Vivint Solar Inc., the second-largest U.S. rooftop solar company, is seeking a financing package of about $300 million to help grow its operations, according to two people familiar with the deal.
Investec Plc is leading the five-year deal, according to the people, who asked not to be identified because they’re not authorized to discuss it publicly. The funds are expected to refinance an existing credit line, recycling capital to support growth. A spokeswoman for the Lehi, Utah-based solar company declined to comment Monday.
The funds are expected to help Vivint meet its April forecast of installing 260 MW of rooftop solar systems this year, up 12 percent from 2015.
In March, Vivint said it was seeking to raise “substantial” amounts of cash after its proposed acquisition by now-bankrupt clean-energy giant SunEdison Inc. fell apart. Vivint scrapped the acquisition that month after SunEdison missed some deadlines. Vivint has described the failed deal as a “disruption,” noting that being an about-to-be purchased company hindered operations and slowed its ability to raise new funds.
Since then, Vivint has arranged several financing deals, including $200 million in term loans from investment funds advised by Highbridge Principal Strategies LLC, a $200 million loan to finance residential power projects from an unidentified lender and $75 million in tax-equity financing from an undisclosed investor. In tax-equity deals, developers with little or no profit sell tax credits they can’t use to investors, which apply the benefits to their own tax bills.
Investec is an active lender to rooftop solar companies, including to Sunrun Inc. and Spruce Finance Inc.
©2016 Bloomberg News
Lead image credit: Marufish | Flickr