Microf, LLC, a provider of residential lease-to-own products for the heating, ventilation and air conditioning (HVAC) industry, announced that it has raised $96.7 million in growth capital. The combined debt and equity raise is funded through a new $40 million committed senior debt facility provided by Atalaya Capital Management with an additional $40 million accordion feature, a new $10 million senior debt facility provided by Microf’s existing lender, BrandBank, and $6.67 million in equity provided by current equity investors.
These capital commitments continue Microf’s financial momentum after securing an initial investment from leading private equity firm Rotunda Capital Partners in May 2015. The capital provides the company with a diversity of funding sources, staggered maturities, and ample senior capacity to fund its continued rapid growth.
“Microf is changing the way U.S. homeowners restore their heating and cooling needs with affordable monthly payments,” said Mitch Masters, Microf CEO. “This round of funding will accelerate the profitable growth of Microf and allow us to assist many more homeowners who need alternative solutions to acquire a new HVAC system for their home.”
“HVAC is a mature asset class in need of creative financing solutions,” added Masters. “According to industry statistics, fewer than 30% of U.S. homeowners have enough savings to pay for a new residential HVAC system. The market as a whole is in need of an affordable alternative to help homeowners purchase new systems through monthly payment options.”
Jay Kimbro, Microf Chairman of the Board, added, “With our strong relationship with United Technologies, our scalable technology and our focus on the distributor/contractor/homeowner relationship, Microf is uniquely positioned to shape the next phase of evolution for alternative payment options in the HVAC Industry.”
Alt Ridge Capital, LLC and LEHNS Capital Advisory, LLC served as financial advisors to Microf. BakerHostetler LLP served as legal counsel to Microf. Holland & Knight LLP served as legal counsel to Atalaya. Nelson Mullins Riley & Scarborough, LLP served as legal counsel to BrandBank.