September 24, 2017 1:49 PM ET

Electronic Equipment, Instruments and Components

Company Overview of Sungevity, Inc.

Company Overview

Sungevity, Inc. sells and installs solar panels and solar power systems for residential markets and businesses globally. It has a strategic partnership with Viridian Energy. The company was incorporated in 2006 and is based in Oakland, California. It has locations in California, Colorado, Connecticut, Delaware, District of Columbia, Maryland, Massachusetts, New Mexico, New Jersey, New York, North Carolina, Rhode Island, and Vermont. On March 13, 2017, Sungevity, Inc., along with three affiliates, filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the District of Delaware.

66 Franklin Street

Suite 310

Oakland, CA 94607

United States

Founded in 2006

Phone:

510-496-5500

Fax:

510-380-6875

Key Executives for Sungevity, Inc.

Co-Founder, Chief Executive Officer and Director
Co-Founder and Director
Age: 48
Co-Founder and Strategic Advisor
Chief Financial Officer
Age: 53
Chief Operating Officer
Age: 52
Compensation as of Fiscal Year 2017.

Sungevity, Inc. Key Developments

Motion for Asset Sale Approved for Sungevity, Inc.

The US Bankruptcy Court gave an order approving the sale of substantially all the assets of Sungevity, Inc. on April 17, 2017. The debtor has been authorized to sell all of its assets to LSHC Solar Holdings, LLC, an acquisition vehicle formed by Northern Pacific Group and Hercules Capital, Inc., the stalking horse bidder, for a purchase price of up to $50 million, payable in the form of a credit bid pursuant to the asset purchase agreement dated March 13, 2017. The debtor did not receive any other competing bids for the purchase of its assets and therefore LSHC Solar Holdings, LLC emerged as the winning bidder.

Final DIP Financing Approved for Sungevity, Inc.

The US Bankruptcy Court gave an order to Sungevity, Inc. to obtain DIP financing on a final basis on April 7, 2017. As per the order, the debtor has been authorized to obtain a term loan facility in the amount of a total of $20 million, from LSHC Solar Holdings LLC with Wilmington Trust, N.A. acting as the administrative agent. The DIP loan would carry an interest rate of 15% p.a., along with an additional 4% p.a. interest in the event of default. As per the terms of the DIP agreement, the loan carries a commitment fee of 2% p.a. The loan further carries a facility charge of $0.50 million and work fee of $0.25 million. The DIP facility would mature either on the date which is 45 days following the petition date or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $0.50 million towards unpaid professional fees / administrative expenses and a senior carve-out of $15 million towards the Senior Secured Obligations, and first priority lien upon and security interest in the debtor’s collateral. The proceeds from the DIP financing would be used towards financing working capital expenses, general corporate expenses and to finance transaction fees, costs and expenses in accordance with the DIP Budget. Kirkland & Ellis LLP acted as counsel to the DIP Lender and Alston & Bird LLP acted as counsel to the DIP Agent. The US Bankruptcy Court gave an order to Sungevity, Inc. to obtain DIP financing on an interim basis on March 15, 2017.

Bidding Procedure Approved for Sungevity, Inc.

The US Bankruptcy Court gave an order approving the bidding procedures relating to the sale of substantially all the assets of Sungevity, Inc. on March 29, 2017. The Court approved the asset purchase agreement between the debtor and LSHC Solar Holdings, LLC, an acquisition vehicle formed by Northern Pacific Group and Hercules Capital, Inc., acting as the stalking horse bidder, for the sale of substantially all of its assets for a price of up to $50 million, payable in the form of a credit bid. To qualify as a qualified bidder, interested parties should submit their bids by April 10, 2017. The initial minimum overbid should be in the amount of at least $54 million. Each potential bidder is to submit a deposit of 10% of the purchase price. If the debtor receives any qualified bids then it would hold an auction for its assets on April 12, 2017. At the auction, the subsequent bids would be in increments of $0.25 million. The stalking horse bidder would be entitled to a break-up fee of $0.50 million and expense reimbursement of up to $0.50 million in case of termination of the asset purchase agreement. The sale hearing is scheduled for April 17, 2017. Kirkland & Ellis LLP and Cole Schotz P.C. acted as counsels to the stalking horse.

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Recent Private Companies Transactions

Type
Date
Target
Bankruptcy
March 13, 2017
--
Merger/Acquisition
March 13, 2017
Sungevity SD, LLC And Sungevity Development, LLC And Sungevity International B.V.
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