Babcock Power Announces New Accounts Receivable Securitization Facility

Business Wire, Jan 17, 2008

DANVERS, Mass. -- Babcock Power Inc. (BPI), a privately held Delaware corporation, announced today that it has executed an agreement for a new $100 million three year accounts receivable securitization. The new securitization will augment its existing credit facility and increase BPI's borrowing capacity to $195 million. This new facility further demonstrates BPI's continued growing financial strength and ongoing commitment to the power generation industry.

BPI's President and CEO James F. Wood commented, "This new securitization further enhances BPI's market position and will allow it to capitalize on its broad range of products and services for fossil, nuclear, cogeneration, combined cycle, biomass and waste-to-energy plants. This will also permit the company to continue expanding its leadership role in the air quality control system market and provide additional funds for the overall growth of BPI through acquisition."

"This new agreement reflects BPI's markedly continued ongoing improvement in its balance sheet and liquidity. Moreover, this securitization will provide BPI with increased capacity and financial flexibility at a reduced cost so that BPI can support its operations and revenue growth. In addition, BPI will be able to seek additional business and opportunities in all its served markets," commented Anthony Brandano, BPI's CFO.

PNC Bank, N.A. structured and arranged the transaction. Funding is provided by Market Street Funding LLC, the A-1/P-1 multi-seller commercial paper conduit administered by PNC Bank, N.A. PNC Bank is a subsidiary of The PNC Financial Services Group (NYSE: PNC). PNC is one of the nation's largest financial services companies with assets of over $130 billion.

Babcock Power Inc., through its subsidiaries, is one of the world's leading suppliers of technology, equipment, and services to the power generation industry. Babcock Power subsidiary companies include; Vogt Power International (Louisville, KY), Thermal Engineering International (USA) Inc. (Santa Fe Springs, CA), Babcock Power Environmental, Riley Power Inc. and Babcock Power Services (Worcester, MA), Boiler Tube Company of America (Lyman, SC), and TEi Construction Services, Inc. (Duncan, SC).