June 5 (Renewables Now) - US residential solar company Vivint Solar (NYSE:VSLR) said on Tuesday it has completed a forward flow financing transaction worth USD 360 million (EUR 319.5m) to support up to 100 MW of new solar installations.
The deal, described by Vivint Solar as “innovative,” represents a multi-party forward flow funding arrangement that includes project-level debt, a levered tax equity partnership and a cash equity investment. It will provide the solar firm with up to USD 360 million in total funding commitments and is structured to generate upfront cash margin for between 95 MW and 100 MW of new photovoltaic (PV) projects.
"The innovative forward flow funding structure gives Vivint Solar financial flexibility through the cash margin provided by this vehicle for a portion of our future PPA and lease assets," said Thomas Plagemann, Vivint Solar's chief commercial officer and executive vice president of capital markets.
Bank of America Merrill Lynch served as sole structuring and placement agent for the cash equity and multi-draw term loan, and also was the sole tax equity investor. Hannon Armstrong (NYSE:HASI) took part as the structured cash equity investor.
Vivint Solar used this particular type of financing structure for the first time in the residential solar industry last August. It said at the time that the deal will facilitate supporting the installation of 95 MW of new PV systems.
(USD 1.0 = EUR 0.887)