Fluence Secures US$20 Million Working Capital and Project Loan Facility
Melbourne, New York -- Fluence Corporation Limited (ASX: FLC) is pleased to announce that it has entered into a loan agreement with an affiliate of Upwell Water LLC (“Upwell”) to provide an initial US$20 million non-dilutive finance facility (the “Upwell Facility”). The Upwell Facility can be upsized to as much as US$50 million at Fluence’s request and at Upwell’s discretion.
The Upwell Facility replaces the Company’s current project loan facility with Generate Capital and comprises a general working capital facility together with project sub-facilities. Approximately US$5 million of the proceeds will be drawn to fully repay the Generate Capital project loan facility and to fund BOOT projects currently under construction. The remaining approximately US$15 million facility is available for general working capital needs. The Upwell Facility better aligns with Fluence’s continued ambition to transition towards a more capital light business model and supports the growth of Fluence’s MABR and Smart Products Solutions businesses.
The working capital portion of the Upwell Facility has an initial three-year term, while the project subfacility loans will have maturities aligned with the underlying BOOT project revenue contracts. The Upwell Facility incorporates market terms, including interest customary for financing facilities of this type. The loans will be secured by collateral in the form of Company assets, including unrestricted cash.
Commenting on this agreement with Fluence, Upwell CEO Tamin Pechet said: “We are excited to support Fluence’s continued growth, and to enable rapid deployment of proven treatment solutions to Fluence’s current and future customers.”
Fluence Managing Director & CEO Henry Charrabé commented: “The new Upwell Facility supports both working capital and project finance, affording Fluence a great deal of flexibility to fund near-term growth opportunities and strengthens our financial capabilities. Working capital proceeds will be utilised to support the growth trajectory of MABR and other Smart Products Solutions. We are delighted to have Upwell as our new financial partner, and we are confident they will provide excellent support as we continue to solidify Fluence’s position as a global leader in decentralised water and wastewater treatment solutions. We also want to thank Generate Capital for their partnership over the last few years and wish them continued success.”
About Fluence Corporation Limited (ASX: FLC)
Fluence is a leader in the decentralized water, wastewater and reuse treatment markets, with its Smart Products Solutions, including Aspiral™, NIROBOX™ and SUBRE. Fluence offers an integrated range of services across the complete water cycle, from early stage evaluation, through design and delivery to ongoing support and optimization of water related assets, as well as Build Own Operate Transfer (BOOT) and other recurring revenue solutions. With established operations in North America, South America, the Middle East, Europe and China, Fluence has experience operating in over 70 countries worldwide and enables businesses and communities worldwide to maximize their water resources.
About Upwell Water LLC
Upwell Water delivers capital solutions to the water industry, enabling a sustainable water future. Headquartered in San Francisco, the firm’s team, comprised of water industry and capital markets executives, partners with providers and end-users of water solutions. Upwell Water intends to invest $1 billion in water-related businesses and assets.