Black Coral is one of the current investors in OneRoof Energy and had initially purchased $3,000,000 in principal amount of notes.
According to a statement, the parties contemplate total funding of notes for $4,500,000, in tranches.
The notes are secured using unencumbered assets of the company. And the available assets are already pledged as security under OneRoof’s senior credit agreement with North Sky Alliance Fund and NewWorld Environmental Infrastructure, besides the company’s subordinated convertible notes, the statement says.
The notes are subject more or less the same terms and conditions as the company’s outstanding subordinated convertible notes.
The differences though are: the Notes bear interest at a rate of 16 percent per annum compounded monthly and any voluntary prepayment of any installment of the notes requires the payment of a penalty equal to one-ninth (1/9) of the principal amount of the installment of the Loan, but no prepayment is required by the notes or permitted by the senior credit agreement.
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 notes, the statement adds.
Oneroof will use proceeds from the notes for general working capital purposes, including general and administrative, IT development and investment in solar projects.
Ajith Kumar S