Company Update (NASDAQ:SCTY): SolarCity Corp Announces Proposed Securitization

SolarCity Corp (NASDAQ:SCTY) announced that its wholly-owned subsidiary,SolarCity LMC Series IV, LLC, intends, subject to market and other conditions, to offer in a private placement $123,500,000 aggregate principal amount of Solar Asset Backed Notes, Series 2015-1 with an anticipated repayment date of February 21, 2022.  The offering will be made only (i) within the United States to persons who are qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933, as amended, and (ii) to certain non‑U.S. persons in offshore transactions in reliance on Regulation S under such Act.

These notes will be secured by the membership interests that will be owned by SolarCity LMC Series IV, LLC in certain indirectly owned subsidiaries ofSolarCity Corporation, each of which is the managing member of a fund that is jointly owned with a third-party fund investor and that acquired pools of solar energy systems and related leases and power purchase agreements and ancillary rights and agreements from SolarCity Corporation.  These notes will represent obligations solely of SolarCity LMC Series IV, LLC, and will not be insured or guaranteed by SolarCity Corporation or any other affiliate thereof, or by any other person or entity.

The securities to be offered will not be registered under the Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws. (Original Source)

Shares of SolarCity closed today at $56.03, up $1.34 or 2.45%. SCTY has a 1-year high of $79.40 and a 1-year low of $45.91. The stock’s 50-day moving average is $54.72 and its 200-day moving average is $54.83.

On the ratings front, SolarCity has been the subject of a number of recent research reports. In a report issued on July 24, Robert W. Baird analyst Ben Kallo upgraded SCTY to Buy, with a price target of $71, which implies an upside of 26.7% from current levels. Separately, on July 20, Deutsche Bank’s Vishal Shah reiterated a Buy rating on the stock .

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ben Kallo and Vishal Shah have a total average return of 9.4% and -13.7% respectively. Kallo has a success rate of 50.7% and is ranked #665 out of 3717 analysts, while Shah has a success rate of 24.4% and is ranked #3685.

Overall, one research analyst has assigned a Hold rating and 5 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 $81.75 which is 45.9% above where the stock opened today.

SolarCity Corp is engaged in designing, sale, engineering, installation, monitoring, maintenance and financing of solar energy systems to residential and commercial customers.

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