NEW YORK (TheStreet) -- Shares of FuelCell Energy Inc. (FCEL) are higher by 5.09% to $2.48 on heavy volume in mid-morning trading on Thursday, after the company announced it entered into a strategic financing agreement with NRG Energy Inc. (NRG).
Under the terms of the agreement NGR Energy will purchase 14.6 million shares of FuelCell's common stock for $2.39 per share, or $35 million, claiming a 6% stake in the company.
In exchange NRG will establish a new $40 million revolving construction and term loan facility for FuelCell to use for project development, the company said.
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"These agreements strengthen the Company's liquidity position and are expected to accelerate deployment of multi-megawatt fuel cell projects in the U.S.," said FuelCell CEO Chip Bottone.
Shares of NRG Energy are down by -0.06% to $30.80 this morning.
Separately, TheStreet Ratings team rates FUELCELL ENERGY INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate FUELCELL ENERGY INC (FCEL) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and poor profit margins."