Solar-storage power producer MN8 closes $325m private placement

April 4, 2024

Solar energy and energy storage power producer MN8 Energy has closed a private placement with gross proceeds of $325 million from the issuance and sale of shares of the company’s convertible preferred stock.

The proceeds from the private placement will be used to fund the company’s “expanded operations and growth”, a statement said.

The private placement comprises a $200 million investment by Mercuria Energy Group, an independent energy and commodity group, and a $125 million investment by investor Ridgewood Infrastructure.

Stockholders can choose to convert their preferred stock into converted common stock at a future date. As part of the agreement, Mercuria will obtain one seat as well as an observer seat on MN8’s board of directors, Ridgewood will receive an observer seat.

“The closing of our private placement of convertible preferred equity securities is a strategic move aimed at securing capital for tangible and measurable growth,” said Jon Yoder, president and CEO of MN8 Energy. “Our agreements with Mercuria and Ridgewood provide us with the financial means and capital to scale our growth, engineer innovative solutions for our clients and deliver enhanced value to our shareholders.”

Brian A. Falik, Mercuria’s chief investment officer, added: “We are thrilled to support the MN8 team with this strategic investment that will enable MN8 to continue delivering on its growth plans. This transaction is consistent with Mercuria’s strategy of investing in best-in-class management teams who can leverage our energy market capabilities.”