By Lisa Kerner
Charlotte, N.C., Jan. 14 – SolarCity Corp. subsidiaries entered into a new $200 million nonrecourse financing facility with Credit Suisse AG, New York Branch on Jan. 9.
The conduit financing provides up to $200 million of variable funding notes, with up to $160 million of class A notes and up to $40 million of class B notes.
The notes mature on Jan. 20, 2017.
Outstanding class A notes bear interest at a rate per annum equal to cost of funds plus an applicable margin of 2.5%. Outstanding class B Notes bear interest at a rate per annum equal to cost of funds plus an applicable margin of 5%, according to a form 8-K filed with the Securities and Exchange Commission.
SolarCity may voluntarily prepay any outstanding notes upon notice written notice without premium or penalty, other than customary breakage costs.
Interest and principal payments on outstanding notes will be made monthly, the filing stated.
The company will use the funds to purchase of solar energy systems through its new MyPower loan program.
“The new facility is the first of its kind and offers the lowest interest rate of any solar financing facility we've seen,” said SolarCity chief financial officer.
“We expect it to be the first of a large array of financing we create this year to support MyPower's growth.”
Credit Suisse acts as the structuring agent and administrative agent, and U.S. Bank is the trustee for the financing facility.
SolarCity expects to refinance the facility in the securitization market, according to a news release.
| Issuer: | SolarCity Corp.
|
| Issue: | Nonrecourse financing facility
|
| Amount: | $200 million
|
| Maturity: | Jan. 20, 2017
|
| Agent: | Credit Suisse AG
|
| Trustee: | U.S. Bank
|
|
|
| Class A
|
| Amount: | $160 million
|
| Coupon: | Cost of funds plus an applicable margin of 2.5%
|
|
|
| Class B
|
| Amount: | $160 million
|
| Coupon: | Cost of funds plus an applicable margin of 5%
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
