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​.solarcity​.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.