Shares of SolarCity Corp (NASDAQ:SCTY) ended Tuesday session in green amid volatile trading. The shares closed up +1-12 points or 6.50% at $18.35 with 5.17 million shares getting traded. Post opening the session at $17.24, the shares hit an intraday low of $17.06 and an intraday high of $18.73 and the price vacillated in this range throughout the day. The company has a market cap of $1.81 billion and the numbers of outstanding shares have been calculated to be 100.27 million shares.
SolarCity Corp (SCTY) on Sept. 12, 2016 announced that it raised $305 million in its second cash equity transaction. A private investment fund affiliated with Quantum Strategic Partners Ltd. and advised by Soros Fund Management LLC provided the equity investment in a portfolio of residential, commercial and industrial solar projects. The transaction also included a fully amortizing, 18-year loan that was syndicated to five high-quality institutional investors.
By placing the equity investor and lender group separately, SolarCity was able to achieve a pre-tax, weighted average cost of capital for the transaction of 7.4%, a significant improvement over its first cash equity transaction. The transaction and terms demonstrate the exceptional quality of SolarCity’s distributed solar assets.
The syndication of a long-dated, fully-amortizing loan is believed to represent a ‘first of its kind’ for distributed solar assets, creating another valuable financing tool for SolarCity. The loan was rated investment grade by a leading credit rating agency, and the financing is non-recourse to SolarCity. Bank of America Merrill Lynch acted as the sole syndication and structuring agent for the transaction.
SolarCity monetizes its underlying cash flows in cash equity transactions, but retains ownership of the assets and continues to service the customers. SolarCity held $5.2 billion in solar energy system assets on its balance sheet at the end of its most recently reported quarter on June 30. Those assets are contracted to create $3.1 billion in future payments on a net present value (NPV) basis, and SolarCity expects to continue to execute additional transactions in the future with high quality investors to monetize its contracted cashflows.
Shares of Rackspace Hosting, Inc. (NYSE:RAX) ended Tuesday session in green amid volatile trading. The shares closed up +0.04 points or 0.13% at $31.51 with 4.29 million shares getting traded. Post opening the session at $31.47, the shares hit an intraday low of $31.47 and an intraday high of $31.52 and the price vacillated in this range throughout the day. The company has a market cap of $3.97 billion and the numbers of outstanding shares have been calculated to be 125.81 million shares.
Rackspace Hosting, Inc. (RAX) on September 15, 2016 announced the release of Managed Application Services for Microsoft® Azure®. This new offering introduces Rackspace’s premium Fanatical Support® to customers operating the Sitecore Experience Platform on Azure. Managed Application Services for Microsoft Azure also supports a full range of other digital applications, including Magento®, SAP® Hybris®, Oracle® Commerce, Adobe® Experience Manager, and custom Java® and .Net applications running on Azure. Adding premium, 24x7x365 application expertise and operations support on top of the Azure platform helps Rackspace ensure customers’ ecommerce and web sites deliver optimal performance and reliability.
Managing digital and other mission-critical applications can be extremely complex and time intensive. Many businesses lack the internal resources and expertise needed to effectively architect the right solution for maximum performance, and to monitor and troubleshoot issues across the network, infrastructure and application layers. The new Managed Application Services offering will provide customers with 24×7 access to application and Microsoft Azure experts, which will help companies enhance their app’s performance. These new services allow customers to leverage the benefits of Azure, while receiving the results-obsessed Fanatical Support that they are used to across their Rackspace, Azure and hybrid cloud environments.
“Delivering Managed Application Services to a growing number of businesses running digital applications on top of Microsoft Azure allows us to address a significant need in the market,” said Kyle Metcalf, general manager for Rackspace Digital. “Managing the full range of digital applications requires deep expertise. By bringing our Fanatical Support up the stack to the application layer, we’re able to provide unprecedented value to digital customers on Azure. These customers can now sleep comfortably each night knowing that Rackspace is watching their sites and helping ensure their valuable applications are always operating optimally.”