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SolarCity Raises $305 Million for Residential and Commercial Solar Projects

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Reuters
Reuters
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By
Reuters
Reuters
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September 12, 2016, 2:26 PM ET
A SolarCity Installation As Earnings Figures Are Released
The SolarCity Corp. logo is seen on the side of an installation van outside a home in the Eagle Rock neighborhood of Los Angeles, California, U.S., on Wednesday, May 7, 2014. SolarCity Corp., the largest U.S solar-power provider by market value, is expected to announce quarterly earnings figures after the close of U.S. financial markets on May 7. Photographer: Patrick T. Fallon/Bloomberg via Getty ImagesPatrick T. Fallon— Bloomberg via Getty Images

Solar panel installer SolarCity, which is being bought by Tesla Motors, said it had raised $305 million in a cash equity transaction advised by billionaire investor George Soros’ hedge fund.

Shares of the company, which is backed by Tesla founder Elon Musk, were up 6.6% at $17.89 in afternoon trading on Monday.

A private investment fund affiliated with Quantum Strategic Partners provided the equity investment in a portfolio of residential, commercial, and industrial solar projects, the company said.

The fund was advised by Soros Fund Management.

This is the second cash equity transaction by the debt-laden solar company this year. The company in May received a $227 million investment from John Hancock in a diversified portfolio of residential, commercial, and industrial solar power projects.

Monday’s transaction included an 18-year-loan syndicated to five institutional investors, SolarCity said.

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Bank of America Merrill Lynch (BAC) acted as the sole syndication and structuring agent for the transaction.

The solar company said last month it faced greater-than-usual delays in closing new project financing commitments due to its takeover talks with Tesla (TSLA).

For more, read: Here’s Why Solar Farms Are Booming in the U.S.

Up to Friday’s close of $16.77, SolarCity’s shares (SCTY) had lost more than a fifth of its value since Tesla made its first offer in June.

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