The company announced the pricing of the offering of $70.2 million with an interest rate of 4.59% and an anticipated repayment date of April 2022. The notes were priced on April 2, and the sale of the notes is expected to close on April 10.
SolarCity LMC Series II will secure the notes by, and pay them from the cash generated by, a collection of photovoltaic systems and related leases, power purchase agreements,, and ancillary rights and agreements. The subsidiary is responsible for the notes, and they aren't insured or guaranteed by SolarCity.
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TheStreet Ratings team rates SOLARCITY CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOLARCITY CORP (SCTY) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, poor profit margins, generally high debt management risk and feeble growth in its earnings per share."