of the Company's business strategy, and (iv) other risk factors as outlined in the Company's periodic reports, as filed with the U.S. Securities and Exchange Commission. As such, there is no assurance that the initiatives described in this press release will be successfully implemented or meet expectations. Forward-looking statements in this document speak only as of the date on which such statements were made, and we undertake no obligation to update any such statements that may become untrue because of subsequent events.
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SOURCE Blue Sphere Corporation