Retailer Parent Reports Closing of $1.6M in Initial Funding, as Tranche 1 of $10M Debenture Facility
January 15,2019
Zenergy Brands, Inc., the parent of Enertrade Electric, announced it has closed a $10 Million Debenture facility with TCA Global Credit Master Fund, LP (“TCA”)
Zenergy offers various energy management and smart controls/building automation solutions. It recently sold its book of retail electric customers, but said in December 2018 that it plans to re-enter the retail energy market this year (see EnergyChoiceMatters.com's exclusive first report here)
After executing the initial Term Sheet on August 29, 2018, and several months of due diligence, Zenergy announced the closing of this transaction, effective December 26, 2018.
With the closing, Zenergy, "believes that it is now in a position to effectively realize its vision to converge responsible energy use and management, smart controls/building automation, and energy conservation and efficiency under the Zenergy brand."
Per the transaction, TCA has provided Zenergy with the initial tranche of $1.6 Million and will fund additional tranches up to $10 Million as the company executes new revenue-generating contracts -- its "Zero Cost" energy saving and efficiency program and other related services, subject to TCA’s sole discretion. Zenergy is forecasting that it will acquire several new contracts in Q1 and Q2 of 2019, and intends to use the Debenture facility to fulfill its obligations under these anticipated Managed Energy Services Agreements.
Zenergy CEO, Mr. Alex Rodriguez, commented, "This is a monumental step in our lifecycle – we’ve got a truly innovative market-relevant offering in the Zero Cost Program. We believe that this debenture facility can allow us to grow the program effectively throughout 2019. I definitely view this event as the closing of one chapter and the opening of a new one for Zenergy."
"Another characteristic of the transaction is the customized repayment schedule, which is a hybrid model that starts with interest-only payments for the first six months and then ramps up over the term, with the final six months representing more substantial balloon-style payments. The respective payments are due in monthly installments beginning on January 26, 2019, and ending on June 26, 2021," Zenergy said