SolarCity Completes First Securitization of Distributed Solar Loan Assets

Business January 25, 2016

Chadbourne & Parke LLP advised SolarCity on its first securitization of distributed solar loan assets. The transaction marked the first time that solar loan assets were able to achieve an investment grade rating in the asset-backed securities markets. 

This is the fifth securitization deal for SolarCity, and Chadbourne has advised the company on each transaction. SolarCity’s first securitization in November 2013 was the industry’s very first securitization of distributed (rooftop) solar energy assets. Access to the securitization market has allowed SolarCity and the distributed solar generation industry as a whole to access an additional pool of capital to finance growth.

“SolarCity is a market leader in distributed solar, and this financing allows them to have greater flexibility as they pursue additional growth opportunities in this fast-moving sector,” said Andrew Coronios, the lead partner from Chadbourne advising SolarCity on this transaction.

SolarCity’s US$185 million private placement is equivalent to US$2.89 per watt of generation capacity in the solar portfolio. The securities carry a coupon interest rate of 5.17 percent and a blended yield rate of 5.81 percent. The anticipated repayment date is March 2022.

The Chadbourne team advising SolarCity was led by partner Andrew Coronios and included partners Richard Leder, Keith Martin, Sey-Hyo Lee and Marjorie Glover, counsel Christy Rivera, associates Ross Shepard and Margaret Weil, and law clerk Li Litombe.

Coronios was previously honored as a “Dealmaker of the Year” by The American Lawyer for his work on SolarCity’s debut securitization in 2013, and more recently a 2015 Energy and Environmental Trailblazer by The National Law Journal.

About SolarCity

SolarCity (NASDAQ: SCTY) provides clean energy. The company has disrupted the century-old energy industry by providing renewable electricity directly to homeowners, businesses and government organizations for less than they spend on utility bills. SolarCity gives customers control of their energy costs to protect them from rising rates. The company makes solar energy easy by taking care of everything from design and permitting to monitoring and maintenance.

About Chadbourne & Parke

For more than a century, Chadbourne & Parke has counseled innovators around the world. We are a full-service law firm that leverages the extraordinary talent from our 11 international offices to offer the highest caliber client service in more than 80 countries on six continents. Today, we are recognized internationally for our groundbreaking work in emerging economies and our deep experience in energy and infrastructure, corporate and finance transactions, international disputes, and bankruptcy and financial restructuring.

Originally prepared by Chadbourne & Parke. Chadbourne & Parke combined with Norton Rose Fulbright US LLP on June 30, 2017 and is now known as Norton Rose Fulbright US LLP.