January 28 2014
ATEL Growth Capital is pleased to announce that LS9, Inc., an ATEL Growth Capital portfolio company, has been acquired.
As an early venture lender to LS9, the ATEL Funds provided an asset collateralized loan of $4 million for 36 months. ATEL was collateralized by LS9's production facility in Okeechobee, Florida. ATEL Funds received warrants to acquire LS9 stock as part of the loan agreement. The acquisition of LS9 caused the loan to be repaid early with pre-payment penalties and purchase of the warrants. ATEL Funds netted over $1.1 million in profit and an internal rate of return ("IRR") of more than 20% in 21 months.
LS9, Inc. is a leader in the technology behind the development of sustainable products in the chemical and fuel markets. In 2010, LS9 was awarded the U.S. Environmental Protection Agency's highest environmental honor for its revolutionary technology. LS9 was backed by a group of top tier investors including Khosla Ventures, Flagship Ventures, Blackrock Ventures and Lightspeed Ventures.