GoodLeap returns to raise $358.9 million in solar ABS

GoodLeap Sustainable Home Solutions Trust, 2022-2, is preparing a $358.9 million securitization of a pool of home improvement and solar loans, most of which are of prime quality.

Lime Residential will sponsor the transaction, for which Credit Suisse Securities is the structuring agent. Credit Suisse is also an initial note purchaser, along with Goldman Sachs, according to a pre-sale report from Kroll Bond Rating Agency.

After GoodLeap 2022-2 originated the loans, those assets made their way through a chain of entities including so-called transferring entities and Lime Residential, until they wound up with Credit Suisse Finance LLC, the depositor to the trust by the March 4, 2020, cutoff date.

GoodLeap, 2022-2, will issue the notes through three classes, with subordination among the classes A and B notes, KBRA said.

Solar loans have balances of $5,000-$125,000, with original terms of 7-25 years and interest rates between 1.48%-8.49%, according to KBRA. The Home Efficiency Loans have balances ranging from $1,000-$100,000, with original terms of 2-20 years.

The notes benefit from overcollateralization (OC), yield supplement overcollateralization (YSOC), and a reserve account.

KBRA expects to assign ratings of ‘A’ on the $299.6 million class A notes; ‘BBB’ on the $30.3 million, class B notes; and ‘BB’ on the $28.9 million class C notes. The rating agency noted several positive credit aspects to the transaction, including GoodLeap’s strong liquidity position.

GoodLeap 2022-2’s YSOC is calculated on a timeline around the transaction’s cutoff date and each distribution date. It is equal to the excess of the present value of all future scheduled payments on the Sustainable Home Improvement Loans discounted at their stated interest rate and the present value of all future scheduled payments on the Sustainable Home Improvement Loans discounted at the specified discount rate, KBRA said.

As for the reserve account, it will be equal to the greater of 1.0% of the outstanding note balance, and a floor of 0.1% of the closing note balance. Any amounts that are withdrawn to cover interest shortfalls will be replenished and deposited in the reserve account to maintain the required balance.