Carbon Revolution, an OEM supplier and a manufacturer of lightweight advanced technology carbon fiber wheels, established a $60 million debt financing arranged and insured by PIUS, a Gallagher company, and its affiliates.
Carbon Revolution will partly use net proceeds from the four-year program to repay existing lenders, with the remainder of the capital used to fund further Mega-line automation and capacity expansion and to provide general working capital to support the company’s forecasted growth. The financing will be secured by the group’s assets, including its intellectual property.
“The funds raised in this financing will progress our ongoing capacity build out, further automation of the facility to reduce our cost structure, and provide us with working capital to support our growth forecasts without dilution,” Jake Dingle, CEO and managing director of Carbon Revolution, said. “As the automotive industry shifts rapidly to electrification, we are well-positioned to capture this accelerating demand.”
The financing comes at a fixed interest rate of 8.5% per annum with interest-only payments for the first 18 months. The financing will assist with the delivery of the 11 lightweight wheel programs currently awarded to Carbon Revolution by four global automakers, including Ford Motor Company, General Motors Company and Ferrari, as well as three additional programs under engineering contracts.
“In the escalating race to achieve supreme efficiency in automotive vehicles, Carbon Revolution has designed and manufactured some of the most technologically advanced carbon fiber composite wheels, with an extensive IP portfolio spanning multiple jurisdictions,” Joe Agiato, CEO of PIUS, said. “In addition to our excitement in helping Carbon Revolution leverage its IP to become listed in the United States, the PIUS team is enthused about bringing insured technology financing to the Australian market. We look forward to being a part of Carbon Revolution’s future global growth.”
The financing was secured in connection with the SPAC merger process following the November 2022 signing of a definitive business combination agreement with Twin Ridge Capital Acquisition (TRCA) and accompanying scheme implementation deed that is expected to result in the Carbon Revolution business becoming publicly listed in the United States via a series of transactions, including a scheme of arrangement. Upon closing of the transactions, a newly-formed Irish company (called Carbon Revolution Limited) (MergeCo) will acquire both the company and TRCA, and the ordinary shares and warrants of MergeCo are expected to trade on the Nasdaq.
