Spruce Finance, a provider of consumer financing for residential solar and home efficiency improvements, has closed a $105.4 million round of debt financing, with Investec and Silicon Valley Bank (SVB) as the lead arrangers. The syndicated loan is financed against a Spruce portfolio of residential solar systems, and Spruce says it will use the proceeds to finance additional systems in states around the U.S.
“This is a follow-on deal to the $120 million facility that Investec led for us last May,” notes Darren Thompson, chief financial officer at Spruce. “We’re pleased to be working with them again and with SVB on a second transaction that has allowed us to raise capital on attractive terms.”
Michael Pantelogianis and Ralph Cho, co-heads of Investec’s North America Power & Infrastructure Finance Group, says, “As the residential solar financing markets evolve, the syndicated loan market has established itself as the ‘go-to’ market option for quality sponsors such as Spruce.”
“We’re excited to provide this financing alongside Investec to Spruce as it aims to scale residential solar and home efficiency improvements,” adds Bret Turner, managing director of the energy and resource innovation practice at Silicon Valley Bank. “Spruce is a longstanding client of SVB’s, and we look forward to supporting its continued success.”
“This deal demonstrates strong interest from the capital markets in both Spruce’s business and the industry, in general, and we look forward to continued growth in 2017 and beyond,” concludes Thompson.