Vivint Solar Seeks Financing After Canceling SunEdison Deal

  • Solar company said pending deal `adversely' affected financing
  • Vivint canceled $1.9 billion acquisition by SunEdison March 7

Vivint Solar Inc. is seeking to raise “substantial” amounts of cash after its canceled acquisition by SunEdison Inc. hindered the company’s operations.

Vivint had $92.2 million in cash and equivalents on hand as of Dec. 31, down from $261.6 million a year earlier, according to a filing Tuesday. The Lehi, Utah-based residential solar company also said it has arranged $200 million in term loans from investment funds advised by Highbridge Principal Strategies LLC.

The filing sheds more light on how its operations were affected by SunEdison’s attempt to purchase the company. The much-criticized $1.9 billion deal triggered legal actions from investors and was renegotiated in December. Vivint pulled the plug last week after SunEdison missed some deadlines, and said the protracted process led to “distractions” in its business, including difficulties raising capital.

“The pendency of the SunEdison acquisition and the risks and uncertainties associated with it adversely affected the willingness of parties to enter into financing arrangements with us,” Vivint said in the filing.

‘Very Concerned’

The Highbridge deal is significant, according to Michael Morosi, an analyst at Avondale Partners LLC. Vivint said it’s already borrowed $25 million from the new financing and expects to incur an additional $50 million within 30 days.

“Had they published the numbers they published without announcing they had raised a term loan, I would be very concerned today,” Morosi said in an interview Tuesday. “The stock would be down much more than it is.” He estimates that Vivint needs about $50 million a quarter to fund its operations.

Vivint fell 7.8 percent to $3.65 at the close in New York.

In the aftermath of the SunEdison deal, Vivint filed a lawsuit against its former suitor and is “re-evaluating our operating plan in light of the termination of the merger agreement and our financing needs,” according to the filing.

Vivint said its available cash and funding commitments “will be sufficient to meet our anticipated cash needs for at least the next 12 months,” according to the filing. However, if it can’t raise additional financing when needed, “we may be required to significantly reduce the scope of our operations.”

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