SolarCity is a leader of distributed clean energy and will trade under SCTY.
Tesla hopes to pair SolarCity's panels with the vehicle maker's in-house battery packs to capture additional renewable power. The solar installer said in a filing on Tuesday that its chairman and Tesla chief executive Elon Musk have assented to purchase more than 50% of its latest offering of bonds, reports MarketWatch. CEO Lyndon Rive and his brother, Chief Technology Officer Peter Rive, have asked to have their annual salaries reduced to $1 from $275,000 as part of the cost-cutting plans. He is the largest shareholder in Tesla and SolarCity. While Lyndon Rive and Peter Rive are ranked as the seventh- and eighth biggest shareholders.
"The deal comes as rooftop solar companies face pressure from competition and a changing regulatory landscape". These bonds carry a rate of 6.5%, and will retire in February 2018.
It appears to be the first time Musk has personally bought the Solar Bonds, though Reuters noted that Musk's company SpaceX has bought them before.
SolarCity normally markets its solar bonds to retail investors.
SolarCity, based in San Mateo, CA, is a renewable energy company also chaired by Musk. One of the biggest buyers of the bonds is another Musk entity - Space Exploration Technologies Corp.
Serota stated that "They were hoping to target impact investors..." It allows customers to install solar-systems with partial or no down payments, and keeps collecting monthly payments thereafter. Mounting solar panels on your home aids fight the dreaded greenhouse gas emissions and decreases human's reliance on fossil fuel.