Clean Power SolarCity_Solar_Panel_Installation_Van_in_Portland,_Oregon_(19526323073)

Published on January 24th, 2016 | by Adam Johnston

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SolarCity Completes $185 Million of Securitization Loans

January 24th, 2016 by  

Leading solar company SolarCity recently finalized its 5th securitization of loans, and the world’s 1st securitization of distributed solar loan assets, totaling $185 million.

With an expected repayment date of March 2022, SolarCity securitization’s are offering a blended yield rate of 5.81% and a blended coupon interest rate of 5.17%. Credit Suisse helped finalize the deal, both as agent and book runner.

SolarCity_Solar_Panel_Installation_Van_in_Portland,_Oregon_(19526323073)

Image Credit: SolarCity van by Tony Webster via WikiCommons (Some Rights Reserved)

Standard & Poor’s and Kroll Bond Rating Agency classified SolarCity’s Class A notes with a BBB grade. According to SolarCity’s statement, “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.”

SolarCity’s last securitization occurred in August 2015, with a total of $123 million in bonds.

As the solar energy industry continues to grow, financing will become an even more critical piece to entice customers, besides falling solar panel costs. The US added 1,361 MW of new solar capacity in Q3 2015, while Q4 was expected to be solar energy’s biggest quarter ever for US installations.

Friday’s SolarCity stock price was $32.30, up $0.26 from Thursday, January 21st.

 
 
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About the Author

Is currently studying at the School of the Environment Professional Development program in Renewable Energy from the University of Toronto. Adam graduated from the University of Winnipeg with a three-year B.A. combined major in Economics and Rhetoric, Writing & Communications. Adam also writes for Solar Love and also owns his own part time tax preparation business. His eventual goal is to be a cleantech policy analyst, and is currently sharpening his skills as a renewable energy writer. You can follow him on Twitter @adamjohnstonwpg or at www.adammjohnston.wordpress.com.



  • neroden

    I still worry about default risk which has not been adequately explained.

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