SolarCity Completes Industry's First Securitization of Distributed Solar Loans

SolarCity Completes Industry’s First Securitization of Distributed Solar Loans

SAN MATEO, Calif. — SolarCity Corp. (NASDAQ: SCTY) completed its first securitization of distributed solar loan assets earlier today; the company’s fifth securitization transaction to date. SolarCity completed a private placement in the amount of $185 million—$2.89 per watt of generation capacity in the portfolio—with a blended coupon interest rate of 5.17 percent and a blended yield rate of 5.81 percent. The anticipated repayment date is March 2022. The Class A Notes for SolarCity’s pool of solar loan contracts received an investment grade rating of BBB from Standard & Poor’s and Kroll Bond Rating Agency. The rating reflects the predictability […]

By Derick Lila January 22, 20160

SAN MATEO, Calif. — SolarCity Corp. (NASDAQ: SCTY) completed its first securitization of distributed solar loan assets earlier today; the company’s fifth securitization transaction to date.

SolarCity completed a private placement in the amount of $185 million—$2.89 per watt of generation capacity in the portfolio—with a blended coupon interest rate of 5.17 percent and a blended yield rate of 5.81 percent. The anticipated repayment date is March 2022.

The Class A Notes for SolarCity’s pool of solar loan contracts received an investment grade rating of BBB from Standard & Poor’s and Kroll Bond Rating Agency. The rating reflects the predictability and quality of the cash flows and the minimal operation and production risk of solar assets. With this transaction, solar loan assets were able to achieve an investment grade rating in the asset-backed securities markets for the first time.

Credit Suisse acted as sole structuring agent and sole bookrunner for the transaction.

About SolarCity

SolarCity (NASDAQ: SCTY) provides clean energy. The company has disrupted the century-old energy industry by providing renewable electricity directly to homeowners, businesses and government organizations for less than they spend on utility bills. SolarCity gives customers control of their energy costs to protect them from rising rates. The company makes solar energy easy by taking care of everything from design and permitting to monitoring and maintenance.