Vivint Solar, Inc. today announced it closed a multi-party forward flow funding arrangement that includes project-level debt, a levered tax equity partnership, and a cash equity investment. The transaction provides up to $360 million in total funding commitments. It is structured to generate upfront cash margin for the company for approximately 95 to 100MW of future solar energy systems. The financing incorporates a multi-party forward purchase commitment anchored by a levered tax equity partnership, a financing structure used last year by Vivint Solar for the first time in the residential solar industry.
Bank of America Merrill Lynch acted as sole structuring and placement agent for the cash equity and multi-draw term loan as well as the sole tax equity investor. Hannon Armstrong participated as the structured cash equity investor.
"This transaction demonstrates investors' confidence in the continuing success of our business model, and its pricing reflects the ongoing growth in revenue generated by our systems," said Vivint Solar CEO David Bywater. "Investors are seeing the trajectory of our unit economics, and we appreciate the ongoing support of Bank of America Merrill Lynch along with Hannon Armstrong's continued programmatic investment."
"The innovative forward flow funding structure gives Vivint Solar financial flexibility through the cash margin provided by this vehicle for a portion of our future PPA and lease assets," said Vivint Solar's Chief Commercial Officer and Executive Vice President of Capital Markets, Thomas Plagemann. "While our focus is always on providing the best suited products for each homeowner, it is equally important to develop a sustainable funding model so we can continue growing."
"Hannon Armstrong is pleased to continue to be a part of Vivint Solar's growth story by supporting it with the capital needed for its ongoing expansion," said Hannon Armstrong President & CEO Jeffrey Eckel.