LEHI, Utah, Aug. 4, 2016 /PRNewswire/ -- Vivint Solar (NYSE: VSLR), a leading U.S. residential solar provider, announced today it closed a $313 million term loan facility, which refinanced 11 tax equity funds that were part of the company's aggregation facility. The term loan facility provides back-leverage financing for a portfolio of 12 tax equity funds that own over 307 megawatts and 47,000 residential solar energy systems across 12 states. This syndicated credit facility provides an alternative to bond securitization.
"We are pleased to announce this next step in our financing strategy, which allows us to repay outstanding loans under our aggregation facility, increase advance rates, free up new borrowing capacity, raise incremental debt against SREC contracts and lock in attractive all-in borrowing rates," said Thomas Plagemann, Executive Vice President and Head of Capital Markets at Vivint Solar. "This new financing has a 5-year term, which is expected to exceed the projected flip dates for many of the 12 tax equity funds, and it enables us to continue our mission of making solar affordable for homeowners."
The transaction was arranged by Investec Bank plc, ING Capital LLC, Silicon Valley Bank and SunTrust Robinson Humphrey Inc. as joint bookrunners.
"We are excited to have successfully closed this deal for Vivint Solar. Growing liquidity in the syndicated loan market for residential solar companies was evidenced by the 1.5x oversubscription to this facility, which should give future borrowers confidence," said Ralph Cho, Co-Head of Power and Infrastructure Finance at Investec.
"We believe that the commercial bank market is a very accommodating market of execution for leading players in the power sector. Over time, we expect residential installers will find the bank market to be an attractive alternative to the securitization market," said Michael Pantelogianis, Co-Head of Power and Infrastructure Finance at Investec.
About Vivint Solar
Vivint Solar is a leading provider of distributed solar energy – electricity generated by a solar energy system installed at a customer's location – and one of the largest U.S. residential solar installers, according to the U.S. PV Leaderboard published by GTM Research. Vivint Solar's customers pay little to no money upfront, receive significant savings relative to utility generated electricity and continue to benefit from guaranteed energy prices over the 20-year term of their contracts. Vivint Solar finances, designs, installs, monitors and services the solar energy systems for its customers.
Vivint Solar currently operates in Arizona, California, Connecticut, Hawaii, Maryland, Massachusetts, New Mexico, New Jersey, New York, Pennsylvania, South Carolina Utah and Washington D.C., with new markets coming soon. For more information, visit www.vivintsolar.com, or follow @VivintSolar on Twitter.
Note on Forward-looking Statements
This press release contains forward-looking statements as defined within the meaning of the federal securities laws. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Forward-looking statements should not be read as a guarantee of future performance or results, and they will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. These statements are based on current expectations and assumptions regarding future events and business performance as of the date of this press release, and they are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements, including but not limited to the risks set forth in the registration statements and reports that Vivint Solar files with the U.S. Securities and Exchange Commission, which are available on the Investor Relations section of our website at www.vivintsolar.com. Vivint Solar does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
Vice President of Investor Relations
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SOURCE Vivint Solar