CleanFund launches debut commercial PACE deal

CleanFund Commercial PACE Capital has launched its maiden asset-backed securitization.

  • By Fotios Tsarouhis
  • 11 Jul 2018
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The $109.3m single tranche deal, CLEAN 2018-1, is only the second rated commercial Property Assessed Clean Energy (PACE) deal to come to market, following an issuance from Greenworks Lending last year.

DBRS assigned the single-tranche deal a preliminary AAA rating in a July 9 presale.

California-based CleanFund has been expected to issue an ABS offering at some point this year after failing to meet its earlier goal of issuing a deal in 2017.

A Credit Suisse-led deal that had been slated for July or August 2017 never actually materialised.

PACE deals securitize loans taken out by property owners to finance energy efficiency improvements or renewable energy installations.

Unlike residential PACE deals, mortgage lenders must sign off on a commercial PACE securitization deal. This sometimes complicates the process, as PACE loan repayments are senior to the property’s mortgage. 

The PACE assets included in this deal are secured by a pool of PACE assessments at 82 properties spread across six states.

California houses the bulk of these properties, with 45 of them situated in the Golden State, with an additional 31 properties located in Connecticut and three more in Missouri.

The portfolio also includes individual properties in Colorado and Ohio, as well as Texas, whose Butler Brothers Building in Dallas represents 20.27% of the principal balance. That building and the other top four properties represent a 59.83% majority of the PACE assets.

PACE assets included in the deal have a weighted average annual interest rate of 6.19% and a weighted average original term of 22.9 years.

  • By Fotios Tsarouhis
  • 11 Jul 2018

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 10,542 20 18.54
2 Bank of America Merrill Lynch (BAML) 6,103 21 10.73
3 Citi 5,130 13 9.02
4 JP Morgan 4,681 6 8.23
5 Lloyds Bank 3,389 13 5.96

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 70,706.84 201 11.60%
2 Bank of America Merrill Lynch 60,472.76 166 9.92%
3 Wells Fargo Securities 48,082.68 138 7.89%
4 JPMorgan 48,046.47 137 7.88%
5 Credit Suisse 38,252.19 94 6.28%