Residential solar provider, Vivint Solar has raised $303 million in financing in two major transactions led by Bank of America Merrill Lynch. It closed a $203 million fixed rate, 18-year term debt facility with four institutional investors allowing it install 214 megawatts of solar across 30,000 homes. It also closed another $100 million investment deal with Bank of America allowing it to install more than 66 megawatts of residential solar systems nationwide with that financing.
"This is a milestone transaction for Vivint Solar that demonstrates its access to an additional class of term debt lenders," said Thomas Plagemann, chief commercial officer and head of capital markets for Vivint Solar. "After closing the $313 million syndicated bank term loan facility in August 2016, this transaction completes the first full 'turn' of capital in our $375 million aggregation facility and validates the debt optimization strategy we outlined earlier last year.”
Vivint Solar has been raising large funds to support its solar rooftop projects across the US since exiting from SunEdison and its TerraForm Power acquisition attempt for $2.2 billion in 2015. While SunEdison filed for bankruptcy, Vivint Solar pulled out of the acquisition early and brought SunEdison to court seeking damages for breach of contract promises.
Vivint Solar has continued to recover and growth throughout 2016 due to its ability to create multimillion dollar financing agreements and expansion of its residential solar services. Access to publicly traded funds allow Vivint Solar to expand its ability to enter multi-state rooftop solar markets and compete with SolarCity, which went public in 2012.
"We are thrilled that Bank of America Merrill Lynch continues to support Vivint Solar and residential solar energy development," said Dana Russell, chief financial officer for Vivint Solar. "They have been a tremendous partner to us since our IPO in the fall of 2014.”Tweet