SolarCity Corp (NASDAQ:SCTY) has announced via a press release today that it has entered into its largest ever rooftop solar aggregation facility agreement. The company also said it has received all of the necessary commitments for the project, which amount to $250 million.
SolarCity works with group of lenders
The company said a group of lenders have provided the financing. Included in that group is Bank of America Merrill Lynch, which is the sole structuring agent and solar syndication agent. The firm agreed to finance over 200 megawatts of solar power systems for homes and business. SolarCity Corp (NASDAQ:SCTY) reports that this is the biggest aggregation facility for “distributed generation solar projects to date.”
At this year's SALT New York conference, Cathie Wood, founder, and CEO of ARK Investment Management LLC, spoke about her view on Bitcoin, the outlook for Tesla and Ark's investment process. Q2 2021 hedge fund letters, conferences and more The investment manager explained that the team at ARK has a five-year investment horizon, with a Read More
The company also states that this is the third facility like it which SolarCity Corp (NASDAQ:SCTY) has entered into. At this point, SolarCity has raised more than $4 billion in financing for its solar projects. The company said this loan is “backed by high quality, long-term customer receivables that allow the company to deploy, aggregate and season a defined pool of assets.” After all of the solar assets covered by the loan are deployed, SolarCity will refinance the facility within the securitization market.
Shares of SolarCity Corp (NASDAQ:SCTY) have been declining steadily for the last month or so. They especially took a hit on Monday, along with other momentum stocks like Netflix, Inc. (NASDAQ:NFLX) and fellow Elon Musk-related stock Tesla Motors Inc (NASDAQ:TSLA). If today’s increase holds steady through closing bell, then it could mark a turnaround, or at the very least, a flattening out of the stock.
Some analysts have suggested that the recent weakness in SolarCity Corp (NASDAQ:SCTY) presents a buying opportunity for investors who are interested in the green energy industry. Meanwhile, the company has had to put its home battery project on hold as it deals with roadblocks within California’s utility industry.