Orbital Energy Group Announces Amendment to the Front Line Power Construction Sellers' Notes

Rhea-AI Summary

Orbital Energy Group (NASDAQ: OEG) has announced a deal with Front Line Power Construction to defer $20 million in remaining payments until December 31, 2022. This agreement is expected to enhance the company's ability to execute its infrastructure strategy and alleviate capital constraints. CEO Jim O'Neil acknowledged the Front Line sellers' flexibility amid market challenges, emphasizing the importance of this collaboration in navigating the robust electric power infrastructure sector.

Positive

• Agreement to defer $20 million payment until December 31, 2022, providing increased financial flexibility.
• Enhances Orbital's capacity to execute its infrastructure strategy and meet financial expectations for 2022.

Negative

• None.

HOUSTON, April 29, 2022 /PRNewswire/ -- Orbital Energy Group, Inc. (NASDAQ: OEG) ("Orbital") has reached an agreement in principle with the Front Line Power Construction, LLC ("Front Line") Sellers to pay $20,000,000 in exchange for an extension of the remaining sums due under the recently announced Amendment No. 2 until December 31, 2022.

"This amendment greatly enhances the company's ability to execute on its infrastructure strategy and reduces capital constraints to achieve our 2022 financial expectations," said Jim O'Neil, Vice Chairman and CEO of Orbital. "We thank the Front Line sellers for accommodating our request to defer additional payment of the seller's note. Their sophistication of both emerging challenges in the capital markets and the increasing opportunity to provide services in a very robust electric power infrastructure market, along with their commitment to a successful outcome for both OEG and Front Line are recognized and appreciated – This is yet another confirmation and example of the commitment of Front Line's leadership to the long term success of OEG." 

About Orbital Energy Group

Orbital Energy Group, Inc. (Nasdaq: OEG) is a diversified infrastructure services platform, providing engineering, design, construction, and maintenance services to customers in the electric power, telecommunications, and renewable industries.

Orbital Energy Group is dedicated to maximizing shareholder value, by striving to exceed our customers' expectations, building a diverse workforce, and making a positive difference in the lives of our employees and the communities in which we operate, and contributing to reducing the carbon footprint through the services we provide.

For more information please visit: www.orbitalenergygroup.com

Forward Looking Statements

This press release contains certain 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 and Private Securities Litigation Reform Act, as amended, including those relating to the expected use of proceeds. These statements may be identified by the use of forward-looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential," "predict," "project," "should," "would" and similar expressions and the negatives of those terms. These statements relate to future events and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance, or achievements to be materially different from any results, performance or achievements expressed or implied by the forward-looking statements. Such factors include the risk factors set forth in the Company's filings with the SEC, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2021, its periodic reports on Form 10-Q, and its Current Reports on Form 8-K filed in 2022, as well as the risks identified in the shelf registration statement and the prospectus supplement relating to the offering. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this press release. Orbital undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Investor Relations:
Three Part Advisors
John Beisler or Steven Hooser
817-310-8776
investors@orbitalenergygroup.com 

View original content to download multimedia:https://www.prnewswire.com/news-releases/orbital-energy-group-announces-amendment-to-the-front-line-power-construction-sellers-notes-301536102.html

SOURCE Orbital Energy Group, Inc.

FAQ

What is the recent deal Orbital Energy Group made regarding payment deferral?

Orbital Energy Group reached an agreement to defer $20 million in payments to Front Line Power Construction until December 31, 2022.

How does the payment deferral impact Orbital Energy Group's financial strategy?

The payment deferral enhances Orbital's ability to execute its infrastructure strategy and alleviates capital constraints.

When is the new deadline for the deferred payment to Front Line Power Construction?

The new deadline for the deferred payment is December 31, 2022.

Who is the CEO of Orbital Energy Group and what did he say about the deal?

Jim O'Neil, the CEO, stated that the amendment significantly enhances the company's infrastructure execution capabilities.