SolarCity plans to issue a $54.42 million private placement of solar asset backed notes, the company said in a press release today.
The Series 2013-1 deal will have a scheduled maturity date of December 2026. The notes will be secured by a pool of photovoltaic systems and related leases and power purchase agreements and ancillary rights and agreements that will be owned by SolarCity LMC Series I, LLC.
These notes will not be insured or guaranteed by SolarCity.
Solar securitizations have long been eyed as a financing alternative that can lower the weighted average cost of solar energy products for customers. It will also reduce exposure to developers.
However getting deals rated for an asset class that lacks historical performance data, is a challenge. SolarCity did not indicate in its press release if its first deal would be rated. A spokesperson at the company declined to comment further.