Tritium, a world leader in electric vehicle (EV) DC fast charging technology, has successfully closed a $45 million debt private placement to Cigna Investments Inc., the investment arm of Cigna Corporation, a US-based global health services company.
The funds will be used to refinance an Export Finance Australia trade finance facility and to increase production capacity as the business continues its impressive growth trajectory and expansion in the Americas, Europe, and Asia.
Founded in Brisbane, and having already deployed more than 4,500 charging stations and provided over 600,000+ charging sessions in more than 33 countries, this investment will accelerate Tritium’s production in the coming months to satisfy the large number of orders on hand from a diversified blue-chip customer base.
“We are very proud that, despite the deal being negotiated through the worst volatility of the COVID-19 crises, Cigna recognised the immense value in Tritium’s differentiated technology and global market position, underpinned by exponential sales growth for the last five years” said David Toomey, Tritium’s Head of Corporate Development.
Toomey, who has accomplished over 10 equity raising rounds for Tritium in the past six years, says this capital raise is one of the most satisfying.
“Raising a significant amount of debt for a growth company in the midst of a pandemic was extremely challenging, with the transaction being given a low chance of success,” he said. “It’s a testament to the team and Tritium’s DNA that the company has developed the business fundamentals required to now become a credit-worthy organisation attracting international debt investors.”
In addition to the equity injections, over many years Tritium successfully used short term contract-based trade finance facilities from the very supportive, federal government-backed Export Finance Australia (formally EFIC), while the business was still maturing to the level where it could attract long term commercial debt.
Over the past four months, the company’s order backlog has tripled as it has secured large deals in Europe, the US and in Australia.
Jane Hunter, the CEO of Tritium, said: “this is a welcome capital injection as the company continues to grow operations and invests in new product development and global marketing. There are some exciting deals and product launches ahead for Tritium, and we have an incredibly dedicated team helping to grow this Australian manufacturing success story.
“The recent orders are on the back of more traditional sectors such as fuel retail, automotive and utilities joining the rollout of EV charging infrastructure and the general acceleration of electric vehicle uptake in Europe and the US.”
Tritium has proven itself a leader on the global stage in the most mature electric vehicle markets including Norway and California, with huge growth from mass market uptake in the EV sector still to come.
Commonwealth Bank of Australia (CBA) was the sole arranger for the transaction, with Gilbert & Tobin and GRT Lawyers providing advice to Cigna and Tritium respectively.
“Tritium is a company founded on Australian R&D. It is at the forefront of electric vehicle charger technology and we were pleased to work side-by-side with the team to deliver financing that supports their global revenue strategy and mission to support cleaner, healthier, and more convenient cities,” said Mark Wang, CBA’s Global Capital Markets Executive Director.