LEHI, Utah, Aug. 7, 2018 /PRNewswire/ -- Vivint Solar,
Inc. (NYSE: VSLR), a leading full-service residential solar
provider, today announced it closed an innovative multi-party
forward flow funding arrangement that includes project-level debt,
a levered tax equity partnership, and the company's first cash
equity investment. The transaction provides up to $327 million in total funding commitments, with
an aggregate value of approximately $410
million, which is structured to generate upfront cash margin
for the company for approximately 95 megawatts of future solar
energy systems. This transaction is the first of its kind in
the residential solar industry that incorporates a multi-party
forward purchase commitment anchored by a levered tax equity
partnership.
Bank of America Merrill Lynch acted in multiple roles in this
transaction, including acting as sole structuring and placement
agent for the cash equity and multi-draw term loan. Additionally,
Bank of America Merrill Lynch acted as the sole tax equity
investor. Hannon Armstrong
(NYSE:HASI) is participating as the structured cash equity
investor.
"This delivers another landmark financing transaction for the
company in 2018, and we look forward to using this vehicle to
continue to accelerate solar power adoption across the country,"
said Vivint Solar CEO David Bywater.
"We are grateful for the continued support of Bank of America
Merrill Lynch in this transaction and the faith and trust that
investors continue to place in the future of our business.
Hannon Armstrong's programmatic
investment is a key piece of the capital structure in this
transaction."
"The cash margin provided by this vehicle for a portion of our
future PPA and lease assets is an important step to increase Vivint
Solar's financial flexibility and to solidify a sustainable funding
model for the business," said Vivint Solar's Chief Commercial
Officer and Head of Capital Markets, Thomas
Plagemann. "We expect similar results to selling
systems directly to homeowners, allowing us to continue focusing on
providing the products best suited for each homeowner."
Vivint Solar expects to raise approximately $3.37 per watt in upfront proceeds in addition to
$0.41 per watt in retained value and
renewal value. In addition, the company recently closed a
$50 million tax equity partnership
with a new investor. This multi-party forward flow funding
arrangement, together with the undrawn committed capital under
Vivint Solar's other tax equity partnerships, is estimated to
provide funding to install more than 170 megawatts of residential
solar energy systems.
"Providing solutions that aid in the adoption of renewable
energy is core to Bank of America Merrill Lynch's environmental
commitment. We value our relationship with Vivint Solar and
Hannon Armstrong and look forward to
continuing to grow the partnership," said Omer Farooq, Managing Director in Bank of
America Merrill Lynch's Cross Asset Solutions and Strategies
team.
"Hannon Armstrong is pleased to
support Vivint Solar with capital to facilitate the continued
expansion of their business," said Jeffrey
Eckel, President & CEO of Hannon
Armstrong.
About Vivint Solar
Vivint Solar is a leading full-service residential solar
provider in the United States.
With Vivint Solar, customers can power their homes with clean,
renewable energy and typically achieve significant financial
savings over time. Offering integrated residential solar solutions,
Vivint Solar designs and installs the solar energy systems for its
customers and offers monitoring and maintenance services. In
addition to being able to purchase a solar energy system outright,
customers may benefit from Vivint Solar's affordable, flexible
financing options, power purchase agreements, or lease agreements,
where available. For more information, visit
www.vivintsolar.com or follow @VivintSolar on Twitter.
Note on Forward-looking Statements
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934
and the Private Securities Litigation Reform Act of 1995, including
statements regarding Vivint Solar's installation capacity remaining
in tax equity funds, estimated retained value, and estimated
retained value per watt, including the assumptions related to the
calculation of the foregoing metrics. Forward-looking
statements are inherently subject to risks and uncertainties, some
of which cannot be predicted or quantified. Forward-looking
statements should not be read as a guarantee of future performance
or results, and they will not necessarily be accurate indications
of the times at, or by, which such performance or results will be
achieved, if at all. These statements are based on current
expectations and assumptions regarding future events and business
performance as of the date of this press release, and they 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. Although we believe
that the expectations reflected in the forward-looking statements
are reasonable, we cannot guarantee that the future results, levels
of activity, performance or events and circumstances reflected in
those statements will be achieved or will occur, and actual results
could differ materially from those anticipated or implied in the
forward-looking statements. Except as required by law, Vivint Solar
does not undertake and expressly disclaims any obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future developments or otherwise. You
should read the documents Vivint Solar has filed with the
Securities and Exchange Commission, or SEC, for more complete
information about the company. These documents are available on
both the EDGAR section of the SEC's website at www.sec.gov and the
Investor Relations section of the company's website at
investors.vivintsolar.com/.
Investor Contact
Rob Kain
Vice President of Investor Relations
855-842-1844
ir@vivintsolar.com
Press Contact
Helen Langan
Senior Director of Communications
385-202-6577
pr@vivintsolar.com
View original content with
multimedia:http://www.prnewswire.com/news-releases/vivint-solar-announces-innovative-industry-first-financing-vehicle-300693473.html
SOURCE Vivint Solar