LONDON (ShareCast) - Wind turbine specialist Clipper Windpower (LSE: CWP.L - news) has raised £25m through a share issue after harsh weather conditions hit its production plans.
Extreme cold has resulted in a delay of approximately four weeks to its turbine drivetrain remediation plan expectations, Clipper said.
Clipper had already indicated that sorting out the problems with its turbines would cost between $7-10m in 2007.
As a result, it expects to incur additional remediation costs of $8 to $10m. Substantial completion of the drivetrain remediation and blade reinforcement program is still expected by Q308, the statement added.
To cover the additional working capital needed for the remediation costs, plus delays in completion of the 40-turbine turnkey construction contract it placed 4.69m shares at 537.5p, raising $50m. The placing was with institutional shareholders Clipper said.
In addition, Clipper has arranged a $60m bank-administered secured term credit facility to be funded by a customer and has secured the performance of certain Clipper obligations in order to facilitate approximately $85m of pre-delivery turbine payments from a second customer.
Clipper Capital and Generation, 72% owned by the company, has also received strong expressions of interest for a proposed capital raising, it says.
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