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SolarCity to Raise $223.5 Million Selling Shares, Notes

SolarCity Corp. (SCTY), the third-largest U.S. solar company, is seeking to raise as much as $223.5 million by offering shares and selling convertible notes.

The company plans to offer 2.8 million shares at $33.69 each, and underwriters Goldman Sachs Group Inc., Credit Suisse Group AG (CSGN) and Bank of America Corp. (BAC) have an option to purchase an additional 420,000 shares within 30 days, the San Mateo, California-based company said today in a filing with the U.S. Securities and Exchange Commission.

SolarCity is also selling $100 million in convertible notes in a concurrent offering. The figure may increase to $115 million if the underwriters exercise an overallotment option.

Chief Executive Officer Lyndon Rive and Chairman Elon Musk plan to buy a total of 560,000 shares from the underwriters, according to the filing. Musk, who is also chairman and CEO of Tesla Motors Inc., is SolarCity’s largest shareholder with a 27 percent stake, according to data compiled by Bloomberg. Rive is Musk’s cousin and owns 3.5 percent of the company.

There will be 81.08 million SolarCity shares outstanding after the offering.

SolarCity owns and operates rooftop solar systems. Homeowners and commercial customers typically pay little to no upfront costs for the equipment and sign long-term contracts to purchase the power.

First Solar Inc. (FSLR) and SunPower Corp. (SPWR) are the largest U.S. solar companies by market value.

To contact the reporter on this story: Ehren Goossens in New York at egoossens1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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