e2 Companies, a provider of energy solutions and services, has fully subscribed its initial private placement bond offering, e2c ESA Bond 1 LLC, after raising $100 million from investors.
According to the company, proceeds from the offering will be used to fund the “ongoing development of equipment and engineering costs for identified installations backed by energy service agreements for the company’s disruptive energy technology, such as its patented R3Di system, which provides resiliency and reliability to utilities, commercial and industrial customers.”
The e2c ESA Bond 1 offering initially launched in June 2020 with an intent to raise $25 million from accredited investors and was expanded to $100 million as demand for the bond offering increased, the company said.
The offering provided 7.0 percent Series A senior secured bonds with a 3-year maturity and 9.0 percent Series B senior secured bonds with a 5-year maturity. Interest payments are funded by the contractual agreements on the systems and services for the energy users, while principal payments are secured by the contracts and assets of e2 Companies.
“The strong level of interest in our initial senior secured bond offering demonstrates the growing demand among investors for asset-backed income opportunities from alternative investments that are not correlated to the markets and feature shorter term maturities,” said James Richmond, president and chief executive officer. “The capital generated by this offering has allowed us to fund the fulfillment of our growing client contracts and further expand our ability to meet the expanding demand for the unique technology solutions developed by e2 Companies.”
The bonds are under an indenture that contractually specifies covenants designed to stipulate reserve requirements and restrict the company’s ability to incur third-party indebtedness. The indenture requires e2 Companies to meet these covenants and to fulfill their obligation. UMB Bank serves as the independent trustee and can enforce the covenants on behalf of the bondholders.
On March 22, 2022, the company’s flagship technology, the R3Di system, was awarded a patent by the United States Patent and Trademark Office, which approved all 19 claims in the patent request.
As such, e2 Companies is the sole supplier of a “Virtual Utility” system of continuous conditioned power, which is now protected by a patent for 20 years.
According to the company, the R3Di system is a 100 percent site load replacement for the more expensive critical load uninterruptible power supply systems that have shorter life spans and increased toxic landfill waste. It also provides a customer with future proofing for renewables, hydrogen or electric vehicle charging stations to be easily added for a path to a ZERO carbon future.
e2 Companies, an ISO 26000 ESG focused organization, bills itself as the first “vertically integrated virtual utility” for power generation, distribution, and energy economics in the marketplace.