Vivint Solar closed a $325 million revolving warehouse facility, which refinanced the aggregation credit facility that was set to mature in 2020
The new warehouse reduces the cost of debt by 87.5 basis points and materially increases the amount of upfront proceeds as a percentage of future contractual cash flows.
Five lenders are involved in the deal, which includes an accordion feature that provides the ability for VSLR to upsize the facility to $400 million. Lenders in the group include Bank of America Merrill Lynch, CitiBank, affiliates of Credit Suisse, KeyBank and Silicon Valley Bank.
“This transaction represents a meaningful improvement in our ability to access debt funding at a higher advance rate, at a lower cost, and earlier in the lifecycle of our assets. Higher advance rates and earlier funding reduces the need for working capital in the business and brings our funding more in line with when we incur creation costs,” said Thomas Plagemann, CCO and head of Capital Markets
Vivint Solar operates in 23 states and has raised more than $4.9 billion in cash equity, tax equity and debt since its inception in 2011. Vivint Solar is a full-service residential solar provider.