U.S. microinverter specialist Enphase Energy has extended a term loan facility with Tennenbaum Capital Partners (TCP) from $25 million to $50 million as the firm continues its consolidation and restructuring efforts.
Having recently announced an 18% reduction in its workforce, the California-headquartered company is stepping up efforts to boost global demand for its Home Energy Solution, which comprises microinverter, storage and software management.
To achieve this, Enphase will steer some of the funds from the extended term loan facility towards supporting this aim. Additionally, proceeds from the refinancing will be used to consolidate and repay all amounts currently drawn under its existing Wells Fargo Capital Finance credit line, closing the facility once all debts are settled.
“With our recent market share gains, product launches and restructuring initiatives, we believe we are making great progress toward our goal of achieving profitability,” said Enphase Energy CEO and president Paul Nahi. “Working constructively with TCP, we were able to add additional capital that provides us with improved financial flexibility and further positions us to capitalize on the opportunities in front of us.”
In an 8-K Filing, Enphase confirmed that TCP will take a security interest in the company as a bond against the loan extension. In January, T.J. Rodgers – former CEO of Cypress Semiconductor – and John Doerr, chairman of Kleiner Perkins Caulfield & Byers – invested $10 million in Enphase.
This investment followed a trying 18-month period for the company, during which time it cut the price of its flagship microinverter product by 19% in the face of sustained market and cost pressures throughout the competitive module level power electronics (MLPE) industry.