iSun Inc. Secures $8.0 million Term Loan

Rhea-AI Summary

iSun, Inc. (NASDAQ: ISUN) announced the closing of an $8.0 million senior secured loan with Decathlon Capital Partners to refinance the prior senior secured convertible facility, avoiding equity dilution. The debt service payments track the Company’s revenue growth, making it an ideal funding instrument at this stage of the company’s life. The funds will be utilized for the retirement of existing Senior Secured Convertible Notes, working capital, and transaction fees.

Positive

• Refinancing of the prior senior secured convertible facility to avoid equity dilution
• Debt service payments tracking the Company’s revenue growth
• Ideal funding instrument at this stage of the company’s life

Negative

• Potential risks associated with the new debt instrument

$8.0 million debt instrument with 48-month amortization

Retire existing Senior Secured Convertible Notes

WILLISTON, Vt.--(BUSINESS WIRE)-- iSun, Inc. (NASDAQ: ISUN) (the "Company," or "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 $8.0 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

“This is a huge milestone for iSun, and I want to say ‘thank you’ to our new financing partners at Decathlon and to our employees for all their hard work in getting this across the finish line,” 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. After careful consideration of all available financing options, the terms negotiated with Decathlon were the most favorable for the iSun shareholders. As we continue to 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.”

England & Company acted as exclusive advisor and placement agent for the financing and Merritt & Merritt acted as the Company’s legal counsel.

About iSun Inc.

Since 1972, iSun has accelerated the adoption of innovations in energy transition and electrification technology. iSun has been the trusted service provider to Fortune 500 companies for decades and has installed clean rooms, fiber optic cables, flight simulators, and over 600 megawatts of solar systems. The Company currently provides a comprehensive suite of solar services across residential, commercial, industrial & municipal, and utility scale projects and provides solar electric vehicle charging solutions for both grid-tied and battery backed solar EV charging systems. iSun believes that the transition to clean, renewable solar energy is the most important investment to make today and is focused on profitable growth opportunities. Please visit www.isunenergy.com for additional information.

Forward Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, effective tax rate, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.

The forward-looking statements included in this press release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the risk factors described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.

All forward-looking statements included in this press release are based on information currently available to us, and we assume no obligation to update any forward-looking statement except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231214754011/en/

IR Contact:

IR@isunenergy.com

Source: iSun, Inc.

What did iSun, Inc. (ISUN) announce?

iSun, Inc. (NASDAQ: ISUN) announced the closing of an $8.0 million senior secured loan with Decathlon Capital Partners.

What is the purpose of the senior secured loan?

The purpose of the senior secured loan is to refinance in full the prior senior secured convertible facility which had become overly dilutive.

Who is the financing partner for iSun, Inc.?

Decathlon Capital Partners is the financing partner for iSun, Inc.

How will the funds be utilized?

The funds will be utilized for the retirement of existing Senior Secured Convertible Notes, working capital, and transaction fees.

What makes this funding instrument ideal for iSun?

The 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, making it an ideal funding instrument at this stage of the company’s life.