United States: SolarCity Notes Update—4.80% Yield

Last week, we posted that SolarCity is offering a private placement of $54.4 million of securitized solar notes, and the interest rate on the notes was recently just announced.  The notes will have an interest rate of 4.80% (assuming no issuance discount) and will be secured by, and payable solely from the cash flow generated 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.  Shayle Kann, GreenTechMedia 's VP of research, commented that this is potentially "a bigger deal than a solar REIT or MLP."  A positive credit rating and strong reception could "open the floodgates" of solar finance, according to Kann. The note is BBB+-rated and SolarCity stock is up 5 percent to $56.66 per share. ¹

Footnotes

^{1 SolarCity Announces Yield of Securitized Solar Notes, Eric Wesoff, November 14, 2013, GreenTechMedia, http://www.greentechmedia.com}

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