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29 April 2004 - Distributed Power Inc. an owner of distributed generation facilities providing on-site electric power and energy to industrial and commercial customers, announced Tuesday that it has reached tentative agreement with an investment fund for up to $7m of project financing.
The project financing will pay for the costs of acquiring and developing approximately 15 cogeneration facilities. The investment fund will advance 100 per cent of the $7m of financing, and become partners with Distributed Power in the ownership of the 15 projects. The project financing agreement is subject to standard conditions.
The investment fund, the Power Project Fund I, LLC, is a newly formed, Wall Street-based fund established to invest in distributed generation facilities. According to Brad Dotson, President of Distributed Power Inc., the project financing from the Power Project Fund I will pay for valuable assets. "With this project financing, DDPW is in position to produce significant future revenues and free cash flow," said Dotson. "The 15 projects that we expect to acquire and develop with the proceeds of this investment, located in California and New York, are expected to provide Distributed Power and their project investment partner with approximately $6.5m in annual gross consolidated revenues, and generate approximately $2.5m annually of free cash flow," said Dotson.
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