Silver Lake set to make $100M strategic investment in SolarCity
November 19, 2015
Silver Lake has agreed to invest $100 million in convertible senior notes of rooftop solar energy provider SolarCity (NASDAQ: SCTY) through Silver Lake Kraftwerk, the firm's energy and resource innovation fund. SolarCity chairman Elon Musk and CEO Lyndon Rive will invest $10 million and $3 million, respectively. Silver Lake's contribution is almost quadruple the size of its early 2012 investment in the company, which it subsequently exited.
The transaction is set to close on or about December 7. It is expected that the notes will be convertible into shares of SolarCity’s common stock, based on an initial conversion rate of 30.303 shares per $1,000 principal amount of the notes (equal to an initial conversion price of $33 per share). The notes are expected to mature in December 2020, subject to earlier conversion, redemption or repurchase. SolarCity stock closed Wednesday at $27.75, up 6.7%.