SolarCity changes terms of Silevo deal

The largest US solar installer, SolarCity has revised certain terms related to the purchase of PV manufacturer, Silevo. 

According to an SEC filing, SolarCity would pay some of the acquisition costs in cash, rather than in shares, which the deal was initially based on. 

Silevo has three key milestones to meet for its investors to receive full remuneration of the US$200 million all stock transaction that stands at a further US$150 million in respect to milestones. SolarCity said that the change would relate to Silevo investors that reside outside the US.

Silevo investor’s would share in US$50 million earn-outs related to production milestone. 

1.    Silevo completes a new research and development production facility in the US that is capable of volume production with target efficiency requirements. 
2.    Silevo achieves both volume production with target efficiency requirements an at the R&D facility, while also completing and commissioning its first 1GW facility.
3.    Silevo achieves volume production with target cost and efficiency requirements from the 1GW facility, all before December 31, 2017.

Initially, payouts were planned in two 50MW ramp phases at US$50 million a phase, and a final US$50 million in earnings for a 100MW production ramp and production cost level (undisclosed) by 2016.

SolarCity noted that it had agreed to fund Silevo’s planned capacity expansions according to the revised plans, while all three phases of the earn-outs were now fixed.