Tritium, a developer and manufacturer of direct current charging technology for electric vehicles, entered into a $90 million debt facility with Cigna Investments, the investment arm of Cigna, a U.S.-based health services company, and Barings, a financial services firm and subsidiary of MassMutual, a U.S.-based mutual insurance company.
Tritium plans to use the proceeds from the facility to refinance two prior financings led by Cigna and other company debt. The new facility will extend the availability of funds past the close of Tritium’s proposed business combination with Decarbonization Plus Acquisition Corporation II to 2024.
“With the accelerating momentum across our business and exciting developments emerging in our product development efforts, the combined company will be better equipped to serve its customers by providing leading-edge hardware-plus-software solutions for the EV infrastructure buildout currently underway globally,” Michael Hipwood, CFO of Tritium, said.
Tritium’s existing Cigna facilities are expected to be required to be paid off at the time of closing of the business combination, which would reduce the amount of cash available to the combined company after closing of the business combination. However, the new facility is expected to close concurrently with the business combination, replacing the existing Cigna facilities with a larger facility that matures in 2024. The closing of this facility is subject to, among other things, the closing of the business combination, certain minimum cash requirements and other customary closing conditions. This facility is expected to allow Tritium to repay existing debt, including debt outstanding under the existing Cigna facilities, without the use of funds received from the Decarbonization Plus Acquisition Corporation II trust account. With this facility, Tritium expects to bolster its liquidity upon closing and provide additional working capital.
“This transaction reinforces Tritium’s balance sheet with further capital funding to support Tritium’s global expansion plans and respond to increasing sales and working capital requirements,” David Toomey, chief revenue officer and head of corporate development for Tritium, said. “We thank Cigna for their ongoing support and Barings for joining this long-term partnership.”
“The support by Cigna and Barings to deliver this $90 million facility has come at just the right time, supporting new customer partnerships and shareholders ahead of our upcoming business combination with DCRN,” Jane Hunter, CEO of Tritium, said. “Our EV charging products and technology are recognized as highly innovative and we are very proud to play a significant role in the transition to electrified transport.”
