iSun – a solar service provider across residential, commercial, industrial & municipal, and utility-scale projects – secured a debt financing of $25 million as Senior Secured Convertible Notes Facility with a single investor.
The proceeds will be used to repay indebtedness and satisfy certain of the company’s financial obligations, working capital, and general corporate purposes. Alliance Global Partners acted as the sole placement agent for the financing, and Merritt & Merritt served as the Company’s legal counsel.
It includes an initial payment of $12.5 million at an interest rate of 5% per annum, while the other half remains subject to financing conditions. The initial conversion price is $2.66 per share compared to the stock’s last close of $2.24.
“We continue to see significant interest and enthusiasm for the products and services that iSun provides to our growing customer base,” said Jeffrey Peck, Chairman and Chief Executive Officer of iSun. “This debt facility validates our commitment to accelerating the transition to clean energy as we continue our fight against climate change while providing an opportunity to strengthen our balance sheet. As we grow our geographic footprint and establish new customer relationships, we believe our ability to drive value across all aspects of the solar life cycle will create meaningful, long-term value for our shareholders. “
According to Mercom’s recently announced 9M and Q3 2022 Solar Funding and M&A Report, solar debt financing activity in 9M 2022 totaled $8.3 billion in 48 deals, 42% lower than 9M 2021 when $14.2 billion was raised in 50 deals.
Pivot Energy, a solar provider that develops, finances, builds, owns, and manages solar and energy storage projects, recently secured $100 million in debt financing for its renewable energy projects from Fundamental Renewables, an investment arm of Fundamental Advisors. Fundamental Renewables will provide a $100 million revolving development loan facility to Pivot Energy, funding a diverse range of solar and storage projects across the U.S.