TIP Borrower Holdings aims to sell $140.2 million in asset-backed securities to investors, through its latest sponsored deal, TIP Solar ABS 2025-2, that is almost exactly like the deal that the platform brought to market in September.
This is the second securitization this year of loans that GoodLeap originated backed by residential solar leases and power purchase agreements (PPAs) that underpin the deal, according to Kroll Bond Rating Agency. Also like the previous deal, TIP 2025-2 will issue the notes through two class A and B tranches, according to Kroll Bond Rating Agency.
Both tranches have an anticipated repayment date of December 2032, and a final maturity date of December 2055, KBRA said.
ATLAS SP Securities, a division of Apollo Global Securities, is the structuring agent.
As of November 15, the total aggregate discounted solar asset balance (ADSAB), or ADSAB, which is the discounted lease and power purchase agreements payments after operating and maintenance expenses, is about $202 million, KBRA said.
As of the cut-off date, the securitization share of ADSAB and cashflows payable to the cash equity holder, is about $200 million and $171.4 million, respectively, KBRA said.
The capital structure includes an available funds piece, which is cash flow related to the portfolio net of operation and management expenses, administrative and insurance expenses. Notes also benefit from overcollateralization that represents 18.2% of the note balance, KBRA said.
TIP Solar ABS 2025-2's class A notes also benefit from subordination from the class B notes, which provides an additional 7.4% of credit enhancement to the senior notes.
Two cash accounts help maintain cash flow to the notes, a liquidity reserve account that will be fully funded to its required amount equal to six months of interest on the class A and class B notes, and a supplemental reserve account funded with $1 million at closing.
KBRA assigns A- and BBB- to the class A and class B notes, respectively.
