See how we helped a solar originator scale its ABS pipeline.
For the fifth consecutive year, the residential solar market set a new growth record, expanding by 30% in 2021. The boom in solar energy demand has also given rise to a rapidly growing solar ABS market. Here’s how T-REX helped a leading residential solar originator advance its ABS pipeline, adding value at a critical time in the firm’s path toward an IPO.
Challenge:
A leading residential solar originator was experiencing multiple roadblocks as it sought to accelerate and streamline its deal pipeline in preparation for an IPO. The firm lacked sufficient internal capital markets resources and bandwidth to scale due to the complexities of structuring solar ABS deals. The process was manual and time-consuming, requiring constant realignment with investors unfamiliar with the non-loan power production-based asset class.
Solution:
Recognizing they needed capital markets tools specifically for solar deals, the firm turned to T-REX’s Insights & Analytics Platform and Data Management Services to streamline its deal pipeline and project cash flows with precision. The Insights & Analytics Platform’s built-in PPA and lease modeling capabilities allowed the firm to forecast energy production, revenue generation, and merchant pricing, using a template built specifically for residential solar. The firm also leveraged T-REX’s waterfall calculator to show the impact of the residuals on its balance sheet. T-REX’s automated capital markets reports provided the most concise and accurate information to both investors and the firm’s CFO, saving the lean team weeks of time and manual labor sifting through disparate data.
Further streamlining deal flow, T-REX’s collaboration features facilitated communication between the buy and sell sides. Gone were the days of emailing back and forth—investors could now log onto the T-REX Platform and surveil the deals in real time.
Outcome:
Since becoming a client of T-REX in 2018, the residential solar firm has:
- Structured a total of $1.4 billion in new issuances, saving an average of 60 bps per deal
- Accelerated deal issuance by 25% with the help of T-REX’s centralized capital markets platform that enabled the firm to model more deals with improved accuracy
- Increased investor confidence and showed value on the balance sheet to future shareholders by simplifying an esoteric asset class, providing transparency, efficiency, and collaboration between parties in a deal, all on T-REX’s centralized platform designed for complex finance