SolarCity is selling stock, notes for up to USD 223.5m

Aug 30, 2013 - US firm SolarCity Corp (NASDAQ:SCTY) is selling 2.8 million shares and USD 100 million (EUR 75.5m) worth of convertibles notes in two separate offerings that could fetch up to USD 223.5 million in proceeds.

According to the solar system integrator’s filing with the US Securities and Exchange Commission, it will use the proceeds for general corporate purposes, such as working capital, capital expenditures, potential acquisitions and strategic transactions.

Under the share issue, SolarCity is offering 2.8 million shares at the proposed maximum price of USD 33.69 per share. It has also provided an over-allotment option of 420,000 shares. Company chairman Elon Musk and CEO Lyndon R Rive plan to buy as many as 560,000 shares in the offering, SolarCity noted.

The convertible notes sale involves USD 100 million of notes maturing in 2018. The over-allotment option here is USD 15 million.

Goldman, Sachs & Co, Credit Suisse (VTX:CSGN) and BofA Merrill Lynch have been appointed as underwriters of both offerings.

Earlier in August SolarCity said it had narrowed its second-quarter 2013 net loss to USD 23.9 million from USD 25.8 million a year back. It saw its revenues slip to USD 37.9 million from USD 46.6 million. SolarCity confirmed its previous expectations for 270 MW of installations in 2013.

(USD 1 = EUR 0.755)

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