Vivint Solar, Inc. (NYSE:VSLR) Files An 8-K Entry into a Material Definitive AgreementItem 1.01
On March 9, 2017, subsidiaries of Vivint Solar, Inc. (the “Company”) entered into a Second Amended and Restated Loan Agreement, among Bank of America, N.A., as administrative agent (“Bank of America”), Vivint Solar Financing I, LLC (the “Borrower”), Vivint Solar Financing I Parent, LLC, the other guarantor subsidiaries of the Company party thereto, and the lenders party thereto (such agreement, the “Second Amended and Restated Loan Agreement”), amending and restating the Amended and Restated Loan Agreement dated November 25, 2015 (as amended from time to time, the “Previous Loan Agreement”).
to the Second Amended and Restated Loan Agreement, the parties agreed, among other things, to (1) extend the date through which the Company may incur borrowings to the agreement to March 31, 2020 (the “Availability Period”), with an option to extend such period by an additional 12 months to the extent the lenders agree to such extension, (2) extend the maturity date for the initial borrowing incurred to the agreement from March 12, 2018 to September 30, 2020, and (3) increase the “Applicable Margin” used to determine the applicable interest rate on outstanding borrowings after March 31, 2020 from the previous post-Availability Period rate of 3.50% to 3.75%. The “Applicable Margin” used to determine the applicable interest rate on outstanding borrowings during the Availability Period remains unchanged at 3.25%. In addition, the Second Amended and Restated Loan Agreement, (1) allows the Company to satisfy concentration covenants by maintaining insurance policies with respect to certain tax equity funds for the benefit of the lenders to cover any indemnification payments the Company may be required to make to certain of its tax equity investors in connection with the loss of ITCs and (2) modifies the customer FICO score requirement thresholds to enable the Company to borrow more against certain solar energy systems. The Second Amended and Restated Loan Agreement also provides the ability for the Company to enter into forward-starting interest rate hedges and requires no less than 75% of outstanding loan balances to be hedged at all times. Capitalized terms included in this paragraph that are not otherwise defined in this Item 1.01 have the meanings ascribed to them in the Previous Loan Agreement.
About Vivint Solar, Inc. (NYSE:VSLR)
Vivint Solar, Inc. primarily offers distributed solar energy, which is electricity generated by a solar energy system installed at or near customers’ locations to residential customers based on over 20-year contracts. The Company operates through two operating segments: Residential, and commercial and industrial market (C&I). Through its investment funds, the Company owns an interest in the solar energy systems the Company installs, and ownership of the solar energy systems allows it and the other fund investors to benefit from various local, state and federal incentives. The Company has a process that enables it to design and install a custom solar energy system that delivers customer savings. The Company is a licensed contractor in the markets the Company serves and is responsible for each customer installation. Upon completion, the Company schedules the required inspections and arranges for interconnection to the power grid. Vivint Solar, Inc. (NYSE:VSLR) Recent Trading Information
Vivint Solar, Inc. (NYSE:VSLR) closed its last trading session 00.00 at 2.80 with 267,909 shares trading hands.
