News

# AMSC Announces $50 Million Financing Plan June 30, 2003 by Jeff Shepard American Superconductor Corp. (AMSC, Westborough, MA) announced that it has signed non-binding letters of intent with three groups of investors to provide up to$50 million in financing. The financing is expected to be comprised of a five-year term loan of up to $30 million provided by a corporate finance company and several institutional investors. Three institutional investors have also signed a non-binding letter of intent to provide$10 million in the form of subordinated notes that are convertible into the company's common stock. In addition, AMSC has signed a non-binding letter of intent with a commercial bank that will provide up to \$10 million in the form of a working capital credit facility.

AMSC intends to use the proceeds of this financing for working capital, general corporate purposes and scale-up of pilot manufacturing for the company's second-generation (coated conductor composite), high-temperature superconductor wire. The financing is expected to close, subject to completion of definitive documentation and shareholder approval, in late August. The financing is expected to require shareholder approval, which will be sought in conjunction with AMSC's annual meeting of shareholders.