SolarCity Completes $185 Million of Securitization Loans

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.

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.