“We are looking forward to our new banking relationship with Bridge Bank. Not only will this new credit facility provide us with an increase in borrowing availability compared to our old facility, but the overall total cost of capital of the facility will also be reduced,” said Jayme Brooks, Capstone’s CFO and chief accounting officer.
The credit agreements with Western Alliance Bank are supported by the Export-Import Bank of the U.S. Under the terms of the agreements, Capstone may borrow up to $12 million on a revolving basis depending on the amount of the company’s eligible inventory and accounts receivable.
The credit agreements are for a two-year period ending June 2, 2019.
“The move to Bridge Bank is yet another example of Capstone’s continued war on costs as our operating expenses are down dramatically from last year and are lower than other similar sized companies in our clean tech space,” said Darren Jamison, Capstone’s president and CEO.
Los Angeles-based Capstone Turbine is a producer of low-emission microturbine systems.