$96.7 Million raised in new capital to fund its continued growth

Atlanta, GA, May 9, 2017 – Microf, LLC, the leading provider of residential lease-to-own products for the heating, ventilation and air conditioning (HVAC) industry, announced today that it has raised $96.7 million in growth capital. The combined debt and equity raise are 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 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.”

This capital raise comes on the heels of a string of significant milestones for Microf including:

A partnership with United Technologies Corp. (NYSE: UTX) to provide the Microf program to their entire nationwide network of Carrier, Bryant, Payne and ICP distributors and contractors. Click to Read the Carrier Press Release

Launch of a secure, stable and scalable IT infrastructure and a proprietary decision engine that will allow Microf to grow well into the future

Launch of a simple online application process that delivers decisions within seconds through a secure platform

“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.

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About Microf

Microf was established in 2010 to accommodate the growing demand for more flexible options surrounding the replacement of residential Heating/Cooling systems. Microf provides competitive and convenient rent-to-own/lease solutions for residential HVAC systems in the U.S. through a network of preferred HVAC distributors and contractors. For additional information on the benefits of Microf, please visit www.microf.com.

About Atalaya

Atalaya is an alternative investment advisory firm founded in 2006 and headquartered in New York City. Atalaya manages over $2.5 billion in opportunistic credit and special situations funds, investing primarily across three principal strategies – financial assets, real estate and corporate.

About BrandBank

BrandBank is a 112 year old bank based in Metro Atlanta with assets of $2.4 Billion and a focus on commercial banking. www.thebrandbank.com | Member FDIC | Equal Housing Lender

For a pdf of this press release and contact information, click here.