Ygrene Energy Fund is marketing $340.57 million of bonds backed by a mix of commercial and residential Property Assessed Clean Energy assets in California and Florida, according to Morningstar.
This will be Ygrene’s first transaction with a prefunding period, during which up to 32.5% of target collateral balance may be acquired by the issuer within the three months following the closing date (by July 27, 2018) or until the first default occurs.
The securitization trust, GoodGreen 2018-1, will issue a single tranche of notes that Morningstar has provisionally rated AAA. S&P Global Ratings has assigned an early AA rating to the deal.
Nomura is the sole structuring agent and bookrunner; Deutsche Bank Securities is a co-bookrunner.
The underlying collateral includes 55.1% California and 44.9% Florida PACE assets by principal balance. In addition, 94.1% of the PACE assets by principal balance are on residential properties and 5.9% are on commercial properties. PACE assets on the commercial properties are small in balance, ranging from $2,586 to $647,613, with an average original balance of $90,696. The properties are located in 42 California counties and 13 Florida counties.