Seeing Opportunity in the Renewable Energy Market, Power-One Secures Financing to Grow to Meet Demand
Nov 06, 2011
Solar arrays and wind farms are the first step in generating clean energy. But the energy needs to be efficiently converted so it is usable by utilities, businesses and homes—which is where L.A.-based Power-One has found a profitable market. The company is the second largest designer and manufacturer of photovoltaic inverters—the hardware that converts the energy from DC to AC—in the world. It is also one of the ten largest providers of power conversion and power management solutions.
Power-One, seeing an opportunity, entered the renewable energy market in 2006. With a new management team in place, Power-One put its focus on inverters for renewable energy use. The strategy has enabled the company to garner approximately 12% to 15% of the expanding renewable energy market, which is growing at about 25% to 30% a year. The company is headquartered in Camarillo in the L.A. metropolitan area. California, the nation’s leading hub of clean tech, is both the entrepreneurial center and one of the country’s biggest markets for the industry’s products, having offered incentives to schools and businesses to install solar arrays. With overall growth in the state’s economy slow, clean tech remains a bright spot.
Power-One connected with Bank of America when, with its ongoing expansion in the U.S. and abroad, it needed a bank with a global presence. In March 2011, Power-One closed on a three-year, $150-million revolving line of credit, with the option to increase it by $50 million, to be used for general corporate purposes including expansion of the design, production, service and sales of its renewable energy inverters.
Bank of America Merrill Lynch was well equipped to be the lead bank for the deal as the market leader in syndicated finance for companies with $50 million to $2.5 billion in revenue. In addition, Bank of America has a longstanding commitment to fund clean energy projects in California and across the country. It’s exciting to work with such a dynamic company.”
According to Rachel Morris, a commercial bank client manager at Bank of America, “This financing will help Power-One continue to grow with the renewable energy market. Power-One’s management team has done a great job executing on their strategy to become one of the world’s leading renewable energy inverter companies."
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