Of the approximately US$16.7 million of financing, approximately US$6.5 million will be provided in the form of a working capital line of credit. To date, US$4.4 million of the US$6.5 million working capital credit has already been funded. This facility bears interest at 12 percent per annum and matures on December 31, 2014. The facility is secured by the assets of OneRoof Energy, Inc. (“OneRoof Energy“), OneRoof Energy Group’s wholly owned subsidiary, not otherwise pledged pursuant to other facilities.
The lenders under the working capital line of credit will be issued bonus warrants to purchase common shares of OneRoof Energy Group equal to 25 percent of the amount of the working capital line of credit funded, divided by the exercise price per share of the bonus warrants. These bonus warrants are non-transferable and expire if not exercised on or prior to December 31, 2014, and will be issued pro rata with funding draws under the working capital line of credit.
In addition to the working capital line of credit, OneRoof Energy entered into a project line of credit with the lenders. This line of credit provides up to US$6.9 million of funding that will be used by OneRoof Energy to fund its obligations under its recently announced US$58 million residential solar fund. The project line of credit bears interest at 9.25 percent per annum, matures on December 31, 2015, and is secured by OneRoof Energy’s equity interest in the new residential solar fund.
Finally, OneRoof Energy executed a loan agreement with Hanwha International LLC for the financing of the construction of solar projects. This construction line replaces the existing development program agreement between the parties, which OneRoof Energy previously utilized to fund construction expenses. The construction line covers the financing of approximately 175 solar projects, including projects currently under development. The construction line bears interest at 7 percent per annum and is repaid as OneRoof Energy receives payment from its tax equity or permanent financing sources, with all outstanding amounts maturing on April 30, 2015. The construction line is secured by the assets of the projects funded by the loan and the existing development program agreement, as well as receivables generated from the sales of these projects to third parties.
“This new round of financing from Black Coral Capital and Hanwha Group affiliates supports our recently announced strategy to partner with leading home service providers, such as Elevate, and to lower OneRoof Energy’s customer acquisition costs,” stated David Field, president and chief executive officer of OneRoof Energy Group.
We are seeing substantial traction take place and are realizing important growth opportunities with affiliate partner channels. This is resulting in more streamlined operational efficiencies throughout our organization. We believe our current approach positions us well for continued top line sales growth, which, when combined with healthy margin contributions from our new residential solar fund, helps us maintain our upward trajectory toward cash flow breakeven.
Funding under these facilities is subject to certain conditions, which are expected to be satisfied within the coming week.
About OneRoof Energy
OneRoof Energy Group, operating through its wholly-owned subsidiary, OneRoof Energy, is a complete solar services provider offering homeowners everything from traditional and lease financing, PPAs, solar system design and installation project management to ongoing system monitoring and maintenance services. Utilizing its technology-rich, solar leasing fulfillment platform, OneRoof Energy is partnering with traditional energy retailers and home services companies of all sizes to offer residential customers affordable, renewable energy choices. With its unique end-to-end energy solution, the Company has created multiple touch points to offer cost-saving energy products and services that create a seamless experience for the homeowner while fulfilling their unique energy needs. Currently, OneRoof Energy serves residential customers in five states including Arizona, California, Hawaii, Massachusetts and New York with plans for additional expansion.
For more information, visit www.oneroofenergy.com.