ESGEN Acquisition and Sunergy Renewables today announced amended transaction terms for their pending business combination.

ESGEN's sponsor has committed to purchase up to $15 million in convertible preferred equity securities, of which $10 million will be funded at the close of the business combination and the remaining $5 million can be funded at the combined company's discretion up to six months after closing. The purchase of the securities will be funded by energy Spectrum Partners VIII.

The updated pro forma implied enterprise value of the combined company is expected to be $390 million, and proceeds are expected to be used to fund operations and growth.

The target is a Florida-based provider of residential solar and energy efficiency solutions.

The deal was announced last April at a pro forma implied enterprise value of $475 million. If approved, the solar energy company would list on the Nasdaq. Read more.

Source: ESGEN Acquisition Sponsor to Buy M in Convertible Securities to Support Sunergy Deal