OneRoof Energy Inc., a residential solar services provider and wholly owned subsidiary of OneRoof Energy Group, Inc. announced that the company and OneRoof Energy have agreed to a financing in the total principal amount of $2 million. The $2 million consists of a secured non-convertible note issued to Black Coral Capital LLC , a current investor in OneRoof Energy. The proceeds from the notes will be used for general working capital purposes, including general and administrative, IT development and investment in solar projects.
Utilizing its technology-rich, solar leasing fulfillment platform, OneRoof is partnering with traditional residential solar originators, 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 serves residential customers in nine states including Arizona, California, Hawaii, Massachusetts, New Jersey, Maryland, Pennsylvania, Connecticut and New York with plans for additional expansion.
The note is secured by the assets of the company that are not otherwise pledged under project financings or available assets). The available assets are already pledged as security under the company’s senior credit agreements, as well as the agreements governing the company’s subordinated convertible notes. The notes are subject to substantially the same terms and conditions as the company’s outstanding subordinated convertible notes, with the following differences:
(1) the note is not convertible into equity;
(2) the note bears an interest rate of 16% per annum compounded monthly; and
(3) any voluntary prepayment of any installment of the note requires the payment of a penalty equal to one-ninth (1/9) of the principal amount of the installment of the loan, but no prepayment is required by the note or permitted by the senior credit agreement.
The note is secured on the available assets under an amended and restated security and pledge agreement dated Oct. 21, 2013, as amended, between OneRoof Energy, the company and OneRoof Energy’s existing investors. Amounts outstanding at maturity will be repaid in cash generated from operations or through refinancing, depending on the terms available at the end of the term of the notes.
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