June 30, 2020
Mosaic, a leading provider of financing solutions for residential solar home improvement and energy efficiency projects in the United States, today closed a securitization of $ 280 million of residential solar loans. With considerable investor interest in Mosaic’s high quality assets, the offering was oversubscribed several times and was placed with over 25 institutional investors, deepening the relationship with existing investors and attracting nine new participants.
“Our ability to securitize solar loans in this challenging market environment is a vote of confidence in solar energy as an asset class. It is also a testament to the value the financial markets place on Mosaic’s consistent performance and high quality standards, ”said Billy Parish, Founder and CEO of Mosaic. “This securitization represents the highest level of investor demand we have ever seen and demonstrates the market’s appetite for our clean energy backed assets. “
Mosaic was also recently named the winner of “Esoteric ABS Deal of the Year” by GlobalCapital for its $ 208 million Mosaic 2019-2 solar loan transaction from November 2019. The award recognizes outstanding achievement in finance structured in the United States, and nearly 2,300 market experts voted to determine the winners.
Closed on June 25, the $ 280 million offer consists of four tranches of bonds rated by Kroll Bond Rating Agency from “AA-” to “BB +” with a weighted average maturity ranging from 1.95 to 5, 06 years old. The notes are backed by $ 315 million in solar loans with a weighted average FICO score of 753. Due to the heavy oversubscription, all tranches were priced within initial benchmarks.
“Solar asset-backed securities are growing in popularity as institutional investors recognize their value for long-term return,” said Alex Kaplan, senior director of capital markets for Mosaic. “We are proud to be recognized by our peers in the capital markets and appreciate the commitment of the banks that brought this transaction to the market. “
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Over $ 3.5 billion in solar loans have been funded through the Mosaic platform since its inception in 2012. Mosaic will continue to be a frequent issuer in the securitization market. The Mosaic Solar Loans 2020-1 (“MSAIC 2020-1”) transaction is Mosaic’s seventh solar loan securitization.
Deutsche Bank was the sole structuring agent, and Royal Bank of Canada and BNP Paribas acted as associate bookkeepers for MSAIC 2020-1. The bonds are designated as “green bonds” based on International Capital Markets Association standards and in accordance with a report published by Sustainalytics US, Inc. The award-winning 2019 transaction was completed with BNP Paribas and Deutsche Bank.
The securitization and attribution follow Mosaic’s recent announcement of a $ 50 million expansion and two-year extension of its BNP Paribas warehouse earlier this year.
Key words: Mosaic