Maxus Capital Carbon SPE I

About

What began as an idea to combat rising COlevels is now a reality with more than 130 patent applications (and over 35 patents granted) worldwide for Carbonfree Chemicals’ technologies.

Carbonfree Chemicals’ patented SkyMine® technology offers a new and much improved way to capture carbon emissions, and store those CO2 gases permanently and safely.

Before now, the best way to deal with greenhouse gases was to “pump them into the ground.” Carbonfree Chemicals’ vision is to have new or existing industrial manufacturing facilities, refineries, or even power plants equipped (or retrofitted) with SkyMine® technology. This technology will remove carbon from flue gases and transform it into solids like sodium bicarbonate (baking soda), and also produce hydrochloric acid, caustic soda, and bleach.

Why solids? There is no need for pipeline transport, injection, or concern about CO2 “re-release,” like with other carbon capture and sequestration (CCS), mineralization, or carbon storage processes.

Based in San Antonio, Texas, Carbonfree Chemicals is backed by inventive venture capital firms, individual investors who desire to help the environment, and even large-scale petroleum conglomerates.

That’s Carbonfree Chemicals’ history. The future is being created today.

Corporate Highlights

6/26/2013: Skyonic raises capital to build chemical plant.

Skyonic, a Texas-based firm that captures carbon dioxide from power plants and turns it into baking soda and chemicals, has just closed a $128 million Series C round of funding.

The round brought in Cenovus Energy, Bluecap Partners, Toyo-Thai Corporation and Energy Technology Ventures as new equity investors. These firms were added to the list of previous big-name funders, which included Berg & Berg Enterprises, Northwater Capital Management, ConocoPhillips, BP Ventures, PVS Chemicals and Zachry Corporation.

…A company like Skyonic (and its range of investors from the fossil fuel industry) are betting that carbon capture will be a far more valuable part of the mix under Obama’s plan. If the company can scale its commercial operations in the short timeframe it says it will, the technology could be ready just when EPA regulation of CO2 from power plants kicks in.

BDC Credit Reporter View

4/9/2019: The only BDC with exposure to the Company is Apollo Investment (AINV), which began in mid 2013 with a 2019 first lien loan for $60mn. That was increased to $79mn in IIIQ 2014. From IVQ 2016, when the Company went on Watch List the debt had dropped back to $59mn. The debt was restructured into a 2020 first lien and subordinated debt in IVQ 2017. Another restructuring occurred in IIQ 2018 when an equity tranche was added but the aggregate amount was not changed. In the IVQ 2018 another $3.8mn senior loan was added, due in 2021 and at a below market yield of 5.0%. The main debt, too, is paid in PIK and at a below market of 5.215%, suggesting all is not well. This is one of AINV’s largest investments, and should the Company go into default or fail could result in the loss of $2.8mn in annual investment income and approximately $0.21 of NAV Per Share.

Highlights

8/8/2013: From AINV’s IIQ 2013 Conference Call: “During the quarter we invested $60 million in the secured debt of Skyonic, or Maxus Capital Carbon as shown in our financial statements, to support the development and construction of a chemical plant”.