Issuer Free Writing Prospectus
Filed Pursuant to Rule 433
Registration Statement on Form S-3 No. 333-152807
SUMMARY OF PROPOSED KEY TERMS
October 29, 2008
| Issuer: | Environmental Power Corporation (NASDAQ: EPG) | |||
| Securities Offered: | Convertible Notes due January 1, 2014 (the “Notes”) | |||
| Interest Rate: | 13% per annum | |||
| Conversion Security: | Common Stock, $0.01 per share | |||
| Minimum Conversion Price: | $5.40 per share | |||
| Conversion Price: |
Conversion Date |
Greater of Minimum Conversion Price and: | ||
| From the Issue Date through December 31, 2009 | 85% of market price | |||
| From January 1, 2010 through December 31, 2010 | 87.5% of market price | |||
| From January 1, 2011 through December 31, 2011 | 90% of market price | |||
| From January 1, 2012 through December 31, 2012 | 92.5% of market price | |||
| From January 1, 2013 through December 31, 2013 | 95% of market price | |||
| Minimum Offering: | $10,000,000 | |||
| Anticipated Maximum Offering: | $25,000,000 (subject to increase) | |||
| Offering Price: | Par | |||
| Other Terms: | The Notes are subject to optional and mandatory redemption and mandatory conversion in certain circumstances, as well as other terms more fully described in the preliminary Prospectus Supplement relating to this offering. | |||
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively the issuer and the underwriter will arrange to send you the prospectus if you request it by calling (888) 884-8339.