SAN MATEO, Calif., Nov. 21, 2013 (GLOBE NEWSWIRE) -- SolarCity Corp. (Nasdaq:SCTY) today announced that it has completed what is reported to be the first securitization of distributed solar energy assets. SolarCity completed a private placement in the amount of $54,425,000 with an interest rate of 4.80% and a scheduled maturity date of December 2026.
"This transaction is a breakthrough and will pave the way for others, but its greater significance is the validation of the quality of SolarCity's assets," said Bob Kelly, SolarCity's chief financial officer. "SolarCity lowers what is typically the highest operating cost for households and gives them long-term control over that cost. Customers highly value those attributes, and that's why these assets perform so well."
SolarCity's pool of solar contracts received an investment grade rating of BBB+ from Standard & Poor's. The rating reflects the predictability and quality of the cash flows and the minimal operation and production risk of solar assets. Distributed solar is one of the first new asset classes to achieve an investment grade rating in the asset back securities markets in the past several years.
"Securitization gives us access to a new source of capital at a lower cost, and it allows us to more closely align our assets and liabilities," continued Kelly. "We offer fixed price contracts, and by financing them with fixed rate debt, we bring a greater level of predictability to our financing activities."
Credit Suisse acted as sole structuring agent and sole bookrunner for the transaction.
"The transaction represents a tremendous breakthrough for SolarCity and the distributed generation solar industry," said Steve Viscovich, Credit Suisse banker. "By accessing the securitization market, SolarCity has tapped into a large pool of highly efficient capital that can be used to fund its continued growth while significantly reducing its costs at the same time."
As part of the rating process, SolarCity hired independent engineering firm EL Garrad Hassan to perform a technical and operational review of both SolarCity Corporation and the pool of assets. EL Garrad Hassan's assessment of SolarCity's full-service model—including design and installation process and quality, system performance against forecasts, servicing standards, procedures and history—demonstrated SolarCity's exemplary asset quality.
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 offers solar power, energy efficiency and electric vehicle services, and makes clean energy easy by taking care of everything from design and permitting to monitoring and maintenance. SolarCity currently serves 14 states and signs a new customer every five minutes. Visit the company online at www.solarcity.com and follow the company on Facebook & Twitter.
This release contains forward-looking statements including, but not limited to, statements regarding SolarCity's expected cost reductions and future transactions, risk of default and other statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements, including the risk that the timing of the transaction is delayed or the closing conditions are not satisfied. You should read the section entitled "Risk Factors" in SolarCity's quarterly report on Form 10-Q, which has been filed with the Securities and Exchange Commission and identifies certain of these and additional risks and uncertainties. SolarCity does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
CONTACT: Media Contact SolarCity Jonathan Bass 650.963.5156 email@example.com