SolarCity closes $250 million facility due 2016 at Libor plus 325 bps

By Susanna Moon

Chicago, Feb. 10 - SolarCity Corp. obtained a $250 million loan facility due Dec. 31, 2016 with an initial commitment of $100 million.

Interest on the loans is Libor plus 325 basis points.

The company entered into the agreement on Feb. 4 with Bank of America, NA as lender, administrative agent and collateral agent, according to an 8-K filing with the Securities and Exchange Commission.

The loan is financed against distributions from subsidiaries that have either entered into partnerships with tax equity investors or are lessor under a master lease with tax equity investors, the filing noted.

The loan is non-recourse to SolarCity and is backed by high-quality, long-term customer receivables that allows SolarCity to deploy, aggregate and season a defined pool of assets, the filing added.

The loan requires the company to prepay outstanding borrowings with excess cash flow upon the occurrence of:

• The outstanding principal, interest and fee being greater than but less than 105% of the available borrowing base, which is based on expected distributions from the borrower subsidiaries;

• The interest coverage ratio being less than 1.4 times; and

• A SolarCity bankruptcy event.

In addition, if the outstanding principal, interest and fees are 105% greater than the available borrowing base, the borrower must make a prepayment in an amount that reduces the outstanding principal, interest and fees to the available borrowing base or less.

The company may prepay any outstanding loans at any time without premium or penalty, other than customary breakage costs.

SolarCity is a San Mateo, Calif.-based provider of clean distributed energy.

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