US residential solar company Vivint Solar (NYSE:VSLR) said today it has closed a USD-327-million (EUR 282m) innovative financing transaction for 95 MW of new solar installations.
The deal, described as the first of its kind in the residential solar industry, represents a multi-party forward flow funding arrangement that includes project-level debt, a levered tax equity partnership and the company's first cash equity investment. It provides up to USD 327 million in total funding commitments, with an aggregate value of about USD 410 million.
"The cash margin provided by this vehicle for a portion of our future PPA and lease assets is an important step to increase Vivint Solar's financial flexibility and to solidify a sustainable funding model for the business," said Vivint Solar's chief commercial officer and head of capital markets, Thomas Plagemann.
The transaction is expected to provide upfront proceeds of USD 3.37 per watt in addition to USD 0.41 per watt in retained value and renewal value.
Bank of America Merrill Lynch acted as sole structuring and placement agent for the cash equity and multi-draw term loan, and also acted as the sole tax equity investor. Hannon Armstrong (NYSE:HASI) took part as the structured cash equity investor.
Vivint Solar, which announced the deal on the same day it reported second-quarter results, noted it has recently closed a USD-50-million tax equity partnership with a new investor. The multi-party forward flow funding arrangement, in combination with the undrawn committed capital under the company's other tax equity partnerships, will provide funding for the installation of over 170 MW of residential solar systems.
(USD 1 = EUR 0.864)
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