Elon Musk will buy USD 65 million (EUR 57.6m) worth of SolarCity (NASDAQ:SCTY) bonds in the latest issuance announced by the U.S solar installer.
The company began offering a $124 million bond package on Aug. 17, according to a SolarCity filing. The 6.5 percent bonds will be senior unsecured obligations of the company, and will be due in February 2018.
Co-founders of Solarcity Lyndon Rive and Peter Rive will also buy USD 17.5 million each.
“Musk is infusing even more of his money,” Nathan Serota, an analyst at Bloomberg New Energy Finance, said Tuesday. “SolarCity is burning through a lot of cash and they need cash.” Musk is SolarCity’s chairman and largest shareholder. Lyndon Rive is the seventh-biggest shareholder and his brother is the eighth-biggest, according to data compiled by Bloomberg.
Elon Musk is chairman of the SOlarcity board and also the CEO of Tesla Motors Inc (NASDAQ:TSLA) which is comcluding a deal to buy SolarCity.
Musk is also the CEO, chief designer, chairman and a significant stockholder of Space Exploration Technologies Corp (SpaceX), which has also been buying millions of SolarCity bonds in the past months.
SolarCity widened its net loss for the second quarter of 2016 to USD 250.3 million as revenues jumped by 81% year-on-year.
The company said it is taking measures to realign its operating costs with reduced guidance for Megawatts Installed, including a reduction to its workforce.
The Rive brothers have requested that their annual salaries be cut to USD 1 in line with the effort.