About the Course
Introduction
This CLE course will discuss solar securitization, examining its role in solar financing and challenges to anticipate. The panel will guide counsel on leveraging solar securitization as an alternative financing tool while protecting investor tax benefits.
Description
Continued growth in the solar industry depends on its access to capital. One of the most innovative ways that solar companies have been using to access capital is through the securitization market.
Solar's growth has been propelled by the use of a third-party financing model where solar systems are owned by third parties who lease them or provide power to customers under long-term leases and power purchase agreements.
Both models are a good fit for securitization. Securitization is an emerging strategy for solar financing that gives developers access to capital markets to get favorable financing opportunities. Investors and customers also benefit from solar securitization.
The securitization of solar assets can play a crucial role in meeting the rising demand for solar financing. However, securitization must be structured to avoid jeopardizing the tax benefits in the underlying tax equity transactions while satisfying the requirements of the securitization market.
Listen as our authoritative panel examines the role of securitization for solar transactions, and provides guidance for how these deals are being structured and what to expect in the markets in 2020 and beyond.
Presented By
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Mr. Lowder is a member of the firm’s Finance Practice Group, the Energy & Infrastructure Sector, and the firm’s Electrified Mobility Initiative. He focuses his practice on energy, project finance, project development, electric vehicle infrastructure innovation and development, and related tax and public financing. Mr. Lowder focuses on incorporating recent tax credit transfer structures into financing transactions and utilizing risk mitigants such as the growing energy-related insurance products and public-private partnerships (P3) as part of the ownership and financing structures evolving in this space. He has unique experience representing lenders, other financing parties, investors, and sponsors in innovative financing structures for P3 energy project financings, private placements, and bank and non-bank lending facilities. Mr. Lowder has assisted clients with utility-scale, residential and commercial, and industrial solar power projects (including for community solar power projects incorporating energy storage components), energy storage projects, electric vehicle deployment and related electrified mobility infrastructure projects, and large-scale wind projects in addition to his familiarity with other energy project technologies including offshore wind development, LNG terminals, combined heat and power/district heating and cooling projects, biomass and biofuel projects, and other energy and alternative energy technologies.
Mr. Reisler has over 30 years of experience representing clients in a wide variety of finance and mergers and acquisitions, transactions with a particular focus on renewable energy. He represents lenders and borrowers in solar, energy storage, wind, geothermal and renewable natural gas project financings. Mr. Reisler also works on securitizations of residential solar and rural small wind assets. He frequently represents lenders providing “back leverage” credit facilities to tax-equity financed projects. Mr. Reisler's experience includes representing lenders in recapitalizations of private equity sponsored renewable projects. He has also represented investors in preferred equity financings of LEED certified real estate projects. Mr. Reisler has considerable experience helping lenders navigate the complexity of renewable project finance borrowers in Chapter 11 bankruptcy, advising in negotiations with the Chapter 11 trustee, tax-equity investors, cash-equity investors, O&M service providers and other creditors.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Thursday, June 18, 2020
- schedule
1:00 p.m. ET./10:00 a.m. PT
- Role of securitization in financing solar transactions
- Basic terms
- Key requirements
- Basic securitizations without tax equity
- Combining securitizations with tax equity
- Inverted leases
- Flip partnerships
- Asset and structure risks
- Tax insurance
- The future of solar securitizations
The panel will review these and other key issues:
- What role is securitization playing in financing solar lease models?
- What are some of the structural challenges in securitizing solar assets?
- What transaction structures are emerging in the securitization space to address non-residential solar assets?
- How are strategic alliances between sponsors, loan originators and securitization market players changing the market?
- What are the risks associated with solar securitization? How are they being mitigated? What role can tax insurance play?
