Vivint Solar locks USD 545m in debt as post-COVID measure

US residential solar company Vivint Solar (NYSE:VSLR) has obtained USD 545 million (EUR 486.4m) in debt commitments in two deals that are aimed at boosting its liquidity.

The company said on Tuesday that the two loans create an implied all-in interest rate of around 4.4% on new assets originated. "These transactions raise a significant amount of liquidity against our existing assets, provide for future debt capacity, and demonstrate our ability to access the capital markets for financing at a competitive cost of capital as we navigate the impacts of COVID-19 to our business," said Thomas Plagemann, chief commercial officer and head of capital markets for Vivint Solar.

The first deal represents a USD-245-million increase to an existing multi-lender revolving warehouse facility from 2019 and will lift the facility’s margin to 3.1% without changing the maturity date or other material terms of the debt. The second one is for a USD-300-million hold-co loan facility provided by the Brookfield Infrastructure Debt Fund. The latter allows additional borrowings on future contracted cash flows of USD 100 million and will have an interest rate of 8%. It is due in three years.

BofA Securities Inc was the sole structurer and arranger for the hold-co loan.

Since its establishment in 2011, Utah-based Vivint Solar has raised more than USD 5.5 billion in cash equity, tax equity and debt financing. The solar installer operates in 22 states.

(USD 1.0 = EUR 0.893)

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