Ormat buys U.S. power plants, to raise $150 mln

TEL AVIV -- - Israeli energy company Ormat Industries said recently it acquired ownership rights for two geothermic power plants in Nevada for $55 million.

In a statement to the Tel Aviv Stock Exchange, the company also said it would raise at least $150 million in the United States by offering a bond to institutional investors to finance the new deal and refinance power plants previously acquired.

Ormat said it would buy the ownership of the assets and electricity contracts for the Steamboat 2 and Steamboat 3 geothermic power plants in Nevada. It said it had paid $6 million immediately and the rest would be paid upon completion of the deal, expected by March.

The company will also buy the lessee rights to use the assets of the two power plants for an additional $30.65 million.

"With this acquisition we will now own approximately five power plant complexes (in the United States)," Ormat Chief Financial Officer Lisa Kidron told Reuters.

She added Ormat was choosing opportunities as they become available.

"We feel Ormat has the strength that allows it to make acquisitions for nice profits and cashflows in the future," she said.

The bond issue will be for fixed-interest notes exercisable in 2020, with interest and principle paid every six months. The interest rate for the bonds has yet to be set. The bonds will not be initially tradeable.