WESTBOROUGH, Mass., July 7, 2003 — American Superconductor Corp. announced that it has signed non-binding letters of intent with three groups of investors to provide up to $50 million in financing.
The financing is expected to be comprised of a five-year term loan of up to $30 million provided by a corporate finance company and several institutional investors. Three institutional investors have also signed a non-binding letter of intent to provide $10 million in the form of subordinated notes that are convertible into the company’s common stock.
In addition, AMSC has signed a non-binding letter of intent with a commercial bank that will provide up to $10 million in the form of a working capital credit facility. TM Capital Corp. is serving as financial advisor to AMSC on the transactions.
AMSC intends to use the proceeds of this financing for working capital, general corporate purposes and scale-up of pilot manufacturing for the company’s second generation (coated conductor composite) high temperature superconductor (HTS) wire. The financing is expected to close, subject to completion of definitive documentation and shareholder approval, in late August.
The financing is expected to require shareholder approval, which will be sought in conjunction with AMSC’s annual meeting of shareholders. The date on which the Proxy Statement will be issued, as well as the date of the company’s shareholder meeting, will be determined at a later time.
About American Superconductor Corporation (Nasdaq: AMSC)
American Superconductor develops solutions and manufactures products to dramatically improve the cost, efficiency and reliability of systems that generate, deliver and use electric power. The company has a vertically integrated portfolio of products supported by more than 500 patents, patent applications and licenses covering technologies fundamental to Revolutionizing the Way the World Uses Electricityà¢â€ž-.
Products from AMSC include High Temperature Superconductor wire for electric power, transportation, medical and industrial processing applications; HTS motors and generators for ship propulsion; and advanced power electronic systems that ensure the quality and reliability of electricity for residential, commercial and industrial customers. More information is available at www.amsuper.com.
American Superconductor and Revolutionizing the Way the World Uses Electricity are trademarks of American Superconductor Corporation. All other trademarks are the property of their respective owners.