Solyndra announced on Monday the closing of a new $75 million secured credit facility underwritten by existing investors.
The proceeds from the financing will be used to support Solyndra’s working capital requirements, accelerate the Company’s ongoing cost reduction activities and execute its expanded channel and segment sales and marketing strategy.
The company was forced to raise additional funds after withdrawing plans for an IPO last year. Solyndra, which received one of the first major loan guarantees from the US Department of Energy has been under intense scrutiny in recent months, as critics say the company’s cost structure is not feasible in a competitive market.
Brian Harrison, Solyndra’s president and CEO, sees it differently. “Solyndra has excellent marketplace momentum, with record installations of our product in the fourth quarter and annual revenues exceeding $140 million last year,” he said in a release.
“With strong acceptance of our 200 Series product, we are seeing growth in the U.S. and markets throughout Europe. We have recently reached a number of significant milestones, including the shipment of nearly 100 megawatts of panels, the completion of more than 1,000 installations in 20 countries and the announcement of our PV greenhouse solution,” he added.
The construction of the DOE supported manufacturing and customer demonstration facility is complete, the company said. Installation of the remaining production tools is scheduled for this year and will bring Solyndra’s annual production run rate to approximately 200 MW per year by year’s end.
When fully ramped, the new facility’s annual production capacity will reach 300MW per year. Solyndra said the new facility will also enable the manufacture of products with an installed system cost-of-goods sold (COGS) of approximately $2 per watt in the first quarter of 2013.
“We are confident that with this round of funding and the continued support of our existing investors we are on track to be cash flow positive at the end of this year,” continued 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 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.
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House Republicans are planning an investigation into whether or not DOE loan guarantees to Solyndra and other cleantech companies were appropriate.
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