New Investment Funds Rapid Manufacturing and Sales Growth
FREMONT Calif., February 28, 2011 – Solyndra, a manufacturer of cylindrical solar photovoltaic (PV) systems for large industrial and commercial rooftops, today announced 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.
“Solyndra has excellent marketplace momentum, with record installations of our product in the fourth quarter and annual revenues exceeding $140 million last year,” said Brian Harrison, Solyndra’s president and CEO. “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.”
The company’s construction of its new, world-class manufacturing and customer demonstration facility is complete. The 300,000 square foot project was completed ahead of schedule, employing approximately 3000 construction workers. Installation of the remaining production tools occurs in 2011 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. The new facility will also enable Solyndra to manufacture products with an installed system cost-of-goods sold (COGS) of approximately $2 per watt in the first quarter of 2013, which is expected to be highly competitive with all other technologies.
“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. “Solyndra’s fast and easy to install panels are a proven and scalable solar solution, ideal for rooftop applications. Today we are demonstrating competitive ’all in’ pricing, strong ROI and economics for rooftop owners, and many enthusiastic new and repeat customers.”
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.
Solyndra is a leading global provider of solar systems for the commercial and industrial rooftop market. Headquartered in Fremont, California, Solyndra produces cylindrical thin-film modules at its state-of-the-art U.S. manufacturing facility. Solyndra’s panels are placed horizontally on the rooftop and don’t require expensive mounting or ballast. The Solyndra panels can be installed more quickly and at a lower cost than conventional systems. Able to capture direct and reflected sunlight across a 360 degree surface, Solyndra’s panels offer building owners both lower electricity costs and greater system output, especially when paired with “cool” or white roofs. Solyndra manufactures all of its products in the United States through a well developed domestic supply chain and has approximately 1050 employees.