SolarCity launches new solar bond program; bonds to be sold online

By Lisa Kerner

Charlotte, N.C., Sept. 11 – SolarCity Corp., a regular issuer of fixed-rate bonds with fixed maturities since 2013, launched a new redeemable bond program on Friday.

The company, which completed its initial public offering in 2012, placed distributed solar energy bonds back in November 2013.

More recently in August, SolarCity placed solar asset-backed notes and priced a series of solar bonds to be sold through Incapital LLC.

Redeemable solar bonds

The new redeemable solar bonds, with an initial issue of $50 million, will be sold on a continuous basis through SolarCity’s online platform at solarbonds.solarcity.com, according to a filing with the Securities and Exchange Commission.

The new three-month solar bonds offer short-term flexibility and an automatic rollover.

Interest rates on the series 2015/R1, 2015/R2 and 2015/R3 bonds are 1.1%, 1.25% and 1.4%, with initial minimum investments of $1,000, $10,000 and $100,000, respectively.

The redeemable solar bonds have no stated maturity and will pay a variable rate of interest that is subject to change from time to time, as determined by SolarCity’s chief financial officer or such other person or group of people as may be designated by the company’s board of directors.

Proceeds will be used for working capital and general corporate purposes, including capital expenditures, potential acquisitions and strategic transactions.

Interest on the bonds will be paid quarterly in arrears on the first day of each quarter to holders of record as of the 15th day of the last month in the immediately preceding quarter.

According to an SEC filing, the bonds will not be listed on any securities exchange, made available for quotation on any quotation system or rated by a rating agency at the time of issuance.

U.S. Bank NA is the trustee for the redeemable solar bonds.

San Mateo, Calif.-based SolarCity provides clean energy and financial products based on clean energy.

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