First Solar (FSLR) has announced that it has entered into a five-year revolving credit and guarantee facility worth $1 billion. The borrowing agreement includes $250 million that can be used for the issuance of letters of credit. JPMorgan Chase (JPM) played a key role as the lead arranger for this debt arrangement.
In a news release, First Solar CEO Mark Widmar emphasized the importance of maintaining liquidity, stating, “We are focused on exiting this decade in a stronger position than we entered it, and liquidity is a crucial differentiator that we intend to maintain.” Widmar also highlighted the financial headroom and flexibility provided by the revolving credit facility, which will enable the company to respond to the growing demand for its technology while balancing its ability to grow.
Additionally, First Solar revealed its ambitious growth strategy, aiming to add around 8 gigawatts of new capacity between the second half of 2023 and 2026.
Following this announcement, shares of First Solar surged by 4.2% to $190.91, their largest percentage increase since May 12, according to Dow Jones Market Data. Furthermore, First Solar emerged as the top performer within the S&P 500 on Friday.