1042-00001 · Brightfield Cloud Services Inc · Closing

funds-flow-memorandum.xlsx DOCUMENT Finance & Banking

3 / 12 ← → ✕

[sheet: Cover & Summary]

Field	Value
Document Title	Funds Flow Memorandum
Transaction	Senior Secured Term Loan — $35,000,000
Borrower	Brightfield Cloud Services Inc.
Borrower Address	4200 Lone Star Parkway, Suite 800, Austin, TX 78731
Borrower EIN	84-3291057
Lender / Administrative Agent	Pinnacle National Bank, N.A.
Lender Address	600 Lexington Avenue, 35th Floor, New York, NY 10022
Lender ABA Routing Number	021-405-887
Collateral Agent	Meridian Whitcomb LLC
Guarantor	Solara Holdings Group LLC
Governing Agreement	Term Loan Agreement dated July 28, 2022
Closing / Funding Date	August 12, 2022
Total Loan Proceeds	$35,000,000.00
Total Disbursements	$35,000,000.00
Variance	$0.00
Prepared By	Calderwood & Harkness LLP
C&H Matter Number	1042-00001
C&H Contact — Lead Associate	Sophie Tremblay, Calderwood & Harkness LLP, One Liberty Plaza, 42nd Floor, New York, NY 10006
C&H Contact — Working Associate	Daniel Obi, Calderwood & Harkness LLP, 300 West 6th Street, Suite 2100, Austin, TX 78701
Reviewed By	Ian Blackwood, Responsible Partner, Calderwood & Harkness LLP
Date of Memorandum	August 12, 2022
Lender's Counsel	Wainwright & Pryor LLP (W&P Matter No. 1042-00001)
Pinnacle Internal Credit Approval No.	TLG-2022-05118
Note	All wire transfers to be initiated by Pinnacle National Bank, N.A. on August 12, 2022. Funds to be sent via federal wire (Fedwire). All amounts are in U.S. Dollars.

[sheet: Funds Flow Detail]

Item No.

Description / Purpose

Recipient

Recipient Address

Receiving Bank

Receiving Bank ABA Routing No.

Account Name

Account Number

Reference / Memo

Responsible Contact

Contact Phone

Contact Email

Amount

Sub-Detail

Payoff of Existing Revolving Credit Facility (Principal: $8,200,000.00 + Accrued Interest: $37,422.00)

Ridgeline Commercial Bank

1500 Congress Avenue, Suite 600, Austin, TX 78701

Ridgeline Commercial Bank

[Per Ridgeline payoff letter]

Brightfield Cloud Services Inc. — Revolving Credit Facility Payoff

[Per Ridgeline payoff letter]

Full payoff of $15,000,000 Revolving Credit Facility dated October 15, 2020; outstanding principal $8,200,000 plus accrued interest of $37,422 through August 12, 2022; Ridgeline to file UCC-3 termination statements upon receipt

Renata Vasquez, VP, Commercial Lending

[Phone per payoff letter]

[Email per payoff letter]

$8,237,422.00

Principal: $8,200,000.00; Accrued Interest: $37,422.00

Upfront Fee — Pinnacle National Bank, N.A. (1.00% of $35,000,000 commitment)

Pinnacle National Bank, N.A.

600 Lexington Avenue, 35th Floor, New York, NY 10022

Pinnacle National Bank, N.A.

021-405-887

Pinnacle National Bank — Fee Account

[Per Pinnacle wire instructions]

Upfront fee per Section [●] of Term Loan Agreement dated July 28, 2022

Thomas Whitford, SVP, Technology Lending Group

[Phone]

[Email]

$350,000.00

1.00% × $35,000,000

Dallas Data Center Build-Out — Project Account

Brightfield Cloud Services Inc.

2700 Stemmons Freeway, Building C, Dallas, TX 75207 (project site)

Pinnacle National Bank, N.A.

021-405-887

Brightfield Cloud Services Inc. — Dallas Data Center Project Account

[Project account number — per BCS instructions]

Use of proceeds: Dallas, TX regional cloud data center construction and build-out

Priya Ramanathan, CFO, Brightfield Cloud Services Inc.

[Phone]

[Email]

$11,500,000.00

Phoenix Data Center Build-Out — Project Account

Brightfield Cloud Services Inc.

1850 West Buckeye Road, Suite 100, Phoenix, AZ 85009 (project site)

Pinnacle National Bank, N.A.

021-405-887

Brightfield Cloud Services Inc. — Phoenix Data Center Project Account

[Project account number — per BCS instructions]

Use of proceeds: Phoenix, AZ regional cloud data center construction and build-out

Priya Ramanathan, CFO, Brightfield Cloud Services Inc.

[Phone]

[Email]

$9,800,000.00

Hardware Procurement — Proprietary Server Appliances

Brightfield Cloud Services Inc.

4200 Lone Star Parkway, Suite 800, Austin, TX 78731

Pinnacle National Bank, N.A.

021-405-887

Brightfield Cloud Services Inc. — Hardware Procurement Account

[Procurement account number — per BCS instructions]

Use of proceeds: Procurement of proprietary server hardware for data center deployment

Priya Ramanathan, CFO, Brightfield Cloud Services Inc.

[Phone]

[Email]

$3,500,000.00

Working Capital and General Corporate Purposes — BCS Operating Account

Brightfield Cloud Services Inc.

4200 Lone Star Parkway, Suite 800, Austin, TX 78731

Pinnacle National Bank, N.A.

021-405-887

Brightfield Cloud Services Inc. — Operating Account

7841-0029-3356

Use of proceeds: Working capital and general corporate purposes; account established at closing at Pinnacle National Bank, N.A.

Priya Ramanathan, CFO, Brightfield Cloud Services Inc.

[Phone]

[Email]

$1,612,578.00

TOTAL DISBURSEMENTS

$35,000,000.00

[sheet: Reconciliation]

SOURCES OF FUNDS

Source	Term Loan Proceeds — Pinnacle National Bank, N.A.	$35,000,000.00
Total Sources	$35,000,000.00

USES OF FUNDS

Use	1. Ridgeline Commercial Bank — Revolving Credit Facility Payoff (Principal)	$8,200,000.00
Use	Ridgeline Commercial Bank — Accrued Interest through August 12, 2022	$37,422.00
Use	Subtotal — Ridgeline Payoff	$8,237,422.00
Use	2. Upfront Fee — Pinnacle National Bank, N.A. (1.00%)	$350,000.00
Use	3. Dallas Data Center Build-Out	$11,500,000.00
Use	4. Phoenix Data Center Build-Out	$9,800,000.00
Use	5. Hardware Procurement (Proprietary Server Appliances)	$3,500,000.00
Use	6. Working Capital / General Corporate — BCS Operating Account (Acct. 7841-0029-3356)	$1,612,578.00
Total Uses	$35,000,000.00
NET VARIANCE	Total Sources minus Total Uses	$0.00

[sheet: Wire Instructions]

Wire No.

Recipient Entity

Recipient Role

Receiving Bank Name

Receiving Bank Address

ABA Routing Number

SWIFT Code

Account Name

Account Number

Reference Line

Amount

Confirmation Contact Name

Confirmation Contact Title

Confirmation Contact Phone

Confirmation Contact Email

Ridgeline Commercial Bank

Existing Lender — Revolving Credit Facility Payoff

Ridgeline Commercial Bank

1500 Congress Avenue, Suite 600, Austin, TX 78701

[Per payoff letter]

Brightfield Cloud Services Inc. — Revolver Payoff

[Per payoff letter]

Full payoff per payoff letter dated [●], 2022; Revolving Credit Agreement dated October 15, 2020

$8,237,422.00

Renata Vasquez

VP, Commercial Lending

[Phone per payoff letter]

[Email per payoff letter]

Pinnacle National Bank, N.A.

Lender — Upfront Fee

Pinnacle National Bank, N.A.

600 Lexington Avenue, 35th Floor, New York, NY 10022

021-405-887

[Pinnacle SWIFT]

Pinnacle National Bank — Fee Account

[Per Pinnacle instructions]

Upfront fee (1.00%) — Term Loan Agreement dated July 28, 2022; Credit Approval No. TLG-2022-05118

$350,000.00

Thomas Whitford

SVP, Technology Lending Group

[Phone]

[Email]

Brightfield Cloud Services Inc.

Borrower — Dallas Data Center Project Account

Pinnacle National Bank, N.A.

600 Lexington Avenue, 35th Floor, New York, NY 10022

021-405-887

[Pinnacle SWIFT]

Brightfield Cloud Services Inc. — Dallas DC Project

[Project account no.]

Dallas data center build-out — 2700 Stemmons Freeway, Building C, Dallas, TX 75207

$11,500,000.00

Priya Ramanathan

CFO, Brightfield Cloud Services Inc.

[Phone]

[Email]

Brightfield Cloud Services Inc.

Borrower — Phoenix Data Center Project Account

Pinnacle National Bank, N.A.

600 Lexington Avenue, 35th Floor, New York, NY 10022

021-405-887

[Pinnacle SWIFT]

Brightfield Cloud Services Inc. — Phoenix DC Project

[Project account no.]

Phoenix data center build-out — 1850 West Buckeye Road, Suite 100, Phoenix, AZ 85009

$9,800,000.00

Priya Ramanathan

CFO, Brightfield Cloud Services Inc.

[Phone]

[Email]

Brightfield Cloud Services Inc.

Borrower — Hardware Procurement Account

Pinnacle National Bank, N.A.

600 Lexington Avenue, 35th Floor, New York, NY 10022

021-405-887

[Pinnacle SWIFT]

Brightfield Cloud Services Inc. — Hardware Procurement

[Procurement account no.]

Proprietary server appliance procurement

$3,500,000.00

Priya Ramanathan

CFO, Brightfield Cloud Services Inc.

[Phone]

[Email]

Brightfield Cloud Services Inc.

Borrower — Operating Account (Working Capital & General Corporate)

Pinnacle National Bank, N.A.

600 Lexington Avenue, 35th Floor, New York, NY 10022

021-405-887

[Pinnacle SWIFT]

Brightfield Cloud Services Inc. — Operating Account

7841-0029-3356

Working capital and general corporate purposes

$1,612,578.00

Priya Ramanathan

CFO, Brightfield Cloud Services Inc.

[Phone]

[Email]

[sheet: Approvals & Acknowledgments]

Role	Entity	Name	Title	Signature Line	Date
Borrower	Brightfield Cloud Services Inc.	Priya Ramanathan	Chief Financial Officer	_______________________	August 12, 2022
Borrower	Brightfield Cloud Services Inc.	Marcus Elliston	Chief Executive Officer	_______________________	August 12, 2022
Lender / Administrative Agent	Pinnacle National Bank, N.A.	Thomas Whitford	Senior Vice President, Technology Lending Group	_______________________	August 12, 2022
Lender — Credit Approval	Pinnacle National Bank, N.A.	Angela Morreau	Vice President, Credit Risk	_______________________	August 12, 2022
Collateral Agent	Meridian Whitcomb LLC	Laura Desmond	Vice President, Agency Services	_______________________	August 12, 2022
Borrower's Counsel	Calderwood & Harkness LLP	Ian Blackwood	Partner, Banking & Finance	_______________________	August 12, 2022
Lender's Counsel	Wainwright & Pryor LLP	Gregory Fontaine	Partner, Banking & Finance	_______________________	August 12, 2022

[sheet: Cover & Summary]
Field | Value
Document Title | Funds Flow Memorandum
Transaction | Senior Secured Term Loan — $35,000,000
Borrower | Brightfield Cloud Services Inc.
Borrower Address | 4200 Lone Star Parkway, Suite 800, Austin, TX 78731
Borrower EIN | 84-3291057
Lender / Administrative Agent | Pinnacle National Bank, N.A.
Lender Address | 600 Lexington Avenue, 35th Floor, New York, NY 10022
Lender ABA Routing Number | 021-405-887
Collateral Agent | Meridian Whitcomb LLC
Guarantor | Solara Holdings Group LLC
Governing Agreement | Term Loan Agreement dated July 28, 2022
Closing / Funding Date | August 12, 2022
Total Loan Proceeds | $35,000,000.00
Total Disbursements | $35,000,000.00
Variance | $0.00
Prepared By | Calderwood & Harkness LLP
C&H Matter Number | 1042-00001
C&H Contact — Lead Associate | Sophie Tremblay, Calderwood & Harkness LLP, One Liberty Plaza, 42nd Floor, New York, NY 10006
C&H Contact — Working Associate | Daniel Obi, Calderwood & Harkness LLP, 300 West 6th Street, Suite 2100, Austin, TX 78701
Reviewed By | Ian Blackwood, Responsible Partner, Calderwood & Harkness LLP
Date of Memorandum | August 12, 2022
Lender's Counsel | Wainwright & Pryor LLP (W&P Matter No. 1042-00001)
Pinnacle Internal Credit Approval No. | TLG-2022-05118
Note | All wire transfers to be initiated by Pinnacle National Bank, N.A. on August 12, 2022. Funds to be sent via federal wire (Fedwire). All amounts are in U.S. Dollars.
[sheet: Funds Flow Detail]
Item No. | Description / Purpose | Recipient | Recipient Address | Receiving Bank | Receiving Bank ABA Routing No. | Account Name | Account Number | Reference / Memo | Responsible Contact | Contact Phone | Contact Email | Amount | Sub-Detail
1 | Payoff of Existing Revolving Credit Facility (Principal: $8,200,000.00 + Accrued Interest: $37,422.00) | Ridgeline Commercial Bank | 1500 Congress Avenue, Suite 600, Austin, TX 78701 | Ridgeline Commercial Bank | [Per Ridgeline payoff letter] | Brightfield Cloud Services Inc. — Revolving Credit Facility Payoff | [Per Ridgeline payoff letter] | Full payoff of $15,000,000 Revolving Credit Facility dated October 15, 2020; outstanding principal $8,200,000 plus accrued interest of $37,422 through August 12, 2022; Ridgeline to file UCC-3 termination statements upon receipt | Renata Vasquez, VP, Commercial Lending | [Phone per payoff letter] | [Email per payoff letter] | $8,237,422.00 | Principal: $8,200,000.00; Accrued Interest: $37,422.00
2 | Upfront Fee — Pinnacle National Bank, N.A. (1.00% of $35,000,000 commitment) | Pinnacle National Bank, N.A. | 600 Lexington Avenue, 35th Floor, New York, NY 10022 | Pinnacle National Bank, N.A. | 021-405-887 | Pinnacle National Bank — Fee Account | [Per Pinnacle wire instructions] | Upfront fee per Section [●] of Term Loan Agreement dated July 28, 2022 | Thomas Whitford, SVP, Technology Lending Group | [Phone] | [Email] | $350,000.00 | 1.00% × $35,000,000
3 | Dallas Data Center Build-Out — Project Account | Brightfield Cloud Services Inc. | 2700 Stemmons Freeway, Building C, Dallas, TX 75207 (project site) | Pinnacle National Bank, N.A. | 021-405-887 | Brightfield Cloud Services Inc. — Dallas Data Center Project Account | [Project account number — per BCS instructions] | Use of proceeds: Dallas, TX regional cloud data center construction and build-out | Priya Ramanathan, CFO, Brightfield Cloud Services Inc. | [Phone] | [Email] | $11,500,000.00
4 | Phoenix Data Center Build-Out — Project Account | Brightfield Cloud Services Inc. | 1850 West Buckeye Road, Suite 100, Phoenix, AZ 85009 (project site) | Pinnacle National Bank, N.A. | 021-405-887 | Brightfield Cloud Services Inc. — Phoenix Data Center Project Account | [Project account number — per BCS instructions] | Use of proceeds: Phoenix, AZ regional cloud data center construction and build-out | Priya Ramanathan, CFO, Brightfield Cloud Services Inc. | [Phone] | [Email] | $9,800,000.00
5 | Hardware Procurement — Proprietary Server Appliances | Brightfield Cloud Services Inc. | 4200 Lone Star Parkway, Suite 800, Austin, TX 78731 | Pinnacle National Bank, N.A. | 021-405-887 | Brightfield Cloud Services Inc. — Hardware Procurement Account | [Procurement account number — per BCS instructions] | Use of proceeds: Procurement of proprietary server hardware for data center deployment | Priya Ramanathan, CFO, Brightfield Cloud Services Inc. | [Phone] | [Email] | $3,500,000.00
6 | Working Capital and General Corporate Purposes — BCS Operating Account | Brightfield Cloud Services Inc. | 4200 Lone Star Parkway, Suite 800, Austin, TX 78731 | Pinnacle National Bank, N.A. | 021-405-887 | Brightfield Cloud Services Inc. — Operating Account | 7841-0029-3356 | Use of proceeds: Working capital and general corporate purposes; account established at closing at Pinnacle National Bank, N.A. | Priya Ramanathan, CFO, Brightfield Cloud Services Inc. | [Phone] | [Email] | $1,612,578.00
TOTAL DISBURSEMENTS | $35,000,000.00
[sheet: Reconciliation]
Category | Description | Amount
SOURCES OF FUNDS
Source | Term Loan Proceeds — Pinnacle National Bank, N.A. | $35,000,000.00
Total Sources | $35,000,000.00
USES OF FUNDS
Use | 1. Ridgeline Commercial Bank — Revolving Credit Facility Payoff (Principal) | $8,200,000.00
Use |    Ridgeline Commercial Bank — Accrued Interest through August 12, 2022 | $37,422.00
Use |    Subtotal — Ridgeline Payoff | $8,237,422.00
Use | 2. Upfront Fee — Pinnacle National Bank, N.A. (1.00%) | $350,000.00
Use | 3. Dallas Data Center Build-Out | $11,500,000.00
Use | 4. Phoenix Data Center Build-Out | $9,800,000.00
Use | 5. Hardware Procurement (Proprietary Server Appliances) | $3,500,000.00
Use | 6. Working Capital / General Corporate — BCS Operating Account (Acct. 7841-0029-3356) | $1,612,578.00
Total Uses | $35,000,000.00
NET VARIANCE | Total Sources minus Total Uses | $0.00
[sheet: Wire Instructions]
Wire No. | Recipient Entity | Recipient Role | Receiving Bank Name | Receiving Bank Address | ABA Routing Number | SWIFT Code | Account Name | Account Number | Reference Line | Amount | Confirmation Contact Name | Confirmation Contact Title | Confirmation Contact Phone | Confirmation Contact Email
1 | Ridgeline Commercial Bank | Existing Lender — Revolving Credit Facility Payoff | Ridgeline Commercial Bank | 1500 Congress Avenue, Suite 600, Austin, TX 78701 | [Per payoff letter] | [Per payoff letter] | Brightfield Cloud Services Inc. — Revolver Payoff | [Per payoff letter] | Full payoff per payoff letter dated [●], 2022; Revolving Credit Agreement dated October 15, 2020 | $8,237,422.00 | Renata Vasquez | VP, Commercial Lending | [Phone per payoff letter] | [Email per payoff letter]
2 | Pinnacle National Bank, N.A. | Lender — Upfront Fee | Pinnacle National Bank, N.A. | 600 Lexington Avenue, 35th Floor, New York, NY 10022 | 021-405-887 | [Pinnacle SWIFT] | Pinnacle National Bank — Fee Account | [Per Pinnacle instructions] | Upfront fee (1.00%) — Term Loan Agreement dated July 28, 2022; Credit Approval No. TLG-2022-05118 | $350,000.00 | Thomas Whitford | SVP, Technology Lending Group | [Phone] | [Email]
3 | Brightfield Cloud Services Inc. | Borrower — Dallas Data Center Project Account | Pinnacle National Bank, N.A. | 600 Lexington Avenue, 35th Floor, New York, NY 10022 | 021-405-887 | [Pinnacle SWIFT] | Brightfield Cloud Services Inc. — Dallas DC Project | [Project account no.] | Dallas data center build-out — 2700 Stemmons Freeway, Building C, Dallas, TX 75207 | $11,500,000.00 | Priya Ramanathan | CFO, Brightfield Cloud Services Inc. | [Phone] | [Email]
4 | Brightfield Cloud Services Inc. | Borrower — Phoenix Data Center Project Account | Pinnacle National Bank, N.A. | 600 Lexington Avenue, 35th Floor, New York, NY 10022 | 021-405-887 | [Pinnacle SWIFT] | Brightfield Cloud Services Inc. — Phoenix DC Project | [Project account no.] | Phoenix data center build-out — 1850 West Buckeye Road, Suite 100, Phoenix, AZ 85009 | $9,800,000.00 | Priya Ramanathan | CFO, Brightfield Cloud Services Inc. | [Phone] | [Email]
5 | Brightfield Cloud Services Inc. | Borrower — Hardware Procurement Account | Pinnacle National Bank, N.A. | 600 Lexington Avenue, 35th Floor, New York, NY 10022 | 021-405-887 | [Pinnacle SWIFT] | Brightfield Cloud Services Inc. — Hardware Procurement | [Procurement account no.] | Proprietary server appliance procurement | $3,500,000.00 | Priya Ramanathan | CFO, Brightfield Cloud Services Inc. | [Phone] | [Email]
6 | Brightfield Cloud Services Inc. | Borrower — Operating Account (Working Capital & General Corporate) | Pinnacle National Bank, N.A. | 600 Lexington Avenue, 35th Floor, New York, NY 10022 | 021-405-887 | [Pinnacle SWIFT] | Brightfield Cloud Services Inc. — Operating Account | 7841-0029-3356 | Working capital and general corporate purposes | $1,612,578.00 | Priya Ramanathan | CFO, Brightfield Cloud Services Inc. | [Phone] | [Email]
[sheet: Approvals & Acknowledgments]
Role | Entity | Name | Title | Signature Line | Date
Borrower | Brightfield Cloud Services Inc. | Priya Ramanathan | Chief Financial Officer | _______________________ | August 12, 2022
Borrower | Brightfield Cloud Services Inc. | Marcus Elliston | Chief Executive Officer | _______________________ | August 12, 2022
Lender / Administrative Agent | Pinnacle National Bank, N.A. | Thomas Whitford | Senior Vice President, Technology Lending Group | _______________________ | August 12, 2022
Lender — Credit Approval | Pinnacle National Bank, N.A. | Angela Morreau | Vice President, Credit Risk | _______________________ | August 12, 2022
Collateral Agent | Meridian Whitcomb LLC | Laura Desmond | Vice President, Agency Services | _______________________ | August 12, 2022
Borrower's Counsel | Calderwood & Harkness LLP | Ian Blackwood | Partner, Banking & Finance | _______________________ | August 12, 2022
Lender's Counsel | Wainwright & Pryor LLP | Gregory Fontaine | Partner, Banking & Finance | _______________________ | August 12, 2022

[sheet: Cover & Summary]

SOURCES OF FUNDS

USES OF FUNDS

Record

Parties

Dates

Amounts