When SolarCity first launched its Solar Bond Program, it was presented as an interesting way for people to invest in solar with minimum cost requirements and without having to install panels on their roof. It ended up looking more like SpaceX’s private investment platform after Elon Musk’s rocket company bought most of the bonds over the last year – about $255 million worth.
Now Elon Musk is also personally investing in the Solar Bonds, along with SolarCity co-founders Lyndon and Peter Rive, ahead of SolarCity’s merger with Tesla.
In a SEC filing released yesterday, Musk disclosed that he is personally buying $65 million of bonds, and Lyndon Rive, SolarCity’s CEO and co-founder, and Peter Rive, CTO and co-founder, are each buying $17.5 million.
The bonds were part of SolarCity’s latest $124 million bond package that went on sales on August 17. The bonds yield 6.5 percent and will be due in February 2018.
The money will be used to finance new solar installations since SolarCity provides its service at no or little upfront cost.
The news also comes just a few days after SolarCity announced restructuring with layoffs and pay cuts. SolarCity’s board of directors accepted Tesla’s $2.6 billion acquisition offer, which is still subject to SEC review, but otherwise, the agreement will be brought to a Shareholders vote at some point after September 14, 2016
Featured image: Founder & COO Peter Rive, Chairman Elon Musk , SolarCity Founder & CEO Lyndon Rive speak at the companys IPO at the NASDAQ stock exchange on December 13, 2012 in Manhattan, New York. (Mark Von Holden/AP Images for SolarCity)