FuelCell Energy Reports New Material Agreement, Financial Obligation

TL;DR

**FCEL just took on new debt or a major contract; watch for details on its impact.**

AI Summary

FuelCell Energy, Inc. (FCEL) filed an 8-K on January 4, 2024, reporting an event on January 2, 2024, concerning a material definitive agreement and the creation of a direct financial obligation. This filing indicates the company has entered into a new financial arrangement, which could impact its balance sheet and future operations. For investors, this matters because new financial obligations can affect the company's liquidity, profitability, and overall risk profile, potentially influencing stock valuation.

Why It Matters

This filing signals a new financial commitment for FuelCell Energy, which could impact its cash flow and debt levels, directly affecting its financial health and investor confidence.

Risk Assessment

Risk Level: medium — The filing indicates a new financial obligation without specifying the amount or terms, creating uncertainty about its potential impact on the company's financial stability.

Analyst Insight

Investors should monitor FuelCell Energy's subsequent filings or announcements for specific details regarding the material definitive agreement and financial obligation, as these will clarify the financial impact and risk profile.

Key Players & Entities

• FUELCELL ENERGY INC (company) — the registrant filing the 8-K
• January 2, 2024 (date) — date of the earliest event reported
• January 4, 2024 (date) — date the 8-K was filed
• 0000886128 (company) — Central Index Key (CIK) for FuelCell Energy

Forward-Looking Statements

• FuelCell Energy will provide more details on the material definitive agreement and financial obligation in a subsequent filing or earnings call. (FUELCELL ENERGY INC) — high confidence, target: Q1 2024 earnings report

FAQ

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value per share FCEL The Nasdaq
• $80.5 million — oan facility in an amount not to exceed $80.5 million and a letter of credit facility in an a
• $6.5 million — dit facility in an amount not to exceed $6.5 million. Effective as of August 14, 2023, Bor

Filing Documents

• fcel-20240102x8k.htm (8-K) — 47KB
• fcel-20240102xex10d1.htm (EX-10.1) — 82KB
• 0001558370-24-000067.txt ( ) — 261KB
• fcel-20240102.xsd (EX-101.SCH) — 3KB
• fcel-20240102_lab.xml (EX-101.LAB) — 18KB
• fcel-20240102_pre.xml (EX-101.PRE) — 11KB
• fcel-20240102x8k_htm.xml (XML) — 5KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. Amendment No. 2 to Financing Agreement As previously reported by FuelCell Energy, Inc. (the "Company"), on May 19, 2023 (the "Effective Date"), FuelCell Energy Opco Finance 1, LLC ("Borrower"), a wholly owned subsidiary of FuelCell Energy Finance, LLC ("FCEF"), which, in turn, is a wholly owned subsidiary of the Company, entered into a Financing Agreement (as amended from time to time, the "Financing Agreement") with, by and among Investec Bank plc in its capacities as a lender ("Investec Lender"), administrative agent, and collateral agent; Investec, Inc. as coordinating lead arranger and sole bookrunner; Bank of Montreal (Chicago Branch) in its capacity as a lender ("BMO Lender") and as mandated lead arranger; and each of Liberty Bank, Amalgamated Bank and Connecticut Green Bank as lenders (collectively with Investec Lender and BMO Lender, the "Lenders") for a term loan facility in an amount not to exceed $80.5 million and a letter of credit facility in an amount not to exceed $6.5 million. Effective as of August 14, 2023, Borrower, Investec Bank plc in its capacities as a Lender and administrative agent, and Liberty Bank, Bank of Montreal, Amalgamated Bank, and Connecticut Green Bank, as Lenders, entered into Amendment No. 1 to the Financing Agreement dated as of August 11, 2023 ("Amendment No. 1"). Amendment No. 1 amends certain provisions of the Financing Agreement to clarify (i) the manner in which the debt service coverage ratio set forth in the Financing Agreement is to be applied during the period between the Effective Date and June 30, 2024; and (ii) that financial information required to be provided by Borrower to the Lenders relating to debt service coverage ratios be based on the calendar year rather than Borrower's fiscal year as the debt service coverage ratio covenants are applied and computed on calendar year time periods. Effective as of January 2, 2024, Borrower, Investec Bank plc in i

03

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. To the extent required by Item 2.03 of Form 8-K, the information in Item 1.01 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 2.03.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits: Exhibit No. Description 10.1 Amendment No. 2 to Financing Agreement, dated as of January 2, 2024, among FuelCell Energy Opco Finance 1, LLC (as Borrower), Investec Bank plc (as Administrative Agent and Lender), Liberty Bank (as Lender), Bank of Montreal (as Lender), Amalgamated Bank (as Lender), and Connecticut Green Bank (as Lender). 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FUELCELL ENERGY, INC. Date: January 4, 2024 By: /s/ Michael S. Bishop Michael S. Bishop Executive Vice President, Chief Financial Officer and Treasurer

View Full Filing

View this 8-K filing on SEC EDGAR