[sheet: Cover & Summary]

[sheet: Cover & Summary]
Field | Value
Document Title | Funds Flow Memorandum — Final Execution Version
Matter Number | 1041-00003
Date | July 8, 2024
Prepared By | Calderwood & Harkness LLP
Transaction | Acquisition of Cloudium Technologies plc by Solara Digital Infrastructure Fund VI LP
Structure | Reverse Triangular Merger — Stratos Merger Sub Inc. merging with and into Cloudium Technologies plc
Closing Date | July 9, 2024
Effective Time | 11:59 PM ET, July 9, 2024
Governing Law | State of Delaware
Deal Value | $6,800,000,000
Per-Share Merger Consideration | $36.92
Shares Outstanding | 184,200,000
Total Funding Requirement | $7,188,944,048
Total Sources | $7,188,944,048
Responsible Partner | Harrison Wexford
Lead Associate | Tiffany Rosenthal
Working Associate | Andrew Fitzpatrick
Status | FINAL — For Execution-Day Coordination
Distribution | Solara (Marcus Elliston, Priya Narasimhan); Osprey Bancroft & Co. (Damien Harlow); Meridian Atlantic Bank, N.A. (Graham Whitaker); Ironclad Capital Markets LLC (Samuel Diaz); Cobalt Trust Company (Laura Ng); Winthrop & Hale LLP (Christine Novak); Ridgeway Phelps & Sato LLP (Catherine Answorth); Cascade Corporate Services Inc.; Atlas Commercial Lending Corp.
Supersedes | Draft Funds Flow Memorandum dated July 1, 2024
[sheet: Sources of Funds]
Source No. | Source Category | Entity / Provider | Description | Amount ($) | Percentage of Total | Notes
1 | Term Loan B | Meridian Atlantic Bank, N.A. (Lead Arranger / Administrative Agent) and Ironclad Capital Markets LLC (Co-Arranger) | Senior secured Term Loan B; 7-year maturity (July 9, 2031); SOFR + 325 bps; funded at closing per Credit Agreement dated July 9, 2024 | 3,740,000,000 | 52.03% | Commitment per Debt Commitment Letter dated January 22, 2024; full draw at closing; $0 Revolving Credit Facility drawn
2 | Equity Contribution — Fund VI | Solara Digital Infrastructure Fund VI LP | Cash equity contribution per Equity Commitment Letter dated January 22, 2024; includes $425,000,000 co-investment from Solara Digital Co-Invest VI-A LP | 2,832,888,096 | 39.41% | Wired from Fund VI account; EIN 87-4523190
3 | Rollover Equity — Jonathan Hargrove | Jonathan Hargrove (CEO, Cloudium Technologies plc) | Rollover of 50% of 7,736,400 shares (3,868,200 shares) at $36.92/share into equity of surviving entity per Rollover Agreement dated January 22, 2024 | 142,814,544 | 1.99% | Non-cash; shares contributed, not wired
4 | Rollover Equity — Pinnacle Growth Ventures LLC | Pinnacle Growth Ventures LLC | Rollover of 60% of 21,367,200 shares (12,820,320 shares) at $36.92/share into equity of surviving entity per Rollover Agreement dated January 22, 2024 | 473,241,408 | 6.58% | Non-cash; shares contributed, not wired
Subtotal — Cash Sources | 6,572,888,096 | 91.43% | Term Loan B + Equity Contribution
Subtotal — Non-Cash Sources (Rollover) | 616,055,952 | 8.57% | Hargrove + Pinnacle rollover equity
TOTAL SOURCES | 7,188,944,048 | 100.00%
[sheet: Uses of Funds]
Use No. | Use Category | Recipient / Payee | Description | Amount ($) | Percentage of Total | Notes
1 | Cash Merger Consideration | Non-Rolling Cloudium Stockholders (via Cascade Corporate Services Inc. as Paying Agent) | Cash consideration of $36.92/share to all stockholders other than rollover participants, paid through Cascade Corporate Services Inc. (transfer agent / exchange agent); includes $544,000,000 withheld for indemnity escrow | 6,183,944,048 | 85.98% | 167,511,480 shares × $36.92; Letters of Transmittal mailed July 10, 2024; escrow carved out from this amount
2 | Rollover Equity (Non-Cash) | Surviving Entity Equity | Rollover equity contribution by Jonathan Hargrove ($142,814,544) and Pinnacle Growth Ventures LLC ($473,241,408) — non-cash use offset against non-cash source | 616,055,952 | 8.57% | Non-cash; reflected for balancing purposes
3 | Existing Indebtedness Payoff — Term Loan | Atlas Commercial Lending Corp. (as Administrative Agent) | Repayment of existing senior secured term loan under Credit Agreement dated March 15, 2021; per Payoff Letter dated July 5, 2024 | 620,000,000 | 8.63% | Wire per payoff letter instructions; UCC-3 termination statements to be filed
4 | Existing Indebtedness Payoff — Revolving Facility | Atlas Commercial Lending Corp. (as Administrative Agent) | Repayment of drawn revolving facility ($200,000,000 drawn of $400,000,000 capacity) under same Credit Agreement dated March 15, 2021 | 200,000,000 | 2.78% | Wire per payoff letter instructions; facility terminated at closing
5 | Indemnity Escrow Deposit | Cobalt Trust Company (as Escrow Agent) | Deposit of 8% of deal value into indemnity escrow per Escrow Agreement; 50% ($272,000,000) released July 9, 2025; remainder released January 9, 2026, less pending claims. Funded from cash merger consideration (withheld from stockholders). | 544,000,000 | — | Carved out from Cash Merger Consideration (Use No. 1); not an additive use for reconciliation purposes
6 | Estimated Transaction Expenses | Various (see Expense Detail tab) | Advisory fees, legal fees, financing costs, insurance premiums, regulatory filing fees, proxy solicitation, and other transaction-related costs | 185,000,000 | 2.57% | See Expense Detail sheet for line-item breakdown; amounts estimated and subject to final reconciliation
TOTAL USES (Gross — Including Escrow Carved from Consideration) | 8,349,000,000 | Gross total before netting rollover and escrow carve-out
Less: Rollover Equity (Non-Cash Offset) | -616,055,952 | Non-cash items netted
Less: Escrow (Carved from Cash Merger Consideration) | -544,000,000 | Escrow withheld from stockholder proceeds, not additive funding
TOTAL USES (Net Cash Required) | 7,188,944,048 | Cash Merger Consideration ($6,183,944,048) + Debt Payoff ($820,000,000) + Expenses ($185,000,000) = $7,188,944,048
TOTAL USES (Balancing — Matches Total Sources) | 7,188,944,048 | 100.00% | Sources = Uses confirmed
[sheet: Expense Detail]
Item No. | Expense Category | Payee / Service Provider | Role | Estimated Amount ($) | Paid By | Notes
1 | Buyer's Legal Fees | Calderwood & Harkness LLP | Buyer's Counsel (M&A, Antitrust, Tax) | 32,500,000 | Solara / Fund VI | Includes fees for Harrison Wexford, Beatrice Holloway, Tiffany Rosenthal, Andrew Fitzpatrick, Leonard Cross, Elaine Forsythe; NY, DC, and London offices
2 | Buyer's UK Regulatory Counsel | Albright & Kerr LLP | UK CMA Counsel (Fiona McAllister) | 3,200,000 | Solara / Fund VI | CMA Phase 1 merger notification; Case No. ME/7184/24
3 | Target's Legal Fees | Ridgeway Phelps & Sato LLP | Target's Counsel (Catherine Answorth, Alistair Fenn, Robert Tillman) | 22,500,000 | Cloudium (reimbursed at closing) | NY and London offices; paid from merger consideration
4 | Buyer's Financial Advisory Fee | Osprey Bancroft & Co. | Buyer's Financial Advisor (Damien Harlow) | 27,200,000 | Solara / Fund VI | 0.40% of deal value; per engagement letter dated November 15, 2023
5 | Target's Financial Advisory Fee | Veridian Partners LLC | Target's Financial Advisor; Fairness Opinion delivered January 21, 2024 (Monica Pressler) | 23,800,000 | Cloudium (reimbursed at closing) | 0.35% of deal value; per engagement letter dated October 22, 2023
6 | Buyer's Accounting / Tax Advisory | Glenmore Thornton LLP | Tax Structuring and Financial Due Diligence (Richard Okamura, Vanessa Liu) | 8,750,000 | Solara / Fund VI | Includes quality of earnings, tax structuring, and integration planning
7 | Debt Financing — Arrangement Fees | Meridian Atlantic Bank, N.A. / Ironclad Capital Markets LLC | Lead Arranger and Co-Arranger fees per Fee Letter dated January 22, 2024 | 37,400,000 | Fund VI / Borrower | Per confidential Fee Letter; includes upfront fees and OID; 1.0% of TLB commitment
8 | Lenders' Counsel Fees | Winthrop & Hale LLP | Counsel to Meridian Atlantic Bank and lending syndicate (Christine Novak) | 5,400,000 | Fund VI / Borrower | Per engagement letter
9 | R&W Insurance Premium | Northfield Assurance Ltd. | Buyer-side R&W policy (Policy No. NFA-TRI-2024-00487); $680,000,000 limit; 2.0% rate | 13,600,000 | Solara / Fund VI | Bound January 19, 2024; effective July 9, 2024
10 | R&W Insurance Broker Fee | Peregrine Advisory Group LLC | Insurance broker (Timothy Gallagher) | 680,000 | Solara / Fund VI | Per broker engagement letter dated January 10, 2024
11 | Escrow Agent Fees | Cobalt Trust Company | Escrow agent services (Laura Ng) | 175,000 | Fund VI | $544,000,000 escrow; releases at 12 and 18 months
12 | Transfer Agent / Exchange Agent | Cascade Corporate Services Inc. | Transfer agent and registrar for Cloudium common stock; exchange-agent services | 350,000 | Cloudium / Surviving Entity | Letter of Transmittal distribution July 10, 2024
13 | Proxy Solicitor | Blackthorn Proxy Advisors LLC | Proxy solicitation for Cloudium stockholder vote (May 20, 2024; 82.4% approval) | 1,250,000 | Cloudium (reimbursed at closing) | Per engagement letter dated March 1, 2024
14 | HSR Filing Fee | FTC Premerger Notification Office | HSR Act filing fee — $6.8B transaction value tier | 2,335,000 | Solara / Fund VI | Filed February 9, 2024; expired March 11, 2024; no Second Request
15 | UK CMA Filing Fee | UK Competition and Markets Authority | CMA merger notice filing fee; Case No. ME/7184/24 | 160,000 | Solara / Fund VI | Filed February 12, 2024; Phase 1 clearance April 3, 2024
16 | Auditor Fees (Comfort / Consent) | Harwell & Dobson LLP | Target's auditor (Martin Chisholm); comfort letter and consent for proxy | 1,850,000 | Cloudium (reimbursed at closing) | Comfort letter delivered April 14, 2024
17 | SEC Filing / Printing / Mailing | Various | EDGAR filing agent; proxy printing and mailing; Form 25 / Form 15 | 1,100,000 | Cloudium / Surviving Entity | Proxy filed April 15, 2024; Form 25 July 10, 2024; Form 15 July 30, 2024
18 | Miscellaneous (D&O tail, title, recording, etc.) | Various | D&O insurance tail policy (6-year), Delaware filing fees, recording and registration | 2,750,000 | Various | D&O tail premium $2,200,000; DE filing fees $350,000; other $200,000
TOTAL ESTIMATED TRANSACTION EXPENSES | 185,000,000 | Subject to final reconciliation post-closing
[sheet: Wire Instructions]
Wire No. | Payee / Recipient | Purpose / Use Reference | Amount ($) | Receiving Bank | ABA / SWIFT | Account Name | Account Number | Reference / Memo | Confirmed By | Confirmation Date
1 | Atlas Commercial Lending Corp. | Payoff — Existing Term Loan ($620,000,000) | 620,000,000 | Greaves Bancorp, New York, NY | ABA 021000021 | Atlas Commercial Lending Corp. — Loan Payoff Account | XXXX-XXXX-7841 | Cloudium Technologies plc — Term Loan Payoff — Payoff Letter dated July 5, 2024 | Andrew Fitzpatrick / Calderwood & Harkness LLP | July 8, 2024
2 | Atlas Commercial Lending Corp. | Payoff — Existing Revolving Facility ($200,000,000) | 200,000,000 | Greaves Bancorp, New York, NY | ABA 021000021 | Atlas Commercial Lending Corp. — Revolver Payoff Account | XXXX-XXXX-7842 | Cloudium Technologies plc — Revolving Facility Payoff — Payoff Letter dated July 5, 2024 | Andrew Fitzpatrick / Calderwood & Harkness LLP | July 8, 2024
3 | Cobalt Trust Company | Indemnity Escrow Deposit ($544,000,000) | 544,000,000 | Ridgeway Capital Markets, New York, NY | ABA 021000089 | Cobalt Trust Company — Escrow Account — Solara/Cloudium Indemnity | XXXX-XXXX-5193 | Escrow Agreement — Matter No. 1041-00003 — Indemnity Escrow | Tiffany Rosenthal / Laura Ng (Cobalt Trust) | July 8, 2024
4 | Cascade Corporate Services Inc. | Merger Consideration — Paying Agent Deposit | 5,639,944,048 | Bank of New York Mellon, New York, NY | ABA 021000018 | Cascade Corporate Services Inc. — Exchange Agent Trust Account | XXXX-XXXX-3206 | Cloudium Technologies plc Merger Consideration — Paying Agent Fund | Andrew Fitzpatrick / Calderwood & Harkness LLP | July 8, 2024
5 | Meridian Atlantic Bank, N.A. | Term Loan B Funding — Borrower Proceeds Account (INBOUND) | 3,740,000,000 | Meridian Atlantic Bank, N.A., New York, NY | ABA 026009593 | Cloudium Technologies plc (Borrower) — Proceeds Account | XXXX-XXXX-9014 | Credit Agreement dated July 9, 2024 — Initial TLB Funding | Graham Whitaker / Meridian Atlantic | July 8, 2024
6 | Solara Digital Infrastructure Fund VI LP | Equity Contribution — Merger Sub Funding Account (INBOUND) | 2,832,888,096 | Camberwell Securities, New York, NY | ABA 021407912 | Stratos Merger Sub Inc. — Closing Funding Account | XXXX-XXXX-6127 | Equity Commitment Letter dated January 22, 2024 — Closing Equity Contribution | Marcus Elliston / Solara | July 8, 2024
7 | Osprey Bancroft & Co. | Buyer's Financial Advisory Fee | 27,200,000 | Adriatic Savings Bank, New York, NY | ABA 026009593 | Osprey Bancroft & Co. — Fee Account | XXXX-XXXX-4410 | Financial Advisory Fee — Cloudium Acquisition — Matter 1041-00003 | Tiffany Rosenthal / Calderwood & Harkness LLP | July 8, 2024
8 | Veridian Partners LLC | Target's Financial Advisory Fee | 23,800,000 | Ostrander Financial, New York, NY | ABA 026012881 | Veridian Partners LLC — Fee Account | XXXX-XXXX-8823 | Financial Advisory Fee — Cloudium Transaction | Andrew Fitzpatrick / Calderwood & Harkness LLP | July 8, 2024
9 | Meridian Atlantic Bank, N.A. / Ironclad Capital Markets LLC | Debt Financing — Arrangement Fees | 37,400,000 | Meridian Atlantic Bank, N.A., New York, NY | ABA 026009593 | Meridian Atlantic Bank — Fee Account | XXXX-XXXX-9201 | Fee Letter dated January 22, 2024 — Arrangement Fees and OID | Graham Whitaker / Meridian Atlantic | July 8, 2024
10 | Calderwood & Harkness LLP | Buyer's Legal Fees | 32,500,000 | Ridgeway Capital Markets, New York, NY | ABA 021000089 | Calderwood & Harkness LLP — Client Trust Account | XXXX-XXXX-1155 | Matter 1041-00003 — Legal Fees — Cloudium Acquisition | Harrison Wexford / Calderwood & Harkness LLP | July 8, 2024
11 | Various Expense Payees | Remaining Transaction Expenses (multiple wires) | 96,100,000 | Various per individual wire instructions | Various | Various | Various | Matter 1041-00003 — Transaction Expenses — See Expense Detail tab | Andrew Fitzpatrick / Calderwood & Harkness LLP | July 8, 2024
TOTAL OUTGOING WIRES (Cash) | 7,188,944,048
[sheet: Closing Sequence]
Step No. | Estimated Time (ET) | Action | Responsible Party | Prerequisite / Condition | Amount ($) | Status / Confirmation
1 | 8:00 AM | Confirm all closing conditions satisfied or waived; confirm no injunction or restraining order | Calderwood & Harkness LLP (Harrison Wexford) / Ridgeway Phelps & Sato LLP (Catherine Answorth) | Officer's Certificates of Cloudium and Buyer/Merger Sub delivered; Secretary's Certificates delivered; FIRPTA Certificate delivered; all regulatory clearances confirmed (HSR March 11, 2024; CMA April 3, 2024; final regulatory condition July 2, 2024) | Pending
2 | 8:30 AM | Deliver executed Officer's Certificate of Cloudium (bring-down of representations and covenants) | Cloudium (Nadia Chowdhury / Ridgeway Phelps & Sato LLP) | Step 1 confirmed | Pending
3 | 8:30 AM | Deliver executed Officer's Certificate of Buyer / Merger Sub | Solara / Stratos Merger Sub Inc. (Calderwood & Harkness LLP) | Step 1 confirmed | Pending
4 | 8:30 AM | Deliver Secretary's Certificates (Cloudium, Merger Sub, Fund VI) | Respective parties | Step 1 confirmed | Pending
5 | 8:30 AM | Deliver Solvency Certificate (post-merger surviving entity) | CFO of surviving entity (Sienna Whitfield) | Step 1 confirmed | Pending
6 | 8:30 AM | Deliver FIRPTA Certificate (Section 1445/897) | Cloudium | Step 1 confirmed | Pending
7 | 8:30 AM | Deliver Good Standing Certificates (Merger Sub — DE; Fund VI — DE) | Calderwood & Harkness LLP | Obtained July 3, 2024 from Delaware Secretary of State | Pending
8 | 9:00 AM | Deliver closing legal opinions (C&H to Meridian Atlantic; C&H to Cobalt Trust; C&H to Cloudium) | Calderwood & Harkness LLP | Steps 1–7 confirmed | Pending
9 | 9:00 AM | Deliver R&W Insurance No-Claims Declaration | Solara (signed by authorized officer) | Step 1 confirmed; Northfield Assurance Policy No. NFA-TRI-2024-00487 | Pending
10 | 9:30 AM | Fund VI wires equity contribution to Merger Sub funding account | Solara Digital Infrastructure Fund VI LP (EIN 87-4523190) | Steps 1–9 confirmed | 2,832,888,096 | Pending
11 | 9:30 AM | Meridian Atlantic funds Term Loan B to Borrower proceeds account | Meridian Atlantic Bank, N.A. / Ironclad Capital Markets LLC | Credit Agreement executed; Steps 1–9 confirmed | 3,740,000,000 | Pending
12 | 10:00 AM | Wire merger consideration to Cascade Corporate Services Inc. (paying agent) | Stratos Merger Sub Inc. / Fund VI | Steps 10–11 confirmed (equity and debt funded) | 5,639,944,048 | Pending
13 | 10:00 AM | Wire payoff amount ($620,000,000 TL + $200,000,000 Revolver) to Atlas Commercial Lending Corp. | Stratos Merger Sub Inc. / Fund VI | Per Payoff Letter dated July 5, 2024; steps 10–11 confirmed | 820,000,000 | Pending
14 | 10:00 AM | Wire $544,000,000 indemnity escrow to Cobalt Trust Company | Stratos Merger Sub Inc. / Fund VI | Per Escrow Agreement; steps 10–11 confirmed | 544,000,000 | Pending
15 | 10:00 AM | Wire transaction expense payments to advisors and service providers | Stratos Merger Sub Inc. / Fund VI | Steps 10–11 confirmed; per Expense Detail tab | 185,000,000 | Pending
16 | 10:30 AM | Confirm receipt of all wire transfers (paying agent, payoff, escrow, expenses) | Calderwood & Harkness LLP / Ridgeway Phelps & Sato LLP / All receiving parties | Wires sent in Steps 12–15 | Pending
17 | 11:00 AM | Atlas Commercial Lending Corp. confirms payoff; releases liens; authorizes UCC-3 termination filings | Atlas Commercial Lending Corp. / Calderwood & Harkness LLP | Step 13 wire received and confirmed | Pending
18 | 11:00 AM | Cobalt Trust Company confirms escrow funding receipt | Cobalt Trust Company (Laura Ng) | Step 14 wire received | 544,000,000 | Pending
19 | 11:30 AM | File UCC-3 Termination Statements in all applicable jurisdictions (Atlas liens) | Calderwood & Harkness LLP (Andrew Fitzpatrick) | Step 17 confirmed | Pending
20 | 11:30 AM | Execute and deliver Guarantee and Collateral Agreement and Intercreditor Agreement | All parties to Credit Agreement | Step 11 confirmed; Credit Agreement executed | Pending
21 | 11:59 PM | File Certificate of Merger with the Delaware Secretary of State — Effective Time 11:59 PM ET | Calderwood & Harkness LLP | All prior steps confirmed; all closing deliverables exchanged | Pending
22 | 11:59 PM | Merger effective: Stratos Merger Sub Inc. merges with and into Cloudium Technologies plc; Cloudium survives as wholly owned subsidiary of Fund VI | By operation of law | Step 21 — filing accepted | Pending
23 | Post-Effective Time | Adopt Surviving Corporation Certificate of Incorporation and Bylaws; appoint initial directors and officers of surviving corporation by written consent | Solara / Fund VI | Step 22 effective | Pending
24 | July 10, 2024 | File Form 25 with Nasdaq (delisting of CLDM); mail Letters of Transmittal to former stockholders via Cascade Corporate Services Inc.; mail appraisal rights notices under DGCL § 262 | Calderwood & Harkness LLP / Cascade Corporate Services Inc. / Ridgeway Phelps & Sato LLP | Step 22 effective | Pending
25 | July 30, 2024 | File Form 15 with SEC (deregistration and suspension of reporting obligations) | Calderwood & Harkness LLP / Surviving Entity | Form 25 effective (10 days after filing); confirmation of delisting | Pending