SolarCity, one of the largest solar providers in the US, has received a $305 million equity injection from a fund advised by George Soros's hedge fund.
A private fund affiliated with Quantum Strategic Partners made the investment and was advised by Soros Fund Management. Quantum provided SolarCity, which is in the midst of a merger with Elon Musk's Tesla Motors, with a cash injection to fund a 230MW solar portfolio of residential, commercial and industrial projects spread across 15 states.
The transaction includes an 18-year loan syndicated to five institutional investors, according to SolarCity. Bank of America Merrill Lynch acted as the sole syndication and structuring agent for the transaction.
This is the second investment SolarCity has received this year and comes four months after John Hancock Life Insurance committed $227 million for a 201MW solar portfolio.
Solar said it was able to achieve a 7.4 percent pre-tax weighted average cost of capital for the transaction, “a significant improvement over its first cash equity transaction”.
In August, the company agreed to a $2.6 billion buyout offer from Tesla as part of Musk's plan to create a one-stop shop for clean energy products. The offer valued SolarCity at $25.37 per share. The deal included a 'go-shop' provision that allows SolarCity to consider offers from potential buyers for 45 days through 14 September.
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