OneRoof Energy Group, Inc. has received credit lines totalling $16.7 million in additional financing from Black Coral Capital LLC and affiliates of the Hanwha Group, which are existing OneRoof Energy investors.
The financing includes about $6.5 million in credit for working capital, $4.4 million of which has already been funded. Secured by OneRoof’s assets, the loan has an annual interest of 12% and matures on December 31.
In addition, the California company received a project credit line of up to $6.9 million that it will use to fund obligations under its recently announced $58 million residential solar fund. Maturing on December 31, 2015, the project credit line has an interest rate of 9.25% a year and is secured by the company’s equity interest in the new residential solar fund.
OneRoof also signed a loan agreement with Hanwha International LLC to finance the construction of solar projects. This construction line, at 7% annual interest, replaces the existing development program agreement between the parties, which OneRoof previously used to fund construction expenses. The construction line covers the financing of approximately 175 solar projects, including projects currently under development.
OneRoof will pay back the construction line as it receives payment from tax equity or permanent financing sources, with all outstanding amounts maturing on April 30, 2015. The construction line is secured by the projects funded by the loan and the existing development program agreement as well as receivables generated from the sales of these projects.
"This new round of financing from Black Coral Capital and Hanwha Group affiliates supports our recently announced strategy to partner with leading home service providers, such as Elevate, and to lower OneRoof Energy’s customer acquisition costs," said OneRoof President and CEO David Field.
Field added that the company was seeing "substantial traction take place" and was realizing important growth opportunities with affiliate partner channels.
"This is resulting in more streamlined operational efficiencies throughout our organization. We believe our current approach positions us well for continued top line sales growth, which, when combined with healthy margin contributions from our new residential solar fund, helps us maintain our upward trajectory toward cash flow breakeven."