| Title | Financing Geothermal Projects in the Capital Markets |
|---|---|
| Authors | Raviv, Rany; Lavi, Smadar; Sadan, Eddie |
| Year | 2006 |
| Conference | Geothermal Resources Council Transactions |
| Keywords | Finance; Project finance, capital markets, developers, senior secured notes, 144A |
| Abstract | Recent experience shows that the capital markets are very receptive to the financing of geothermal projects. One example is the transaction which Ormat has successfully completed in December of 2005 - the financing of Orcal Geothermal Inc. (“Orcal”), by way of a senior secured notes offering under rule 144A of the US Securities Law, which allows the sale of bonds to a limited number of qualified investors without a full SEC registration. Orcal owns and operates three geothermal power projects, located in Imperial County in Southern California: Heber 1, Heber 2 and the Gould projects. This offering was a re-financing of a bank loan from November 2003, when Orcal acquired Heber 1 and Heber 2 geothermal projects from the then bankrupt Covanta Energy. |