Fresh off the termination of the SunEdison merger, the second-largest installer of residential solar in the United States is back to raising cash. Last Monday Vivint Solar closed on a US$200 million non-recourse term facility, which it says is the first in a series of fundraising activities it intends to undertake.
"Now that we are free from the constraints of the terminated SunEdison merger agreement, we have demonstrated our ability to rapidly access the capital markets for flexible, term-debt financing to support our continued growth, stated Vivint Solar Executive VP and Head of Capital Markets Thomas Plagemann.
The funding is available in two tranches: a short-term $75 million tranche at London Interbank Offered Rate (LIBOR) + 5.5%, and a second tranche of $125 million that can be drawn over time. The second tranche will be LIBOR + 8.0% and the term will extend to four years on the entire facility.
Vivint says that this flexible structure allows it to access an attractive advance rate and immediate liquidity, while still providing the option to fund growth beyond 2016. The company notes that it will use the funds for a variety of purposes, including funding new installations for customers but also additional business initiatives
Mercom Capital CEO Raj Prabhu notes that the rates are likely on the high side, which is far from surprising given the recent merger termination. I think access to capital was more important than interest rates, Prabhu told pv magazine. On the positive side, it is good that they are able to do that so fast.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: email@example.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.