Fremont, Calif.-based Solyndra, a manufacturer of cylindrical solar photovoltaic systems for large industrial and commercial rooftops, has closed a new $75 million secured credit facility underwritten by existing investors.
The company says the proceeds from the financing will be used to support its working capital requirements, accelerate its ongoing cost-reduction activities and execute its expanded channel and segment sales and marketing strategy.
‘We are confident that with this round of funding and the continued support of our existing investors, we are on track to be cashflow positive at the end of this year,’ notes CEO Brian Harrison.
The new financing also included the restructuring of the company's outstanding indebtedness. Solyndra's existing convertible notes have been exchanged for new notes, and the U.S. Department of Energy (DOE), which provided a loan guarantee, agreed to certain loan modifications, including an extension of the amortization period. Together with the existing indebtedness, the new credit facility is secured by all assets of the company.
Solyndra's DOE loan guarantee is currently under investigation by the U.S. House of Representatives' Energy Committee.