Vivint Solar Closes $811 Million Debt Financing Deal

The debt’s two separate transactions will be used to repay Vivint Solar’s debt


Vivint Solar, a residential solar solutions provider in the United States, has announced the closing of $811 million of debt financing.

The amount was raised in two separate transactions. The first transaction of $466 million was achieved through capital markets issuance by its wholly-owned subsidiary, Vivint Solar Financing. Credit Suisse Securities (USA) LLC and Citigroup Global Markets, Inc. were the joint bookrunners and co-structuring agents in this agreement.

The second transaction of $345 million is a private issuance by Vivint Solar Financing IV, LLC. Credit Suisse acted as the arranger of the private placement.

“We are pleased to announce this new milestone in the evolution of our financing strategy, which optimizes and simplifies our term debt structure while allowing us to repay more expensive outstanding loans, increase advance rates, lock in attractive fixed borrowing rates and create incremental liquidity for the business,” Vivant Solar’s chief commercial officer Thomas Plagemann said in a media statement.

Vivint Solar intends to use this money to fully pay or reduce its existing debt. Accordingly, this transaction will reduce Vivint Solar’s blended total credit spreads by approximately 160 basis points.

The interest rate of 4.73 percent and 7.37 percent will apply for Series 2018-1 Class A Notes and Series 2018-1 Class B Notes respectively. October 30, 2018 is the anticipated date for repayment.

This provides a back-leverage financing to Vivint Solar on a wholly owned subsidiary that hold 575 MW of installed and over 86,000 residential solar energy systems.

Earlier, Mercom reported that Greenko Energy Holdings, a renewable energy project developer, signed a definitive agreement for raising primary equity of $447 million from an affiliate of GIC and a wholly owned entity by the Abu Dhabi Investment Authority (ADIA).

According to Mercom Capital Group’s newly released Q1 2018 Solar Funding and M&A Report, total corporate funding fell by 65 percent quarter-over-quarter (QoQ) to $2.0 billion from the $5.7 billion raised in Q4 2017.