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SolarCity (SCTY -0.7%) takes out a $100M loan (could be raised to $150M in time) from several...

SolarCity (SCTY -0.7%) takes out a $100M loan (could be raised to $150M in time) from several banks to help finance fresh panel installations. The loan is backed long-term customer receivables (i.e. electricity purchase commitments) and matures in June '15. It follows a May deal with Goldman to offer $500M+ in lease financing for residential/business panel installations.
Comments (1)
  • sboyes
    , contributor
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    I thought I read that the loan was taken out by a subsidiary and was non-recourse to Solar City, which means in the final analysis the manufacturing entity is not liable for the loan repayment. Now of course, to protect the available of future funding for expansion of installations, it's in Solar City's best interest to ensure that loan is repaid, but the way the loan is structured it should be seen as a catalyst for future growth, not a negative development, and should have an equally positive effective on share price?
    13 Jun 2013, 05:23 PM Reply Like
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