Alternus Clean Energy, Inc. (NASDAQ:ALCE), a Delaware-incorporated company specializing in electric and other services, has announced an extension of the waiver of certain financial covenants related to its green bonds. The bonds, issued by Solis, an indirect wholly-owned subsidiary of Alternus, were originally set to mature in 2024 with a coupon rate of 6.5% plus EURIBOR.
The bondholders have granted a series of temporary waivers for these covenants, with the latest extension now set until August 30, 2024. These covenants had been breached previously, leading to a series of extensions approved by the bondholders in 2023 and 2024. The details were disclosed in a notice filed on the Euronext Growth Oslo stock exchange, where the Solis Bonds are listed.
This extension provides Alternus with continued leeway to meet its financial obligations under the terms of the bonds. The company's management has expressed that the forward-looking statements in the notice are subject to numerous factors, including business and economic uncertainties and risks that may cause actual financial results to differ materially from expectations.
The bondholders have the option, as disclosed on February 26, 2024, to extend the bonds on a monthly basis up to November 29, 2024. This flexibility is indicative of the ongoing negotiations and financial management of Alternus as it navigates its obligations amidst the complex financial landscape of the clean energy sector.
In other recent news, Alternus Clean Energy, Inc. has announced definitive agreements to acquire an 80 MWp solar portfolio across the United States, a transaction valued at $60 million. This acquisition, which includes existing project debt, is expected to close by the end of the second quarter of 2024. The portfolio consists of 33 solar projects spread over eight states and is anticipated to generate an average annual revenue of $6.7 million and operating income of $5.1 million.
CEO Vincent Browne views this as a strategic step in the company's U.S. expansion, aligning with their goal to achieve 3GW of operating projects in the next five years. This move follows Alternus's strategic divestment of non-core projects in Poland and the Netherlands in late 2023 and nearly triples Alternus's operational projects in the U.S. to over 120MWp. The completion of the acquisition is contingent upon certain conditions, including the restructuring and assumption of the existing debt. These are the latest developments for Alternus Clean Energy.
InvestingPro Insights
As Alternus Clean Energy, Inc. (NASDAQ:ALCE) navigates its financial covenants and bondholder negotiations, investors are closely monitoring its market performance and financial health. According to InvestingPro data, ALCE's stock price has experienced significant volatility over the past year, with a 1-year total return of -97.1%, highlighting the challenges faced in the clean energy sector. Despite the sharp decline, the company has remained profitable over the last twelve months, which could suggest underlying operational resilience.
Two noteworthy InvestingPro Tips for Alternus include its tendency to trade with low price volatility and its weak gross profit margins. These insights could be particularly relevant for investors considering the company's financial strategy and market behavior. While ALCE's stock price often moves in the opposite direction of the market, its liquid assets exceed short-term obligations, indicating a degree of financial liquidity that may support its ongoing negotiations and obligations.
For a more comprehensive analysis and additional InvestingPro Tips, interested parties can explore the full suite of insights available on the InvestingPro platform, which includes a total of 7 tips for Alternus Clean Energy, Inc.
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