Mosaic, a leading financing platform for U.S. residential solar and energy-efficient home improvement projects, closed a $331 million securitization of residential solar loans. The offering included 26 unique investors, including insurance companies, money managers, banks, pension funds and hedge funds, making it the company’s most successful issuance yet.
“We were pleased to beat expectations from an all-in spread, coupon and yield perspective,” said Billy Parish, founder and CEO of Mosaic. “The yield on our senior class of notes in this translation was inside of 100 basis points, which we believe is an industry first. This low cost of funds will benefit our partners and homeowners as we continue to bring the most innovative financial products to the market.”
The transaction closed on March 10, 2021 and consisted of four classes of notes rated by Kroll Bond Rating Agency from “AA-” to “BB-” with weighted average lives ranging from 2.82 to 5.11 years. Deutsche Bank was the structuring agent and bookrunner for MSAIC 2021-1, and the Royal Bank of Canada and BNP Paribas were joint bookrunners. The bonds are compliant with Green Bond principles, according to Sustainalytics US, Inc.
This securitization follows Mosaic’s recent announcement of surpassing $4 billion in loans funded through its platform since 2012. The Mosaic Solar Loans 2021-1 transaction (“Mosaic 2021-1”), is Mosaic’s ninth loan securitization to date, which is more than any other solar loan issuer in the space.
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