Mosaic (Oakland, California, U.S.), an U.S. provider of solar loan financing solutions for homeowners, on February 8th, 2017 announced it has closed the first securitization of its residential solar loan portfolio.
The Mosaic Solar Loans 2017-1 transaction
(“MSAIC 2017-1”) resulted in proceeds of USD 138.95 million and received
a “Green Bond” designation based on the standards published by the
International Capital Markets Association and pursuant to a report
issued by Sustainalytics U.S., Inc.
Mosaic has originated over USD 1 billion in solar
loans since inception and expects to be a frequent issuer in the
securitization markets, the company emphasizes.
Consumers shift away from solar leases to benefit from ownership of residential solar systems
This is the first securitization of consumer loans
secured by residential rooftop solar photovoltaic (PV) systems by
Mosaic. Solar loans are a growing asset class that is gaining market
share as consumers shift away from solar leases and increasingly choose
to benefit from ownership of residential solar systems.
“This is a huge step forward for the solar loan sector as well as for Mosaic,” said Billy Parish, Founder and CEO of Mosaic.
The offering consists of a single tranche of USD
138.95 million rate notes rated “A” by Kroll Bond Rating Agency. The
notes are modeled to a weighted average life of 4.06 years and are
backed by a collateral pool of USD 177.9 million of loans with an
average FICO score of 746. The deal generated overwhelming investor
demand and achieved an oversubscription level of 5.6 times the offering
size. Final pricing at 4.50% yield with a 4.45% stated coupon was well
inside of initial price talk. The deal settled on February 2nd, 2017.
Guggenheim Securities and BNP Paribas acted as
joint-lead bookrunners for the offering. Guggenheim Securities acted as
sole structuring agentsource: http://www.solarserver.com
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