SolarCity Corp (NASDAQ:SCTY) 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, SolarCityworked 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. (Original Source)
Shares of SolarCity opened today at $50.25 and are currently trading slightly up at $50.27. SCTY has a 1-year high of $75.90 and a 1-year low of $45.91. The stock’s 50-day moving average is $54.42 and its 200-day moving average is $55.30.
On the ratings front, SolarCity has been the subject of a number of recent research reports. In a report issued on August 3, Morgan Stanley analyst Stephen Byrd maintained a Hold rating on SCTY, with a price target of $93, which represents a potential upside of 85.1% from where the stock is currently trading. Separately, on July 30, Canaccord Genuity’s Jonathan Dorsheimer reiterated a Buy rating on the stock and has a price target of $76.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Stephen Byrd and Jonathan Dorsheimer have a total average return of 3.2% and -1.2% respectively. Byrd has a success rate of 60.0% and is ranked #1868 out of 3734 analysts, while Dorsheimer has a success rate of 39.8% and is ranked #2999.
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 62.7% 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.