SolarCity amends Bank of America, U.S. Bank credit agreements

By Marisa Wong

Madison, Wis., June 24 - SolarCity Corp. amended three of its credit agreements on June 18, according to an 8-K filing with the Securities and Exchange Commission.

The company entered into a first amendment to its credit agreement dated March 8, 2012 with Bank of America, NA as administrative agent to modify the definition of debt service coverage ratio.

The debt service coverage ratio is now equal to the ratio of (a) for the trailing 12-month period then ending on the most recent fiscal quarter end available, EBITDA less maintenance capital expenditures to (b) cash interest charges for the trailing 12-month period then ending on the most recent fiscal quarter end available.

The company also entered into a first amendment to its credit agreement dated Sept. 10, 2012 with Bank of America as administrative agent and BofA Merrill Lynch as lead arranger and bookrunner.

This amendment allows the company to incur indebtedness in connection with the issuance of up to $345 million of notes with an interest rate not to exceed 5% and enter into a proposed share lending transaction.

In addition, the amendment allows Bank of America in certain circumstances to adjust the borrowing base under the revolving credit facility.

Also, the definition of debt service coverage ratio was updated to the definition under the March 8, 2012 agreement above.

Concurrently, SolarCity entered into a sixth amendment to its term loan agreement dated Jan. 24, 2011 with U.S. Bank NA to modify the definition of debt service coverage ratio, as stated.

The sixth amendment also permits the company to incur indebtedness relating to the $345 million notes issue, as long as the maturity date occurs after Feb. 1, 2016 and the notes are not subject to any financial covenants, and to enter into the share lending transaction.

The company is a San Mateo, Calif., provider of clean distributed energy.

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