A renewable energy company is poised to raise $402 million in asset-backed securities (ABS), issuing notes that will be secured by a pool of payments on forward project revenues derived from a portfolio of 376 commercial and industrial photovoltaic (PV) systems.
Renewable energy company Luminace Holdings, is a subsidiary and the North American decarbonization platform of Brookfield Renewable Partners. Brookfield Renewable Partners owns and operates power assets and is a leader in decarbonization with a global portfolio of wind, solar and storage facilities.
Credit Suisse Securities, TD Securities, HSBC Securities, Scotia Capital and Wells Fargo Securities are initial note purchasers on the deal, according to a report from Kroll Bond Rating Agency.
The PV systems are grouped into 74 different projects, 46 of are subject to a master lease agreement between Sunbeam LeaseCo, LLC, a third party, and subsidiaries of the issuer, KBRA said.
Luminace ABS-2022 has a class ‘A’ note consisting of a $266.5-million tranche with an ‘A-’ preliminary KBRA rating. A second Class ‘B’ note has a $13.5-million tranche with a ‘BBB-’ rating from KBRA.
The Class ‘A’ notes have a loan-to-value of 59.29% and the Class ‘B’ notes have a loan-to-value of $89.43%. Both notes have credit enhancement in the form of excess spread, a liquid receive account and overcollateralization, according to the pre-sale report.
The interest is paid first on the Class ‘A’ notes and then on the Class ‘B’ notes, the report said.
The aggregate discounted solar asset balance “ADSAB” is about $449.5 million, the report said.
Luminace ABS-2022 is the issuer, and the sponsor/parent is Luminace Holdings. Brookfield Renewable DG US Operations is the manager and Computershare Trust Company, N.A. is the back-up servicer.
California, Maryland and Arizona represent 87.7% of the PV sites and the weighted average original tenor of the leases is 275 months, while the weighted average remaining tenor is 215 months, the report said.
