SolarCity to sell USD 175m of convertible senior notes

June 18, 2013 - US solar solutions provider SolarCity Corp (NASDAQ:SCTY) said on Tuesday it plans to sell some USD 175 million (EUR 131m) of its convertible senior notes due 2018 through a registered public offering.

The aggregate principal amount could reach USD 201.25 million in the event that the underwriters, namely Goldman, Sachs & Co, Credit Suisse Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith Inc, make use of their over-allotment option in full.

The notes are convertible into SolarCity common shares with a par value of USD 0.0001 apiece. The interest and conversion rate along with other terms will be determined at the time of pricing. SolarCity will use the net proceeds for working capital, capital expenditures, potential acquisitions and strategic transactions.

The company also expects to lend up to 2.8 million own common shares to Goldman Sachs Financial Markets LP (GSFM) under a future agreement, the purpose of which would be to facilitate the planned notes offering. SolarCity anticipates to receive just a nominal lending fee from GSFM for the use of the borrowed shares.

(USD 1.0 = EUR 0.749)

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