The Oakland-based company filed documents with the Securities and Exchange Commission on Monday for the $235.35m Mosaic Solar Loans 2018-1. Deutsche Bank and BNP Paribas are leading the deal.
Kroll Bond Rating Agency has assigned a single-A rating to the senior tranche, and a triple-B minus and double-B minus to the B and C class, respectively. The deal is backed by 9,152 loans with a weighted average balance of $28,186, according to the Kroll presale. The loans were originated to borrowers with FICO scores ranging from 640 to 850.
According to Wendy Zorick, vice-president of capital markets at Mosaic, the company is planning to be a regular issuer, and could bring one more securitzation this year, depending on market conditions. Zorick added that the company’s ABS strategy is part of a wider funding plan that includes whole loan sales and warehouse capacity.
Mosaic, which bills itself as a fintech firm similar to marketplace lenders such as Prosper and SoFi, issued two securitizations backed by loans financing residential solar installations in 2017. It also inked a deal with Goldman Sachs in September, agreeing to sell $300m worth of loans to the bank on a forward basis. Observers at the time wondered if the agreement would eat into the supply of Mosaic loans available for ABS, but the company issued a deal the next month at tight spreads.
The transaction, Mosaic Solar Loans 2017-2, was priced at 185bp over interpolated swaps for the senior class, yielding 3.854%. Energy related ABS such as solar and Property Assessed Clean Energy (Pace) deals were heavily subscribed throughout last year, with strong issuance of residential Pace bonds and the first ever issuance of commercial Pace ABS from Greenworks Lending.