Shares of SolarCity Corp (NASDAQ:SCTY) ended Friday session in green amid volatile trading. The shares closed up +0.40 points or 2.34% at $17.50 with 5.95 million shares getting traded. Post opening the session at $17.07, the shares hit an intraday low of $16.20 and an intraday high of $17.55 and the price vacillated in this range throughout the day. The company has a market cap of $1.68 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.
The portfolio of projects in the transaction announced collectively represents 230 megawatts of solar generation capacity spread across 15 states. The vast majority of the installations were completed in 2015 and 2016.
Shares of SunPower Corporation (NASDAQ:SPWR) ended Friday session in red amid volatile trading. The shares closed down -0.19 points or -2.46% at $7.53 with 5.83 million shares getting traded. Post opening the session at $7.55, the shares hit an intraday low of $7.36 and an intraday high of $7.72 and the price vacillated in this range throughout the day. The company has a market cap of $980.58 million and the numbers of outstanding shares have been calculated to be 138.15 million shares.
On Sep 16, 2016 – AutoGrid Systems, the Energy Internet leader, announced that Total Energy Ventures (TEV), the corporate venture arm of Total S.A. ( NYSE : TOT ), a global energy leader, has joined its Series C-2 funding round as a strategic investor. Previous TEV investments in the “smart energy” area include Sunverge and Stem. Total is also the majority owner of global leaders SunPower ( NASDAQ : SPWR ), in solar power, and SAFT, in high technology batteries.
The additional funding from this strategic investor will support further development of the company’s AutoGrid Flex suite of flexibility management applications for predicting, controlling and optimizing distributed energy resources (DERs) via the Energy Internet and strengthen AutoGrid’s solution capabilities in North America, Asia and Europe. In addition, Total’s deep understanding of the solar power, battery storage, power generation and other sectors of the energy industry will inform AutoGrid as it continues to expand its AutoGrid Energy Internet Platform’s (EIP) and its flexibility management applications’ ability to help utilities and energy service providers increase customer engagement, deliver new value added services and maximize the utilization of their own and their customers’ energy assets.
TEV joins a consortium of other Series C-2 investors which invested $20 million in AutoGrid in May, as announced previously. The consortium includes the utility-backed fund Energy Impact Partners (EIP), an investment firm representing four of the largest utilities in the United States and United Kingdom, and Envision Ventures, a Silicon Valley-based fund focused on software for big data, the Industrial Internet of Things (IoT) and security. The consortium also includes Envision Energy, one of the largest renewable energy developers and technology providers in the world with over 50 gigawatts of assets under management and E.ON, one of the largest utilities and renewable energy developers in the world.
“TEV’s investment in AutoGrid extends our firm’s involvement in digital energy solutions that enable increased use of solar, wind, battery storage and other clean energy technologies,” said Christophe Tonion, Senior Investment Manager & CFO at Total Energy Ventures. “AutoGrid’s flexibility management applications empower the energy industry to use the Energy Internet to transform the traditional centralized one-way electric grid into a modern distributed bi-directional grid that is more efficient and extends the benefits of affordable, reliable energy to millions of more people around the world.”