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Bank of America helps Vivint Solar raise $303m

Still rebounding from a botched buyout by SunEdison, the residential solar provider agreed to a $203m debt agreement and a $100m tax equity investment.

Blackstone-owned residential solar provider Vivint Solar closed on $303 million of debt and equity financing from Bank of America Merrill Lynch and four institutional investors.

The debt facility consists of a fixed-rate, 18-year term agreement totalling $203 million from four undisclosed institutional investors. The loans are backed by money that is generated from funds owning 214MW of solar contracts, which is around 30,000 systems.

Bank of America Merrill Lynch acted as the lead arranger for the transaction. Vivint Solar said in a statement that a portion of the proceeds will be used to repay earlier loans.

BoA also committed an additional $100 million in tax equity financing, which Vivint Solar said would allow the installation of over 66MWs of residential solar systems.

“This is a milestone transaction for Vivint Solar that demonstrates its access to an additional class of term debt lenders,” Vivint Solar chief financial officer Dana Russell said.

The company launched in 2011 and helped revolutionise the US solar industry by deploying financing platforms to install micro-solar projects with no upfront costs, having customers repay installations through power purchase agreements (PPA) based on the energy produced.

Rebounding from a botched $1.9 billion buyout from now bankrupt SunEdison last March, it has agreed to multiple debt financing arrangements over the past year. Shortly after the deal was called off, Vivint Solar picked up a $200 million lifeline from undisclosed lenders. In August, Vivint Solar agreed to a $313 million, five-year term loan facility from lenders including Investec Bank and NY Green Bank.