Vivint Solar, Inc. (VSLR)

[TradingCharts]

I want to touch upon a couple of exciting enhancements that I feel are extremely innovative and powerful and will help us move to another level as a company. Subsequent to quarter end, we entered into our first cash equity transaction. This is expected to provide upfront financing of $3.37 per watt for 95 megawatts of new systems. This innovative financing tool is a forward-flow arrangement that allows us to place PPA or lease systems with customers in a manner consistent with past practices. But instead of taking cash off our balance sheet to fund and invest in the retain ownership of these systems, we have partnered with investors both for tax equity as well as the balance of funding for the systems. This means Vivint Solar has no upfront cash outlay, but rather receives an upfront margin like a cash sale as well as a retaining ownership in the systems with some residual ongoing cash flows.

We firmly believe a PPA or lease provides most favorable financial results now and in the future for a higher percentage of customers. This forward-flow arrangement provides greater immediate liquidity and allows the company to place systems with customers, while being somewhat indifferent from a liquidity perspective as to which path a customer selects. We have been working on this for some time, and I appreciate the efforts of our financial partners, our capital markets and our legal teams for making this a reality. This is an exciting development and we believe may become a standard tool for the company and is attributed to the confidence sophisticated organizations have in Vivint Solar and our ability to perform with efficiency and excellence
https://finance.yahoo.com/news/edited-transcript-vslr-earnings-conference-174029808.html