Mosaic issues its first solar loan securitization, raises $138.95 million from green bond

Written By: Stratton Report
February 8, 2017

solar term securitization Mosaic 2 m

On February 8, Mosaic, a provider of solar loan financing solutions for homeowners, announced it has closed the first securitization of its residential solar loan portfolio, with Guggenheim Securities and BNP Paribas acting as joint-lead bookrunners for the offering and Guggenheim Securities acting as sole structuring agent.

Per the firm, the Mosaic Solar Loans 2017-1 transaction resulted in proceeds of $138.95 million and received a “green bond” designation based on the standards published by the International Capital Markets Association and pursuant to a report issued by Sustainalytics US, Inc. 

Mosaic claims it has originated over $1 billion in solar loans since inception and expects to be a frequent issuer in the securitization markets.

Billy Parish, Founder and CEO of Mosaic remarked:

This is a huge step forward for the solar loan sector as well as for Mosaic. We have sustainable and scalable funding to support our partners. With such an enthusiastic response from the investor community, we know this is just the first of many offerings.

According to Mosaic, the offering consisted of a single tranche of $138.95 million rate notes rated “A” by Kroll Bond Rating Agency.  The notes are modeled to a weighted average life of 4.06 years and are backed by a collateral pool of $177.9 million of loans with an average FICO score of 746.  

Mosaic emphasized that the deal generated overwhelming investor demand and achieved an oversubscription level of 5.6 times the offering size.   Final pricing at 4.50% yield with a 4.45% stated coupon was well inside of initial price talk. The deal settled on February 2, 2017.