SolarCity Corp (NASDAQ:SCTY) completed its first securitization of distributed solar loan assets earlier today; the company’s fifth securitization transaction to date. SolarCity completed a private placement in the amount of $185 million—$2.89 per watt of generation capacity in the portfolio—with a blended coupon interest rate of 5.17 percent and a blended yield rate of 5.81 percent. The anticipated repayment date is March 2022.
The Class A Notes for SolarCity’s pool of solar loan contracts received an investment grade rating of BBB from Standard & Poor’s and Kroll Bond Rating Agency. The rating reflects the predictability and quality of the cash flows and the minimal operation and production risk of solar assets. With this transaction, solar loan assets were able to achieve an investment grade rating in the asset-backed securities markets for the first time.
Credit Suisse acted as sole structuring agent and sole bookrunner for the transaction. (Original Source)
Shares of SolarCity closed yesterday at $31.77. SCTY has a 1-year high of $63.79 and a 1-year low of $24.07. The stock’s 50-day moving average is $44.48 and its 200-day moving average is $44.23.
On the ratings front, SolarCity has been the subject of a number of recent research reports. In a report released yesterday, Axiom analyst Gordon Johnson maintained a Sell rating on SCTY. Separately, on January 14, Bernstein Research’s Hugh Wynne maintained a Buy rating on the stock and has a price target of $62.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Gordon Johnson and Hugh Wynne have a total average return of 25.8% and 3.2% respectively. Johnson has a success rate of 75.8% and is ranked #13 out of 3579 analysts, while Wynne has a success rate of 57.1% and is ranked #1493.
Overall, one research analyst has rated the stock with a Sell rating, 2 research analysts have assigned a Hold rating and 7 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $68.00 which is 114.0% above where the stock closed yesterday.
SolarCity Corp is engaged in designing, sale, engineering, installation, monitoring, maintenance and financing of solar energy systems to residential and commercial customers.