Blackstone-backed Vivint Solar files for a $200 million IPO

Vivint Solar, a Blackstone-backed provider of residential solar energy systems, filed on Tuesday with the SEC to raise up to $200 million in an initial public offering.

The company assumes most of the upfront costs related to installing solar energy systems at customers' residences, and then generates revenue through 20-year electricity contracts with homeowners. Vivint Solar has installed its equipment in over 21,900 homes (39% in the 1H14) across seven states with an aggregate capacity of 130 megawatts. Blackstone acquired parent company Vivint in 2012 for over $2 billion, and plans to sell shares on the IPO.

Vivint is the second largest installer of residential solar energy systems in the US with an 8% market share, behind close competitor SolarCity (SCTY). Elon Musk's SolarCity remains one of the top IPOs of 2012, and trades over 750% above its IPO price.

Revenue increased over five-fold to $10 million during the six months ended June 30, 2014, compared to the prior year period. Its operating loss tripled to $64 million, which reflects front-heavy installation expenses, much higher sales and marketing costs and fees related to the IPO. Including related party debt, it held about $132 million of debt at the end of June, which it will pay down with IPO proceeds.

The Provo, UT-based company, which was founded in 2011 and booked $14 million in sales for the 12 months ended June 30, 2014, plans to list on the NYSE under the symbol VSLR. Vivint Solar initially filed confidentially on May 14, 2014. Goldman Sachs, BofA Merrill Lynch, Credit Suisse, Citi, Morgan Stanley, Deutsche Bank and Barclays are the joint bookrunners on the deal. No pricing terms were disclosed.