iSun has closed on an $8 million senior secured mortgage with Decathlon Capital Companions to totally refinance the prior senior secured convertible facility which had turn into dilutive.
The transaction carries a 48-month time period and is a straight debt instrument, avoiding any fairness dilution. Debt service funds start at a smaller preliminary stage and enhance over the course of the mortgage in a number of step-ups, monitoring the corporate’s income progress.
Funds will probably be utilized as follows:
- $6 million for the retirement of current Senior Secured Convertible Notes beforehand issued to Anson Funding Grasp Fund, LP and Anson East Grasp Fund, LP;
- $1.5 million to the steadiness sheet for working capital; and
- $0.5 million in transaction charges.
“It is a large milestone for iSun, and I wish to say thanks to our new financing companions at Decathlon and to our workers for all their arduous work in getting this throughout the end line,” says Jeffrey Peck, iSun’s chairman and CCO. “This debt facility validates our dedication to accelerating the transition to scrub vitality as we proceed our combat towards local weather change whereas offering a chance to strengthen our steadiness sheet.”
England & Firm acted as unique advisor and placement agent for the financing and Merritt & Merritt acted as the corporate’s authorized counsel.
