If you are interested in the details of debt and stock financing deals for renewable energy, energy storage and energy efficiency companies, we are going to do a weekly post to keep you updated. To start things off, we thought we would review the cleantech stocks and bond finance announcements for the entire month of July. Earnings announcements are generally given their own posts, and we will be doing some catch up on earnings for the major players in the industry, early in August.
July 31, 2015 – TerraForm Global, Inc. announced that its wholly-owned indirect subsidiary, TerraForm Global Operating, LLC (the “Issuer”), priced US$810 million aggregate principal amount of 9.75% senior notes due 2022 in a previously announced private offering exempt from the registration requirements of the Securities Act of 1933. The closing of the offering is expected to occur on August 5, 2015, subject to certain closing conditions.
The Notes will be senior unsecured obligations of the Issuer and on the issue date will be guaranteed by the Issuer’s direct parent, TerraForm Global, LLC . Following the issue date, the Notes will be guaranteed by any domestic subsidiaries of TerraForm Global LLC that guarantee the Issuer’s revolving credit facility or any other material indebtedness. TerraForm Global will not guarantee the Notes.
TerraForm Global intends to use the net proceeds of the offering of the Notes to fund, in whole or in part, renewable energy projects , which include financing or refinancing of, or investments in, equipment and systems which generate or facilitate the generation of energy from renewable sources, such as solar, wind and hydroelectric energy.
July 31st, 2015 – SunPower Corp. (NASDAQ: SPWR) announced that it will redeem the entire $79,000 outstanding principal amount of its 0.75% Senior Convertible Debentures due in 2027 (CUSIP No. 867652 AB 5). SunPower intends to use available funds to redeem the debentures.
July 28, 2015 – SolarCity Corporation (NASDAQ: SCTY) announced that its wholly-owned subsidiary, SolarCity LMC Series IV, LLC, intends, subject to market and other conditions, to offer in a private placement $123,500,000 aggregate principal amount of Solar Asset Backed Notes, Series 2015-1 with an anticipated repayment date of February 21, 2022. The offering will be made only (i) within the United States to persons who are qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933, as amended, and (ii) to certain non‑U.S. persons in offshore transactions in reliance on Regulation S under such Act.
These notes will be secured by the membership interests that will be owned by SolarCity LMC Series IV, LLC in certain indirectly owned subsidiaries of SolarCity Corporation, each of which is the managing member of a fund that is jointly owned with a third-party fund investor and that acquired pools of solar energy systems and related leases and power purchase agreements and ancillary rights and agreements from SolarCity Corporation. These notes will represent obligations solely of SolarCity LMC Series IV, LLC, and will not be insured or guaranteed by SolarCity Corporation or any other affiliate thereof, or by any other person or entity.
July 28, 2015 – Pattern Energy Group Inc. (NASDAQ: PEGI) (TSX: PEG) announced that it has closed the previously announced private offering of $225 million aggregate principal amount of its 4.00% Convertible Senior Notes due 2020 that is exempt from the registration requirements of the U.S. Securities Act of 1933, as amended , and the prospectus requirements of applicable Canadian securities laws . The initial purchasers of the Notes Offering have a 30-day option, exercisable until August 21, 2015, to purchase up to an additional$33.75 million aggregate principal amount of Notes solely to cover over-allotments, if any.
The Company intends to use the net proceeds from the Notes Offering, together with the net proceeds from a concurrent underwritten public offering of approximately $125 million, or 5,435,000 shares, of its Class A common stock, for the repayment of a portion of the outstanding indebtedness incurred in connection with the Company’s purchase of interests in the K2, Lost Creek and Post Rock wind projects, the acquisition of non-controlling interests in the Gulf Wind project, the prepayment of Gulf Wind project level indebtedness and general corporate purposes.
July 28, 2015 – JinkoSolar Holding Co., Ltd. ) (NYSE: JKS), a global leader in the solar PV industry, announced that JinkoSolar Power Co., Ltd., a subsidiary of the Company, has signed a three-year RMB 3 billion (US $483 million) line of agreement with Ping An Bank Co., Ltd. . PAB’s financing will be used to supportJinko Power’s PV project developments.
According to the terms of the agreement, the line of credit is RMB 3 billion (US $483 million) for three years. The first loan of RMB630 million(US $101 million) has been withdrawn and will be used to support the development of PV solar power plant projects in Inner Mongolia, Guangdong province, andZhejiang province.
July 28, 2015 – Canadian Solar Inc. (NASDAQ: CSIQ), one of the world’s largest solar power companies, today announced that it has signed a JPY3.5 billion (US$28.35 million) credit facility agreement with Rabobank Hong Kong. The credit facility has a two-year maturity and will be used to finance the construction of an initial portfolio of up to 20 MWp of Canadian Solar’s solar power plants in Japan.
July 22, 2015 – Natcore Technology Inc. (TSX-V: NXT; OTCQB: NTCXF; DAX: 8NT) was approved to trade on OTCQB, an over-the-counter marketplace organized for venture-stage or early-stage companies.
This is an upgrade from OTC Pink (the “pink sheets”), where Natcore had previously traded. To be quoted on OTC Pink, companies are not required to file with the SEC. But on June 2, Natcore announced that it had become fully reporting with the SEC, a prerequisite to being upgraded to OTCQB.
On the OTCQB, Natcore’s trading symbol will continue to be NTCXF, as it was on OTC Pink.
July 21, 2015 – SHAREHOLDER ALERT: Brodsky & Smith, LLC Announces Investigation of The Board of Directors of Vivint Solar, Inc. The Law office of Brodsky & Smith, LLC announced that it is investigating potential claims against the Board of Directors of Vivint Solar, Inc.(“Vivint” or “the Company”) (NYSE -VSLR-News) for possible breaches of fiduciary duty and other violations of state law in connection with the sale of the Company to SunEdison and TerraForm (“SunEdison”).
Under the terms of the transaction, Vivint shareholders will receive only $16.50 in cash for each share of Vivint stock they own. The investigation concerns whether the Board of Vivint breached their fiduciary duties to shareholders and whether SunEdison is underpaying for Vivint. The transaction may undervalue the Company and will result in a loss for no real gain for many long term holders of Vivint stock. For example, Vivint stock traded at $18.71 per share on October 1, 2014 and an analyst has set a price target for Vivint stock at $23.00 per share.
July 16, 2015 – JinkoSolar Holding Co., Ltd. (NYSE: JKS), a global leader in the solar PV industry, announced that JinkoSolar Power Engineering Group Limited , a subsidiary of the Company, has signed a $150 million loan agreement with Credit Suisse AG and a number of financial institutions. Proceeds from the financing will be used to expand Jinko Power’s project portfolio in China and provides funds to expand capacity to 1.4 GW. Credit Suisse acted as sole arranger and led the consortium of investors in the financing.
According to the terms of agreement, Jinko Power will receive an 18-month senior secured term loan totaling $150 million. The lenders will also be granted warrants, which represent no more than approximately 2% of Jinko Power’s equity on a fully distributed basis, subject to their terms and conditions.
July 16, 2015 – Daqo New Energy Corp. (NYSE: DQ) , a leading polysilicon manufacturer based in China, today announced that it has received approval from Chongqing Rural Commercial Bank for RMB825 million (US $133 million) loans, which include a six-year term project finance loan of RMB625 million (US $101 million) and a one-year operating loan facility ofRMB200 million(US $32 million).
July 15, 2015 – Ampt LLC, a leader in power conversion technology for solar power plant optimization, today announced $20 million in Series C funding and $5 million in working capital to support continued growth. The funding will be used to expand production and accelerate global sales and partnership activities, as well as to support ongoing product innovation.
July 15, 2015 – NRG Energy, Inc. (NYSE:NRG) announced that its Board of Directors declared a quarterly dividend on the Company’s common stock of $0.145 per share, or $0.58 per share on an annualized basis. The dividend is payable on August 17, 2015 to stockholders of record as of August 3, 2015.
June 30, 2015 – Solar Power, Inc. (SPI) (OTCBB:SOPW), a vertically-integrated photovoltaic project developer, announced the closing of the issuance and sale of a convertible promissory note to a non-U.S. investor in connection with the private placement of up to $40 million previously announced on June 15, 2015.
The Investor purchased a convertible promissory note in the principal amount of US$20 million from SPI on private placement basis. The Convertible Note will mature on the first anniversary of its issuance date and will be convertible, at the Investor’s option, to SPI common stock at a price of $2.70 per share, subject to the terms and conditions of the Convertible Note Agreement.
SPI has also granted the Investor an option to purchase $20 million of SPI’s common stock exercisable at any time within the next six months of the date of the relevant option agreement at a price of $2.70 per share, subject to the terms and conditions of the Option Agreement.
Tracey is an accountant and entrepreneur with a passion for nature. This passion is what spurred her interest in renewable energy, and the rest is history as they say. Tracey is a principal in Energy Think Group, the publisher of Solar Thermal Magazine and Tek-Think. She is also the principal at Women’s Financial Help Desk. She spends her free time in the outdoors with her horses and dogs. She loves to travel.