San Diego Business Journal

Two investment firms arrange $20 million loan facility for SD’s OneRoof Energy

OneRoof Energy Inc., a residential solar services provider, announced a loan agreement with North Sky Capital’s Alliance Fund II and will provide the company a $20 million loan facility, according to a news release.

A loan facility is a credit line that businesses can use to finance projects or for other purposes, but gives the borrower flexibility to decide when and how often to withdraw from the loan and at what intervals.

The agreement, arranged by GoldenSet Capital, one of the advisors of the fund, will allow OneRoof to draw loan amounts from a certain borrowing base and has other funding conditions. Proceeds from the facility will be used for solar project investments and general working capital purposes.

Undrawn amounts will face a 0.50 percent per annum fee. Principal and interest will mature in 2.5 years and interest will sit at a fixed rate of 15 percent per annum, compounding monthly.

A second lien on the assets of the company (not otherwise under project financings) secure the facility as well as the first lien in the company’s sponsor equity interest in its next tax equity fund that will be senior to the company’s convertible and non-convertible notes in each asset class, according to OneRoof.

OneRoof Energy, Inc. is a subsidiary of OneRoof Energy Group, Inc. (TSXV:ON).