tesla solarcity header

 

SolarCity (SCTY) announced today that it managed to close $305 million in cash equity financing from Quantum Strategic Partners advised by Soros Fund Management. The deal was reportedly more difficult to close ahead of the merger with Tesla (TLSA).

Last month, 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.

At the time, SolarCity’s CEO Lyndon Rive said that the announcement of the deal with Tesla was making it more difficult for the company to raise the capital needed to continue their solar installations. Consequently, SolarCity announced restructuring with layoffs and pay cuts.

Rive himself, along with Tesla CEO Elon Musk, personally bought $100 million worth of SolarCity bonds, which gave more confidence to investors.

Since SolarCity offers solar installations at no or little upfront cost and instead collects fees from the electricity generated through its systems, it needs a lot of capital to install solar on roofs. The company borrows against its predicted cash flow from the solar installations in order to raise more money for again more installations.

In a press release today, SolarCity says that the latest $305 million in cash equity financing today from Quantum Strategic Partners represents 230 megawatts of solar generation capacity spread across 15 states.

The money should help the company go through some uncertainty before the vote on the merger with Tesla which should happen soon since the go-shop provision ends this week.

FTC: We use income earning auto affiliate links. More.


Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.

You’re reading Electrek— experts who break news about Tesla, electric vehicles, and green energy, day after day. Be sure to check out our homepage for all the latest news, and follow Electrek on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our YouTube channel for the latest reviews.

About the Author