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Vivint Solar raises $327M, reports Q2'18 non-GAAP net loss

Vivint Solar Inc. has raised $327 million in total funding commitments after securing a multiparty forward flow funding arrangement which includes project-level debt, a levered tax equity partnership, and the company's first cash equity investment.

According to an Aug. 7 news release, the funding commitments have a total value of about $410 million, structured to generate upfront cash margin for approximately 95 MW of future solar projects by the company.

Vivint said the transaction is the first of its kind in the residential solar industry, incorporating a multiparty forward purchase commitment anchored by a levered tax equity partnership.

"The cash margin provided by this vehicle for a portion of our future [power purchase agreement] and lease assets is an important step to increase Vivint Solar's financial flexibility and to solidify a sustainable funding model for the business," said Thomas Plagemann, Vivint's chief commercial officer and head of capital markets.

Vivint expects to raise approximately $3.37 per watt in upfront proceeds in addition to 41 cents per watt in retained value and renewal value. Together with Vivint Solar's other tax equity partnerships, the multiparty forward flow funding arrangement is expected to finance the installation of more than 170 MW of residential solar energy systems.

Bank of America Merrill Lynch serves as sole structuring and placement agent for the cash equity and multidraw term loan, as well as sole tax equity investor. Hannon Armstrong is the structured cash equity investor.

Q2 results

Vivint on Aug. 7 reported 2018 second-quarter non-GAAP net loss of $58.7 million, or negative 50 cents per share, compared to a net loss of $37.1 million, or negative 33 cents per share, in the second quarter of 2017.

Revenue for the quarter totaled $80.8 million, up 11% from $73 million a year ago. Loss from operations widened to $16.1 million, from $14.3 million, in the prior-year quarter.

Vivint booked approximately 64 MW of solar power for the second quarter of 2018 and installed approximately 47 MW. Cost per watt for the quarter was $3.11, an increase from $2.88 in the second quarter of 2017.

On a GAAP basis, the company reported net income available to common stockholders of $18.1 million, or 15 cents per diluted share, compared to $5 million, or 4 cents per diluted share, in the same quarter in 2017.

For the third quarter of 2018, the company expects its installed capacity to be in the range of 51 MW to 54 MW, while cost per watt is expected to be in the range of $3.15 to $3.23.