Vivint Solar closed a $200 million revolving asset-based loan facility.

The facility will help fund the company’s continued growth in 2020 and beyond by allowing Vivint Solar to finance the purchase of safe harbor equipment and receive attractive advance rates on projects throughout the development life cycle.

Vivint Solar intends that the equipment purchased in 2019 and funded in part through this asset financing facility will allow solar energy systems to qualify for a 30% Federal investment tax credit (ITC) by satisfying the 5% safe harbor method outlined in IRS notice 2018-59. In addition, proceeds from the Asset Financing Facility will be used by the company to refinance its existing working capital credit facility that was set to mature in 2020.

“This transaction represents an evolution of how we finance our working capital needs and replaces our current working capital facility which matures next March. The innovative structure best addresses the working capital needs of our rapidly-growing business while also providing critical funding for the purchase of safe harbor equipment at attractive borrowing rates” said Vivint Solar’s Chief Commercial Officer and Head of Capital Markets, Thomas Plagemann.

The lenders include affiliates of Bank of America Securities and Credit Suisse.

Vivint Solar operates in 22 states and has raised more than $4.9 billion in cash equity, tax equity and debt since its inception in 2011.