SAN MATEO, Calif., May 4, 2015 (GLOBE NEWSWIRE) -- SolarCity (NASDAQ: SCTY) today announced it has closed a $500 million financing aggregation facility with BofA Merrill Lynch, Credit Suisse and Deutsche Bank. The loan facility is expected to be the largest of its kind for distributed generation solar projects, and once deployed will finance more than 500 MW of solar power systems for homeowners, businesses and government organizations.
The facility will be secured by a portfolio of high quality, long-term customer systems and contracts. Through a novel structure, the financing will allow SolarCity to fund customer installations at an earlier stage in their development cycle, enabling a faster return of working capital to support the rapid growth in SolarCity's forecasted installations. When fully drawn, SolarCity will be able to finance installations for tens of thousands of homes and businesses throughout the United States. The clean energy provided by these systems will offset carbon dioxide emissions over the lifetime of the systems.
The revolving loan will permit fully developed systems to be continuously refinanced through ongoing securitizations or other capital markets solutions, further driving down the cost of a new system to residential, commercial and government customers, while providing committed capital for SolarCity to finance the design and installation of new systems.
"We are excited to announce this ground-breaking transaction for us and the industry," said SolarCity CFO Brad Buss. "By bringing three of the largest lenders together we have created what we believe to be the largest aggregation facility to date that will grow with our MW deployments over time, enabling us to continue to expand distributed generation solar at a rapid pace."
SolarCity (NASDAQ: SCTY) provides clean energy. The company has disrupted the century-old energy industry by providing renewable electricity directly to homeowners, businesses and government organizations for less than they spend on utility bills. SolarCity gives customers control of their energy costs to protect them from rising rates. The company makes solar energy easy by taking care of everything from design and permitting to monitoring and maintenance. SolarCity currently serves 17 states. Visit the company online at www.solarcity.com and follow the company on Facebook & Twitter.
This release contains forward-looking statements including, but not limited to, statements regarding the amount of megawatts expected to be financed under the facility and the plans to refinance the facility in the securitization market. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. You should read the section entitled "Risk Factors" in SolarCity's annual report on Form 10-K, which has been filed with the Securities and Exchange Commission and identifies certain of these and additional risks and uncertainties. We do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
CONTACT:Media Contact Molly Canales 650-963-5674 firstname.lastname@example.orgSource:SolarCity