Royalty North Partners (RNP) closed a loan transaction with SunSystem, a leading provider of operations and maintenance, engineering, procurement and construction and asset management services in the solar industry.

RNP has loaned a total of $5 million in two tranches to SunSystem. The previously announced $600,000 funding by RNP to SunSystem under the unsecured promissory note issued on March 13, 2017 was deemed to be the initial advance under the agreement and any outstanding interest accrued under the Promissory Note from the promissory note issue date to the date of signing of the SunSystem agreement was waived by RNP. The second tranche of $4.4 million was advanced on May 5.

SunSystem has guaranteed minimum loan payments of $700,000 per year for the first three years. The proceeds of the loan will be used for working capital, capital expenditure and to replace existing debt.

The company also entered into a credit agreement with the Canadian Imperial Bank of Commerce (CIBC) for a committed credit facility initially in the amount of $5 million maturing on the third anniversary of closing the credit agreement.

The proceeds borrowed under the credit facility were used by RNP to fund, in part, the second advance under the SunSystem agreement and will be used by RNP for financing royalty financing transactions, working capital and general corporate purposes going forward.