By Marisa Wong
Morgantown, W.Va., Feb. 8 – Mosaic announced it closed the first securitization of its residential solar loan portfolio on Feb. 2, raising $138.95 million.
This is the first securitization of consumer loans secured by Mosaic’s residential rooftop solar systems, according to a press release. The Mosaic Solar Loans 2017-1 transaction received a green bond designation based on the standards published by the International Capital Markets Association and according to a report issued by Sustainalytics US, Inc.
The offering consists of a single $138.95 million tranche of notes with a weighted average life of 4.06 years and backed by a collateral pool of $177.9 million of loans with an average FICO score of 746.
The 4.45% notes were priced to yield 4.5%, well inside of initial price talk, according to the release.
Guggenheim Securities and BNP Paribas acted as joint lead bookrunners.
The notes have been rated A by Kroll Bond Rating Agency.
The deal generated overwhelming investor demand and was 5.6 times oversubscribed.
“This is a huge step forward for the solar loan sector as well as for Mosaic,” founder and chief executive officer Billy Parish said in the release. “We have sustainable and scalable funding to support our partners. With such an enthusiastic response from the investor community, we know this is just the first of many offerings.”
The company said it has originated over $1 billion of solar loans since inception and expects to be a frequent issuer in the securitization markets. 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, the company said.
Mosaic provides solar energy financing and is based in Oakland, Calif.
| Issuer: | Mosaic
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| Issue: | Mosaic Solar Loans 2017-1
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| Amount: | $138.95 million
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| Maturity: | 4.06 years (average)
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| Coupon: | 4.45%
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| Yield: | 4.5%
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| Bookrunners: | Guggenheim Securities and BNP Paribas
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| Settlement date: | Feb. 2
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| Rating: | Kroll Bond Rating Agency: A
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