Tigo Energy, a solar inverter and energy storage provider, signed a definitive agreement with L1 Energy for the purchase of $50 million of newly issued convertible notes. The company said it will use the new capital for growth in intelligent solar and energy storage solutions, as well as the repayment of existing debt.
The new notes bear interest at 5.0% with a three-year maturity. The notes can convert into common shares of Tigo stock or an equivalent security created as a result of a public company event, which includes Tigo’s merger with a special purpose acquisition company or SPAC.
“We look forward to deploying this capital to further our mission of providing critical solar solutions that optimize safety, yield and costs,” said Zvi Alon, chief executive officer of Tigo. “This investment, coupled with anticipated proceeds from our business combination, puts us in a position of strength as we look towards entering the public markets and continuing our robust growth trajectory.”
On December 6, 2022, Tigo Energy and Roth CH Acquisition IV Co. announced a business combination agreement under which Tigo will become a public company listed on the Nasdaq exchange with a $600 million pre-money equity valuation.. The SPAC platform is managed by Roth Capital Partners and Craig-Hallum Capital Group. The transaction is expected to close in Q2 2023.
L1 Energy is the energy investment division of LetterOne (L1), an investment fund formed in 2013 by Lord Browne, a British oil magnate who served as chief executive officer of BP from 1995 to 2007, and later held roles at Riverstone Holdings, a private equity firm with holdings in oil and gas as well as renewable energy, including Pattern Energy.
LetterOne is based in Luxembourg and manages about $26.8 billion in global investment, of which energy represents about $6 billion or 22.5% of net assets under management. Besides Tigo, L1 Energy’s sustainability portfolio includes investments in Plastic Energy, a chemical recycling company that converts end-of-life plastics into reusable materials, and H2Scan, a provider of hydrogen sensor to the utility and industrial markets.
Formed in 2007, Campbell, California-based Tigo Energy specializes in module level power electronics designed to boost the output power of residential, commercial, industrial, and utility solar systems in applications ranging from a few kilowatts to hundreds of megawatts in rooftop, ground-mounted and floating PV applications.
To date the company has secured a portfolio of 115 patents and reports shipments of more than 10 million power electronic devices worldwide. With operations in more than 100 countries, Tigo systems generate more than 1 GWh of solar production daily.
On December 16, Tigo acquired FSIGHT, an energy data analytics software company which gives the company a predictive platform that provides actionable system performance data from the grid to the module level. FSIGHT is based in Hod Hasharon, Israel.
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