ONEROOF ENERGY GROUP, INC. OneRoof Energy, Inc. (OneRoof or the Company), a residential solar services provider and wholly owned subsidiary of OneRoof Energy Group, Inc. (OneRoof Energy) announced that the company and OneRoof Energy have issued a secured non-convertible note (the Note) in the principal amount of USD 1,500,000 to Black Coral Capital, LLC (Black Coral), a current investor in OneRoof Energy, in the final tranche of a previously announced financing with Black Coral in the aggregate principal amount of USD 4,500,000, funded in tranches. The note is issued on the same terms and is part of the same series as the notes previously announced in the press release dated September 24, 2015. The note is secured by the assets of the Company that are not otherwise pledged under project financings (the Available Assets).
The Available Assets are already pledged as security under the company's senior credit agreement with North Sky Alliance Fund and NewWorld Environmental Infrastructure L.P., as well as the company's subordinated convertible notes. The note has an interest rate of 16% per annum compounded monthly and computed on the actual number of days elapsed until all of the amounts due under the note has been paid in full and a year of 365 days. The company will pay interest on overdue principal and on overdue installments of interest, from the date due until such time as actually paid at the applicable rate plus 2% per annum.
The note also has a USD 500,000 prepayment penalty. The note requires the repayment of principal and interest and do not require ongoing servicing. Amounts outstanding at maturity will be repaid in cash generated from operations or through refinancing, depending on the terms available at the end of the term of the loan.
The proceeds from the note will be used for general working capital purposes, including general and administrative, IT development and investment in solar projects.
