SolarCity Completes Fourth Securitization Offering

SolarCity Press Release
August 13, 2015

SAN MATEO, Calif., Aug. 13, 2015 /​PRNewswire/​ — SolarCi­ty Corp. (Nas­daq: SCTY) today com­plet­ed its Solar Asset Backed Notes, Series 2015–1, a secu­ri­ti­za­tion of dis­trib­uted solar ener­gy assets. The notes con­sist of a senior class of notes (Class A Notes) in an amount of $103,500,000 aggre­gate prin­ci­pal amount that will have an inter­est rate of 4.18% The junior class of notes (Class B Notes) con­sists of $20,000,000 aggre­gate prin­ci­pal amount that will have an inter­est rate of 5.58%. Both class­es of notes have an antic­i­pat­ed repay­ment date of Feb­ru­ary 21, 2022.
SolarCi­ty’s senior class of notes (Class A Notes) received an invest­ment grade rat­ing of A from Kroll and junior class of the notes (Class B Notes) received a rat­ing of BBB from Kroll. 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.

This trans­ac­tion rep­re­sents the first secu­ri­ti­za­tion of dis­trib­uted solar assets that were orig­i­nal­ly financed with­in a tax equi­ty part­ner­ship struc­ture, a sig­nif­i­cant devel­op­ment giv­en the preva­lence of part­ner­ship struc­tures in the solar indus­try. Though it has secu­ri­tized a rel­a­tive­ly small per­cent­age of its total assets to date, SolarCi­ty has now com­plet­ed at least one syn­di­ca­tion of each of its most com­mon financ­ing struc­tures with an invest­ment grade cred­it rating.

The Co-Struc­tur­ing Agents and Joint Bookrun­ners were Bank of Amer­i­ca Mer­rill Lynch and Cred­it Suisse and the Co-Man­ag­er was Apto Part­ners, which is a minor­i­ty own­er-deal­er based in New Jer­sey. Inspired by the sup­pli­er diver­si­ty pro­gram at the Cal­i­for­nia Pub­lic Util­i­ty Com­mis­sion, SolarCi­ty worked with DBL Part­ners to find and col­lab­o­rate with Apto and give a broad­er range of investors and advi­sors the oppor­tu­ni­ty to par­tic­i­pate in solar financing.

This press release shall not con­sti­tute an offer to sell or the solic­i­ta­tion of an offer to buy these secu­ri­ties, and there shall not be any offer or sale of these secu­ri­ties in any state in which such offer, solic­i­ta­tion or sale would be unlawful.

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. Vis­it the com­pa­ny online at www​.solarci​ty​.com and fol­low the com­pa­ny on Face­book & Twitter.
This release con­tains for­ward-look­ing state­ments includ­ing, but not lim­it­ed to, state­ments regard­ing future cash­flows and antic­i­pat­ed repay­ment. 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. 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. We do not under­take any oblig­a­tion to pub­licly update or revise any for­ward-look­ing state­ment, whether as a result of new infor­ma­tion, future devel­op­ments or otherwise.

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SOURCE SolarCi­ty Corp.