Mosaic Takes Strategic Action to Restructure and Recapitalize with the Support of Its Lender to Position the Company for the Future

Solar Mosaic (the "Company" or "Mosaic"), a fintech platform for U.S. residential solar and energy-efficient home improvements, today announced the Company filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code (“Chapter 11”) in the United States Bankruptcy Court for the Southern District of Texas (the “Court”). Through the Chapter 11 process, Mosaic intends to complete a restructuring and recapitalization supported by certain of the Company’s existing lenders, including Forbright Bank (“Forbright”) acting as Administrative Agent on behalf of lenders, while simultaneously conducting a comprehensive marketing process of its platform and other assets of the Company.

Prior to filing for Chapter 11, Mosaic took actions to strategically and operationally reorganize the business to meet its current liquidity needs. Macroeconomic challenges facing the entire residential solar industry, including high interest rates and legislation that threatens to eliminate tax credits for residential solar, have impacted the flow of capital. Mosaic determined a Court-supervised process was the best way to maintain its loan servicing platform, effectuate a full sale and marketing process for its assets, and maximize value for its stakeholders.

This important step was taken after careful consideration and in consultation with the Company's Board of Directors and advisors. The Company expects to execute the restructuring and recapitalization through a Chapter 11 plan of reorganization sponsored by Forbright and potentially consummate one or more asset sale transactions pursuant to Section 363 of the U.S. Bankruptcy Code.

Throughout the Court-supervised process, Mosaic expects to remain fully operational without disruption, and the Company remains committed to working with its network of installers, investors and capital markets partners, and customers. Mosaic plans to maintain its loan servicing operation, ensuring customers can continue to pay their loans as planned and collections are remitted to loan owners. As an existing loan servicing customer of Mosaic, Forbright intends to use its significant financial strength to support Mosaic’s servicing operations for all loan owners.

“Today’s announcement marks a significant step for Mosaic to address our financial position amid the macroeconomic challenges facing the residential solar industry as well as the recent legislation passed by the House that rolls back residential solar tax credits,” said Patrick Moore, Mosaic Chief Executive Officer. “Throughout this process, we remain focused on maintaining stability for our customers, business partners, and employees.”

Mosaic will receive $45 million in debtor-in-possession financing from its existing lenders, including $15 million in new money financing which, following court approval, is expected to fund the company’s ongoing operations and administrative expenses during the Chapter 11 cases. Mosaic has filed a number of customary motions with the Court to ensure that its operations continue as usual during the Court process. This includes motions requesting Court authority to pay employee wages and benefits, compensate certain vendors and suppliers on a go-forward basis, and facilitate the completion of partially finished installation projects.

Additional information regarding the Company’s Chapter 11 process is available at https://cases.ra.kroll.com/MOSAIC. Stakeholders with questions can contact the Company’s claims agent, Kroll by calling (833) 953-7040 (U.S./Canada) or +1 (646) 974-5614 (International) or emailing mosaicInfo@ra.kroll.com.

Advisors

Paul Hastings LLP is serving as legal counsel, BRG is serving as chief restructuring officer, Jefferies is serving as the investment banker, and C Street Advisory Group is serving as strategic communications advisor to the Company. Blank Rome LLP is serving as legal counsel and Huron Consulting Group is serving as financial advisor to Forbright Bank.

About Mosaic

Mosaic is an industry-leading fintech platform for sustainable home improvements. Founded in 2010, Mosaic is a pioneer in clean energy lending providing innovative solutions for financing solar, battery storage, and more. Mosaic has funded $15 billion in loans to date, helping more than 500,000 households make their homes more sustainable and efficient.

About Forbright Bank

Forbright is an FDIC-insured bank and commercial lender focused on helping to build a brighter future. Forbright is committed to exceptional client service by providing seamless, innovative personal banking services to depositors and creative financing solutions to middle market businesses and investors in healthcare, technology, financial services, real estate, and other industries.

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