— Investments Are Focused on Supporting Clean Energy's Development of
Natural Gas Fueling Infrastructure in North America —
SEAL BEACH, Calif.--(BUSINESS WIRE)--
In a move to participate in the growing natural gas vehicle market
sector in the United States, three investment companies have agreed to
invest $150 million in Clean Energy Fuels Corp. (Nasdaq: CLNE), North
America's leading provider of natural gas fuel for transportation. The
investors are Springleaf Investments Pte. Ltd., a wholly-owned
subsidiary of Temasek Holdings Pte. Ltd., Lionfish Investments Pte Ltd,
an investment vehicle managed by Seatown Holdings International Pte.
Ltd, both based in Singapore, and Greenwich Asset Holding Ltd, a
wholly-owned subsidiary of RRJ Capital Master Fund I, L.P.
"This investment by Temasek, Seatown and RRJ demonstrates their
confidence in the opportunity for fueling natural gas vehicles as well
as in Clean Energy's position as the leader in growing this market,"
said Andrew J. Littlefair, President and CEO of Clean Energy. "Our
development program for fueling station-building is expanding rapidly
and we welcome the support provided by the funds."
"We are steadily adding stations serving fleets in the refuse, transit,
airport, municipal and regional trucking markets around the country as
well as through our recently announced build out of the backbone of
America's Natural Gas Highway for trucking," added Littlefair.
The $150-million investment is in the form of 7.50% convertible notes
due in 2016. The notes will be convertible into shares of Clean Energy
common stock at $15.00 per share. The closing of the investment is
scheduled to occur on or before August 30, 2011 and is subject to
customary conditions.
The use of proceeds is intended to support Clean Energy's fueling
infrastructure building program broadly, including the development,
construction and operation of liquefied natural gas (LNG) and compressed
natural gas (CNG) fueling stations and the related support, management,
maintenance and marketing of those stations, including the development,
construction and operation of offloading facilities, related production
assets and delivery trucks.
"We are honored to be a strategic partner of Clean Energy," said Richard
Ong, Chairman & CEO of RRJ Capital. "We like the long-term prospects of
the Company. Clean Energy has been demonstrating a strong track record
in natural gas fueling services in North America. It is well-positioned
to tap into the future growth opportunities in both the domestic market
and in international markets such as China and Southeast Asia."
Commenting on the announcement, Aubrey K. McClendon, Chief Executive
Officer of Chesapeake Energy Corporation (NYSE: CHK), which recently
invested $150 million in Clean Energy to support the natural gas highway
program, said, "We are pleased to have introduced Clean Energy to our
friends at Temasek, Seatown and RRJ, and we see this commitment by these
major global investors as being very beneficial to increasing the demand
for natural gas in North America and also to keeping Clean Energy in the
lead for providing natural gas vehicle fueling and deployment solutions
in North America."
Currently priced $1.50—$2.00 per gallon lower than diesel or gasoline
(depending upon local markets), the use of natural gas fuel reduces
costs significantly for vehicle and fleet owners, reduces greenhouse gas
emissions up to 30% in light-duty vehicles and 23% in medium to
heavy-duty vehicles. Additionally, natural gas is a secure North
American energy source with 98% of the natural gas consumed produced in
the U.S. and Canada.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities. The securities offered and
sold in the private placement have not been registered under the
Securities Act of 1933, as amended (the "Securities Act"), or any state
securities laws, and may not be offered or sold in the United States
absent registration, or an applicable exemption from registration under
the Securities Act and applicable state securities laws.
About Clean Energy Fuels — Clean Energy (Nasdaq: CLNE) is the
largest provider of natural gas fuel for transportation in North America
and a global leader in the expanding natural gas vehicle market. It has
operations in CNG and LNG vehicle fueling, construction and operation of
CNG and LNG fueling stations, biomethane production, vehicle conversion
and compressor technology.
Clean Energy fuels over 23,300 vehicles at 248 strategic locations
across the United States and Canada with a broad customer base in the
refuse, transit, trucking, shuttle, taxi, airport and municipal fleet
markets. Clean Energy del Peru, a joint venture, fuels vehicles and
provides CNG to commercial customers in Peru. We own (70%) and operate a
landfill gas facility in Dallas, Texas, that produces renewable natural
gas, or biomethane, for delivery in the nation's gas pipeline network,
and we plan to build a second facility in Michigan. We own and operate
LNG production plants in Willis, Texas and Boron, Calif. with combined
capacity of 260,000 LNG gallons per day and that are designed to expand
to 340,000 LNG gallons per day as demand increases. NorthStar, a wholly
owned subsidiary, is the recognized leader in LNG/LCNG (liquefied to
compressed natural gas) fueling system technologies and station
construction and operations. BAF Technologies, Inc., a wholly owned
subsidiary, is a leading provider of natural gas vehicle systems and
conversions for taxis, vans, pick-up trucks and shuttle buses. IMW
Industries, Ltd., a wholly owned subsidiary based in Canada, is a
leading supplier of compressed natural gas equipment for vehicle fueling
and industrial applications with more than 1,200 installations in 24
countries. www.cleanenergyfuels.com
Forward-Looking Statements — This news release contains 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 that
involve risks, uncertainties and assumptions, including statements about
the closing of the investment, the expected use of proceeds, the growth
of the natural gas vehicle market and demand for natural gas as a
vehicle fuel and the potential for a natural gas highway system. Actual
results and the timing of events could differ materially from those
anticipated in these forward-looking statements as a result of several
factors, including Clean Energy's performance of its obligations under
the investment agreements, permitting or other delays encountered during
the construction of natural gas fueling stations, including those
stations for the natural gas highway system, the performance,
availability and price of natural gas vehicles relative to gasoline and
diesel vehicles and the price per gallon of natural gas relative to
gasoline and diesel. The forward-looking statements made herein speak
only as of the date of this press release and, unless otherwise required
by law, the company undertakes no obligation to publicly update such
forward-looking statements to reflect subsequent events or
circumstances. Additionally, Clean Energy's Form 10-Q filed on August 8,
2011 with the SEC (www.sec.gov)
contains risk factors which may cause actual results to differ
materially from the forward-looking statements contained in this press
release.
Clean Energy Fuels Corp.
News Media:
Bruce Russell,
310-559-4955 x101
brussell@cleanenergyfuels.com
or
Investors:
Ina
McGuinness, 805-427-1372
ina@mcguinnessir.com
Source: Clean Energy Fuels Corp.
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