SolarCity Completes Industry's First Securitization of Distributed Solar Loans

SolarCity's Fifth Asset-Backed Securitization Achieves Industry's First Investment Grade Credit Rating for Solar Loans

Jan 21, 2016, 22:34 ET from SolarCity

SAN MATEO, Calif., Jan. 21, 2016 /PRNewswire/ -- 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. Visit the company online at www.solarcity.com and follow the company on Facebook & Twitter.

This release contains forward-looking statements including, but not limited to, statements regarding SolarCity's expected cost reductions and future transactions, risk of default and other statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements, including the risk that the timing of the transaction is delayed or the closing conditions are not satisfied. You should read the section entitled "Risk Factors" in SolarCity's quarterly report on Form 10-Q, which has been filed with the Securities and Exchange Commission and identifies certain of these and additional risks and uncertainties. SolarCity does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

 

SOURCE SolarCity



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