SolarCity announces the pricing of its second solar securitization. The $70,200,000 aggregate principal amount of Solar Asset Backed Notes, Series 2014-1 have an interest rate of 4.59% and an anticipated repayment date of April 2022.
SolarCity continues making advances in this area. Today, the company announced the pricing of its second securitization. As Greentech Media noted, this is yet another sign that solar is going mainstream.
This new SolarCity offering by its wholly owned subsidiary, SolarCity LMC Series II, LLC, is for an aggregate principal amount of $70,200,000 of Solar Asset Backed Notes, Series 2014-1 with an interest rate of 4.59% and an anticipated repayment date of April 2022.
The notes were priced on April 2, 2014 and were offered only to persons who are both (i) qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933, as amended, and (ii) qualified purchasers as defined in Section 2(a)(51) of the Investment Company Act of 1940, as amended, and the rules and regulations thereunder, for purposes of Section 3(c)(7) of such Act. Credit Suisse acted as sole structuring agent and sole bookrunner for the transaction.
The sale of the notes is expected to close on April 10, 2014, subject to customary closing conditions.
The notes will be secured by, and payable solely from the cash flow generated by, a pool of PV systems and related leases and power purchase agreements and ancillary rights and agreements that will be owned by SolarCity LMC Series II, LLC. These notes will represent obligations solely of SolarCity LMC Series II, LLC, and will not be insured or guaranteed by SolarCity Corporation or any other affiliate thereof, or by any other person or entity.
The securities priced today have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.