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Raser Technologies Announces Third Geothermal Development Commitment Letter
Merrill Lynch to Finance Development and Provide Tax Equity Capital for Raser's 10 MW New Mexico Geothermal Power Plant
PROVO, Utah, Jul 21, 2008 -- Raser Technologies, Inc. (NYSE Arca:RZ) announced today that it has signed a commitment letter with Merrill Lynch for the project financing and tax equity funding for its planned 10 megawatt (MW) Lightning Dock geothermal power plant in Hidalgo County, New Mexico. The commitment letter provides for non-recourse debt financing and tax equity capital for Raser's first commercial geothermal project to be built in New Mexico. The tax equity capital will be provided by Merrill Lynch and/or by additional partners, at the option of Merrill Lynch, that can utilize the many tax benefits provided by the renewable energy project.
This is the third financing commitment announced under an agreement signed earlier this year that sets forth general terms relating to the structuring and financing of up to 155 MW of Raser's geothermal power projects. Merrill Lynch's commitment is subject to market conditions, due diligence, receipt of all necessary internal approvals by both Raser and Merrill Lynch, Merrill Lynch's satisfaction with the structure of the tax equity financing, the preparation and execution of definitive documentation and the satisfaction of certain other conditions.
The plant is designed to generate net 10 MW of electrical power with zero emissions and will use PureCycle(R) geothermal system technology from UTC Power, a United Technologies Corp. (UTX) company and is expected to be online in the first quarter of 2009. The power plant will be held in a special purpose entity and has an estimated useful life of approximately 35 years. The entity will be responsible for the debt service, all maintenance and operations expenses and various fees and distributions to Raser. Raser will act as engineering, procurement and construction contractor and will guarantee the completion of the construction of the project.
Roy Piskadlo, Managing Director for Merrill Lynch, said, "We are committed to the development of energy resources that are environmentally beneficial and to supporting Raser's continued progress in executing on its innovative development strategy."
"We are pleased to be working with Merrill Lynch to develop the first commercial geothermal power plant in New Mexico," said Brent M. Cook, Chief Executive Officer of Raser Technologies. "Merrill Lynch is showing bold leadership with their financial commitment to clean, baseload, renewable energy in the face of steeply increasing oil prices. We believe our pipeline of geothermal projects will help in reducing harmful carbon emissions while providing power to an area with increasing energy demands. We believe this additional agreement enhances our financial pipeline to provide the funding for the many projects we expect to complete."
About Raser Technologies
Raser (NYSE Arca:RZ) is a publicly-traded, environmentally focused technology licensing and development company operating in two business segments. Raser's Power Systems segment is seeking to develop clean, renewable geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology and Raser's Symetron(TM) technology developed internally by its Transportation and Industrial Technology segment. Raser's Transportation and Industrial Technology segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser's award-winning Symetron(TM) technology to improve the torque density and efficiency of the electric motors and drive systems used in electric and hybrid-electric vehicle powertrains and industrial applications. Further information on Raser may be found at: www.rasertech.com .
About Merrill Lynch
Merrill Lynch is one of the world's leading wealth management, capital markets and advisory companies with offices in 40 countries and territories and total client assets of almost $2 trillion. As an investment bank, it is a leading global trader and underwriter of securities and derivatives across a broad range of asset classes and serves as a strategic advisor to corporations, governments, institutions and individuals worldwide. Merrill Lynch owns approximately half of BlackRock, one of the world's largest publicly traded investment management companies with more than $1 trillion in assets under management. For more information on Merrill Lynch, please visit www.ml.com .
For more information contact:
Raser Technologies, Inc.
Richard Putnam, Investor Relations
801-765-1200
investorrelations@rasertech.com
or
Hayden Communications, Inc.
Cameron Donahue, 651-653-1854
cameron@haydenir.com
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements regarding: our beliefs about preliminary drilling results; our beliefs about the potential for geothermal power generation on our leased properties; our belief about our ability to exploit the available geothermal resources; our beliefs about the expected timing relating to the development of geothermal power projects; our beliefs about our ability to construct the power plants; our beliefs about the strength and enforceability of our agreements; our beliefs that the conditions necessary to fund the development of our geothermal projects can be satisfied; our beliefs about the economic benefits of contemplated financing structures; and our beliefs about the geothermal market generally. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the competitive environment and our ability to compete in the industry; our ability to adapt our technology for geothermal applications; our ability to secure necessary permits; the strength of our intellectual property; our ability to attract, train and retain key personnel; and such other risks as identified in our annual report on Form 10-Q for the quarter ended March 31, 2008, as filed with the Securities and Exchange Commission, and all subsequent filings.
All forward-looking statements in this press release are based on information available to us as of the date hereof, and we undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
InvestorIdeas.com Disclaimer: Issuers of press releases are solely responsible for the accuracy of the content.
SOURCE: Raser Technologies, Inc.
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