DSD Renewables has raised $155 million in debt financing for the primary business and industrial (C&I) photo voltaic asset-backed securitization (ABS) with a big focus of group photo voltaic belongings. The transaction, which is DSD’s first issuance of asset-backed securities, was structured and underwritten by Credit score Suisse Securities (USA) LLC.
DSD’s ABS portfolio consists of about 56% onsite photo voltaic and 44% group photo voltaic, together with C&I and distributed technology tasks throughout 11 states, with offtakers benefiting from decreased electrical energy prices and state photo voltaic incentive applications.
“This transaction is a vital step in DSD’s mission to speed up the deployment of renewable power,” says Jamie Hutson, DSD’s chief funding officer. “We have now established a path to marketplace for a considerable inclusion of group photo voltaic, which is able to allow entry to scrub, reasonably priced power for a bigger pool of consumers.”
Being DSD’s first ABS, its structured finance, group photo voltaic and authorized groups partnered with exterior counsel and third-party consultants to teach the investor group on C&I photo voltaic, significantly group photo voltaic. As one of many first photo voltaic securitizations to incorporate a good portion of group photo voltaic, DSD labored carefully with businesses and traders to raised perceive group photo voltaic income buildings and to adequately assess threat by means of a data-driven strategy. This course of will streamline DSD’s subsequent issuances, and function an emulative business mannequin for different issuers to convey group photo voltaic belongings to the debt capital market.
“As a first-time issuer inside a more moderen asset class, it was important that we thought of all related threat and strategized with businesses, consultants and our bankers to make sure an optimum final result,” feedback Ian Manchester, DSD’s vice chairman of structured finance. “With our first securitization below our belt, we stay up for future issuances which is able to proceed to drive business photo voltaic adoption and widen entry to group photo voltaic tasks.”
Internet proceeds from the transaction shall be used to pay down current debt on DSD’s belongings and assist its enterprise development on the venture origination and acquisitions entrance. Credit score Suisse acted as sole structuring agent and sole bookrunner for this transaction. Sidley Austin LLP acted as counsel to DSD, and Mayer Brown acted as counsel for Credit score Suisse.
Up to now, DSD has raised over $1.5 billion in funding to assist its development and speed up photo voltaic venture deployment. DSD intends to situation asset-backed securities each six to 12 months.
Picture: “Putting in photo voltaic panels” by OregonDOT is licensed below CC BY 2.0.