A pool of 15 property assessed clean energy (PACE) loans will secure an $18.8 million securitization from the Calvert Impact Climate, 2024-1. The deal is structured as an indenture that will allow for the issuance of future series of notes.
Calvert Impact Inc., a Bethesda, Md., company, is the sole member of Calvert Impact Capital, the entity that offers investment strategies and securities offerings, according to ratings analysts at DBRS Morningstar. Calvert Impact will sponsor the securitization, which will issue three tranches of A, B and C notes. The current deal represents Calvert Impact's second securitization, according to DBRS Morningstar.
The rating agency noted that $52.6 million in commercial PACE assets constitute collateral for the current deal, while Calvert had $471 million in total C-PACE assets outstanding.
Calvert Impact will act as master servicer on the deal and master portfolio administrator, DBRS said. Calvert Impact Group receives ongoing reporting from US Bank and monitors the timely receipt of all C-PACE payments. PACE Equity, which partners with Calvert to offer the financing, also monitors the assets on its RAMP system, the rating agency said.
Slated to close on June 28, the deal gets credit enhancement from overcollateralization, a liquidity reserve account and excess cash flow. If a loss trigger is breached, the class A notes benefit from class B and class C subordination, while the class B notes get subordination protection from the class C, DBRS said. When this series of notes closes, overcollateralization will be 7.80%, the rating agency said.
The notes have a legal final maturity date of Dec. 15, 2053, DBRS said. It assigns AAA to the A notes; AA to the class B notes and BBB to the class C notes.
