TSL Express Daily News

Files for Chapter 11 Relief with a Stalking Horse Bid from an Affiliate of White Oak Global Advisors, LLC

Operations Continue as Usual with No Expected Disruption to Operations or Residential Solar Projects

LEHI, Utah, September 03, 2024--(BUSINESS WIRE)--Lumio (the "Company"), a leader in personalized renewable energy, today announced that it has filed voluntary petitions for relief under Chapter 11 in the United States Bankruptcy Court for the District of Delaware (the "Court") to complete a value-maximizing sale process and strengthen its financial position. The Company anticipates completing the sale process in less than two months. During the sale process, the Company’s operations will continue as usual without interruption.

Prior to its Chapter 11 filing, Lumio entered into a stalking horse asset purchase agreement (the "APA") with an affiliate of White Oak Global Advisors, LLC ("White Oak"), the Company’s primary senior secured lender. By the APA, White Oak proposes to acquire substantially all of the Company’s assets for a total purchase price of approximately $100 million in the form of a credit bid. If selected as the successful bidder, White Oak also intends to offer significant equity ownership to the Company’s employees.

Lumio will continue its prepetition sale process through a Court-supervised process designed to elicit the highest or otherwise best bid for its assets in order to maximize value for all stakeholders. A sale transaction will provide certainty regarding the continuation of the business for employees, customers, and trade creditors whose claims will be assumed in the sale.

"Today’s announcement marks an important step forward for Lumio and a continuation of our deliberate efforts to position the business with the strategic, operational, and financial foundation to operate at the forefront of the solar industry as it enters its recovery phase," said Andrew Walton, Chief Executive Officer at Lumio. "With enhanced financial stability and the support of new ownership following the completion of our sale process, we will be well-positioned to capitalize on growth opportunities and better serve our customers through every step of their switch to solar. As we complete our sale process, we are committed to continuing to deliver our industry leading solutions and an excellent experience to our customers across the country."

Lumio has filed a number of customary "first day" motions which, upon approval by the Court, will enable the Company to continue its operations without disruption. The Company has also entered into an agreement with White Oak to receive $8 million of debtor-in-possession ("DIP") financing which, following Court approval, is expected to support operations in the ordinary course as the Company completes its sale process.

Additional information is available through the Company’s claims agent, Stretto at https://cases.stretto.com/Lumio. Stakeholders with questions can email LumioInquiries@stretto.com or call toll-free at (855) 328-2638 or (714) 203-6409 if calling from outside the U.S.

Advisors

Morris, Nichols, Arsht & Tunnell LLP is serving as legal advisors, Houlihan Lokey is serving as investment banker, and C Street Advisory Group is serving as strategic communications advisor to the Company.

About Lumio

Lumio changed the residential solar industry by merging four leading regional solar providers and a software company into a powerful national brand in December 2020. Today, Lumio leads the industry in customer experience, quality, and technological innovation. The company's vision to make power personal diversifies and decentralizes power production via good clean sun energy—making electricity cheaper, cleaner, and more reliable for homeowners across the country. Lumio's more than 1,000 team members are dedicated to their stewardship with nature and crafting earth's best home experience. For more information about Lumio, visit lumio.com.

About White Oak Global Advisors

White Oak Global Advisors, LLC ("White Oak"), a leading global alternative asset manager that manages $9.7 billion of balance sheet assets [1]. White Oak is headquartered in San Francisco and specializes in originating and providing financing solutions to facilitate the growth, refinancing and recapitalization of small and medium enterprises.

[1] As of Q1 2024. Includes leverage facilities of the Financing Affiliates. Please refer to WOGA's most recent Form ADV for its regulatory AUM.

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Contacts

C Street Advisory Group
lumio@thecstreet.com