Vivint Solar Inc. closed a $325 million revolving warehouse facility to refinance its existing revolving credit facility that was set to mature in 2020.

The new warehouse reduces the cost of debt by 87.5 basis points and materially increases the amount of upfront proceeds as a percentage of future contractual cash flows. Vivint can increase the amount under the new credit facility to $400 million, according to an Aug. 6 news release.

"Higher advance rates and earlier funding reduces the need for working capital in the business and brings our funding more in line with when we incur creation costs," said Thomas Plagemann, chief commercial officer and head of capital markets at Vivint Solar.