SolarCity provides details of $500 million aggregation facility

By Lisa Kerner

Charlotte, N.C., May 8 – SolarCity Corp. provided additional details in a form 8-K filed with the Securities and Exchange Commission about its previously announced $500 million financing aggregation facility arranged with three lenders.

A SolarCity subsidiary entered into a revolving credit facility on May 4 with a syndicate of banks including Bank of America, NA as administrative agent and collateral agent; Bank of America and Credit Suisse Securities (USA) LLC as joint structuring agents; and Bank of America, Credit Suisse Securities and Deutsche Bank AG, New York Branch as joint bookrunners and joint lead arrangers.

The aggregation facility is backed by high-quality, long-term customer receivables that allow SolarCity to deploy, aggregate and season a defined pool of assets, the filing stated.

Borrowings under the facility bear interest at a rate per annum equal to Libor plus 275 basis points.

SolarCity is permitted to voluntarily prepay any outstanding amounts under the credit facility at any time without premium or penalty, other than customary breakage costs.

The loan matures on Dec. 31, 2017 but may be extended at the borrower’s request, according to the filing.

As previously reported, the loan facility is expected to be the largest of its kind for distributed generation solar projects.

When the facility is fully drawn, SolarCity said it will be able to finance installations for tens of thousands of homes and businesses throughout the United States.

San Mateo, Calif.-based SolarCity provides clean energy and financial products based on clean energy.

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