Blackstone-Backed Vivint Solar Files for $200 Million IPO

Vivint Solar, the rooftop-panel leasing unit of Blackstone Group LP-backed Vivint Inc., filed for a $200 million initial public offering in the U.S.

Vivint, which was acquired by Blackstone Group in 2012 for about $2 billion, plans to use part of the proceeds from the sale to pay debt, according to a filing to the U.S. Securities and Exchange Commission today. The amount is a placeholder used to calculate fees and may change.

The largest U.S. residential solar installer after SolarCity Corp. (SCTY) leases systems to homeowners in the U.S., offering them a 15 percent to 30 percent savings on their power bills. The proposed share sale will likely encourage other solar panel companies to follow suit, said Nick Culver, a New York-based analyst at Bloomberg New Energy Finance.

“As SolarCity’s valuation skyrockets, its competitors are undoubtedly eager to follow its path in search of cheaper capital,” Culver said.

The residential solar industry will grow at an annual rate of 28 percent from 2012 through 2017, according to GTM Research. Vivint also competes with Sungevity Inc. and Sunrun Inc.

The offering will be managed by Goldman Sachs Group Inc., Bank of America Corp., and Credit Suisse Group AG, according to a prospectus filed today. The company has applied to list its shares on the New York Stock Exchange under the symbol VSLR.

To contact the reporters on this story: Ehren Goossens in New York at egoossens1@bloomberg.net; Justin Doom in New York at jdoom1@bloomberg.net

To contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net Carlos Caminada, John Simpson

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