Vancouver (pcJ News Briefs) – Royalty North Partners Ltd. (TSX-V: RNP) has loaned US $600,000 to SST Construction, LLC by way of an unsecured promissory note.
The promissory note bears interest at 10% per annum payable monthly and has a one year term, at which time it matures and becomes due and payable. Royalty North Partners funded the Loan with cash on hand. The loan is an arm’s length transaction.
Established in 2013, the SunSystem Group is a leading provider of operations and maintenance (O&M), engineering, procurement and construction (EPC) and asset management services in the solar industry. It derives a high degree of recurring revenue through its O&M businesses and EPC work through its relationships with residential originators and financing platforms. The SunSystem Group has in total nine office locations with its headquarters in Sacramento, California.
Justin Currie, CEO of Royalty North Partners, commented: “SunSystem is experiencing tremendous growth and is looking mainly for working capital support for its core business line. We are delighted to support SunSystem in their next growth phase to become the partner of choice for either residential or commercial solar system clients.”
Christian Payne, Executive Chairman of SunSystem, commented: “We are excited to partner with RNP to help support our future growth strategy. The unique nature of RNP’s investment structure enables us to focus on our plan with increased financial flexibility and without any dilution for the current SunSystem shareholders.”
SunSystem represents Royalty North Partners’ second investment since Royalty North Partners initiated its change of business (COB) last year. In September 2016, Royalty North provided US $5.5 million loan to Country Wine & Spirits, Inc., a San Diego retailer of wine, beer & liquor.
Royalty North Partners is currently evaluating a number of other high-quality companies with the goal of providing attractive royalty-based financing to its partners and further diversifying its portfolio of royalty investments.