Predict your next investment

Corporation
ENERGY & UTILITIES
tfcutilities.com

See what CB Insights has to offer

Stage

Convertible Note | Alive

Total Raised

$4.75M

Last Raised

$4.75M | 6 yrs ago

About TFC Utilities

TFC Utilities transform regulated utilities with a twenty first century model that drives mass adoption of clean, low cost energy producing and energy saving technologies, while optimizing the grid. The company owns, operates and optimizes moderate-sized regulated utilities in a manner that produces the lowest practical cost and highest levels of customer service.

TFC Utilities Headquarter Location

1707 L Street, NW Suite 1020

Washington, DC, 20036,

United States

202-452-5850

Latest TFC Utilities News

GridPoint close to ceasing operations before sale, documents show

Nov 23, 2015

GridPoint CEO Todd Raba, who is joining TFC Utilities, declined to address documents that… more PR NEWSWIRE Arlington-based energy tech company GridPoint , backed by $285 million in venture capital, sold for just $62.5 million, wiping out the investments of most of its shareholders. TFC Utilities announced its acquisition of GridPoint earlier this month without disclosing terms, but information on the deal distributed to GridPoint shareholders and obtained by the Washington Business Journal details the terms, the potential distribution to shareholders and the deteriorating financial condition of GridPoint. GridPoint CEO Todd Raba, who is joining TFC Utilities, declined to address documents that… more PR NEWSWIRE “The company was facing the very real prospect of having to cease operations due to significant liquidity issues,” according to the documents. Larry Kellerman , managing partner at TFC Utilities, said the purchase price stated in the documents is wrong but he declined to provide another number, citing a confidentially agreement. He said the purchase, which closed Oct. 28, was an-all cash deal. He said he had no visibility into how the shareholders would be paid or in what amounts, but that wasn’t pertinent to his side of the transaction. “With respect to how we engaged as buyers, it really wasn’t a relevant consideration for us,” Kellerman said. GridPoint CEO Todd Raba , who is joining TFC Utilities as a partner and senior utility executive specialist, issued a statement: “The transaction closed on Oct. 28th and stockholders were notified accordingly. GridPoint is privately held and does not release financial transaction details.” While the documents specifically show $62.5 million as the top line in the deal, the ultimate amount distributed is subject to a number of adjustments depending on the timing of various payments and distributions, all of which could affect the ultimate purchase amount. Of the $62.5 million in cash from TFC Utilities cited in the merger documents, $38.4 million will go toward paying off the company’s debts, including GridPoint’s latest $22.2 million loan and related interest, according to the documents. Shareholders of Series BB Preferred stock would receive a payout of $3.86 per share, according to the documents, far below the $6 per share preferred liquidation value set when the shares were purchased. Overall, GridPoint had 4,360,883 Series AA preferred shares; 3,881,481 Series BB preferred shares; and 45,810,493 series A common shares outstanding at the time of the purchase. Series AA shareholders and common stock shareholders received no payout from the deal. Series AA preferred stock also had a liquidation preference of $6 per share. The only other shareholder set to receive a payout is Fortress Investment Group LLC, which will receive $5 million in exchange for its merger consent as the majority holder of Series AA Preferred Stock and for its agreement to loan GridPoint $3 million. That loan will be part of a $6 million working capital loan to cover the company’s costs and expenses through the merger process, according to the documents. GridPoint had seen declining revenue in recent years, dropping from $23.69 million in 2013 to $22.749 in 2014. The company recorded a loss of $20 million in 2014, down from $51 million in 2013. The 2013 loss was made larger by a one-time write down of $25 million. The company had run up more than $418 million in accumulated deficits over its lifetime while bringing in a total of $408 million in revenue and venture capital, according to the merger documents. The $62.4 million payout will be made in two installments, with $20 million payable on the first anniversary of the merger and the remaining balance payable on the second anniversary of the closing. Raba, who was appointed GridPoint CEO in 2013, was set to receive a $1.5 million bonus within 30 days if GridPoint was purchased. Raba agreed to defer $1 million of that payment until the shareholder payout or receipt of at least $15 million in funds from TFC Utilities. The deal also includes a $2.5 million bonus pool for members of GridPoint management who stay through the completion of the merger, according to the documents. GridPoint struggled for a while to find a buyer and the TFC Utilities offer might have been its last chance, according to the merger documents. In the fall of 2014, GridPoint hired Moelis & Company LLC to help connect GridPoint with interested buyers. After reaching out to 67 different parties regarding a purchase, none submitted offers. On May 6, Peter Corsell, TFC Utilities board chairman and also a partner with the company, outlined a potential acquisition by the D.C.-based energy investment company. The GridPoint board ultimately rejected an initial offer by TFC Utilities consisting of $40 million in cash and a 20 percent common share equity stake in TFC Utilities before negotiating the final cash deal. Kellerman has said he has already secured $500 million in commitments and is hoping to raise a total of $3.5 billion to purchase a small to mid-sized energy utility as part of a bid to disrupt the industry — with GridPoint playing a part in the services and products his utility would eventually offer. Andy Medici covers money, the economy, demographics, housing and financial services. Related Content

Predict your next investment

The CB Insights tech market intelligence platform analyzes millions of data points on venture capital, startups, patents , partnerships and news mentions to help you see tomorrow's opportunities, today.

CB Insights uses Cookies

CBI websites generally use certain cookies to enable better interactions with our sites and services. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. You can read more about your cookie choices at our privacy policy here. By continuing to use this site you are consenting to these choices.