New York investment bank Cantor Fitzgerald is the lead agent for the $25 million share offering of geothermal developer Raser Technologies. An official at the Provo, Utah-based company tells G.E.R. that it’s never worked with Cantor before.
Cantor’s pricing was competitive, the executive says. Although, the clincher for Raser might have been the bank’s experience with the type of offering Raser is doing, known as a controlled equity offering whereby companies agree to sell a specified number of common shares in at-the-market transactions. Cantor Managing Director Jeff Lumby, who is listed in Raser’s 8K, launched Cantor’s dedicated controlled equity group in 2001.
Raser, one of the country’s largest geothermal developer, will use proceeds from the share issuance to support development and construction of the 15-megawatt Lightning Dock project in New Mexico. We’re told that the company has secured a driller and expects to start construction in the next few weeks.
Lightning Dock is slated to start operating in 2011 and is backed by a 20-year power purchase agreement with the Salt River Project Agricultural Improvement and Power District (SRP), a utility district in neighboring Arizona.
For long-term financing, besides the equity issuance, Raser is also considering applying for a loan guarantee, the company executive says, declining to provide specifics on the dollar amount it would seek.
Earlier this year, Raser secured additional development capital from Evergreen Clean Energy, a newly-formed Utah-based investment fund in exchange for equity stakes in some of the projects that make up the company’s 100-megawatt project pipeline. It also recently scored a $32.9 million U.S. Treasury direct cash grant for its five megawatts Thermo Number 1, project.
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