iSun, Inc. (NASDAQ: ISUN) shares poked up Thursday. iSun, a leading solar energy and clean mobility infrastructure company with 50-years of experience accelerating the adoption of innovative electrical technologies, today announced the closing of an $8-million senior secured loan with Decathlon Capital Partners, the country’s largest revenue-based funding investor, to refinance in full the prior senior secured convertible facility which had become overly dilutive.
The transaction, which carries a 48-month term, is a straight debt instrument, thus avoiding any equity dilution. Debt service payments begin at a smaller initial level and increase over the course of the loan in several step-ups, tracking the Company’s revenue growth. Along with Decathlon’s collaborative approach and covenant-light terms, these features make this an ideal funding instrument for iSun at this stage of the company’s life.
Funds will be utilized as follows: $6.0 million for the retirement of existing Senior Secured Convertible Notes previously issued to Anson Investment Master Fund, LP and Anson East Master Fund, LP; $1.5 million to the balance sheet for working capital; $0.5 million in transaction fees.
Said CEO Jeffrey Peck. “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. After careful consideration of all available financing options, the terms negotiated with Decathlon were the most favorable for the iSun shareholders.”
ISUN shares took on 1.6 cents, or 8.9%, to 20 cents.
