SolarCity wraps $54.43 million private placement of 4.8% bonds

By Marisa Wong

Madison, Wis., Nov. 21 - SolarCity Corp. completed its previously announced $54,425,000 private placement of 4.8% distributed solar energy bonds (BBB+//) on Thursday, according to a press release.

Credit Suisse acted as structuring agent and bookrunner for the 13-year asset-backed bonds.

According to the press release, this is the first securitization of distributed solar energy assets.

The notes are secured by, and payable solely from the cash generated by, a pool of photovoltaic systems and related leases and power purchase agreements and ancillary rights and agreements that will be owned by subsidiary SolarCity LMC Series I, LLC, according to a prior news release.

"This transaction is a breakthrough and will pave the way for others, but its greater significance is the validation of the quality of SolarCity's assets," Bob Kelly, SolarCity's chief financial officer, said in Thursday's release.

"Securitization gives us access to a new source of capital at a lower cost, and it allows us to more closely align our assets and liabilities," added Kelly. "We offer fixed price contracts, and by financing them with fixed rate debt, we bring a greater level of predictability to our financing activities."

SolarCity is a clean energy company based in San Mateo, Calif.

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