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PACE Funding Group Completes Inaugural 144a Securitization and achieves "Green Bond" Designation

published: 2020-06-30 4:00

-- PACE Funding Group, LLC, a California-based specialty finance company, announced today that it completed a $ 107 million securitization of residential Property Assessed Clean Energy (PACE) assets.

Image by Gerd Altmann from Pixabay

The assets were originally sold to a subsidiary of Rosemawr Management and the company partnered with Rosemawr to complete the transaction.  The "Green Bond" transaction represents the fourth asset-backed securitization completed by the Company and its first Rule 144a transaction, following its first three transactions in 2018 and 2019 for a total of $165 million.  SunTrust Robinson Humphrey, Inc. acted as Structuring Agent and Sole Bookrunner on the transaction, and DBRS Morningstar provided ratings across the issued classes.   

"We continue to pride ourselves on our commitment to consumer protection and policing the contractor channel, and believe that has enabled us to continue to grow our company during these unprecedented times.  We were very pleased with the reception we received from investors during this process and are thrilled to close our inaugural 144a deal," said James Vergara, Chief Investment Officer at PACE Funding Group. 

An audit of the assets revealed that almost 80% were for property improvements that supported energy efficiency and the remainder were in renewable energy, with smaller sectors in California for water conservation, and in Florida for hurricane resiliency measures. More than 1 million kWh of energy will be saved annually by the energy efficiency improvements, with over 5.5 million kWh of renewable energy to be generated annually. The measures involved contributed to annual savings of 5,666 tons of greenhouse gas emissions and 7.3 million gallons of water. Property owners in Florida will benefit from storm mitigation projects that protect their homes and contribute to insurance premium savings. Kestrel Verifiers provided a Second Party Opinion to support the green bonds designation for the senior notes. Kestrel found that the notes conform with the Green Bond Principles published by the International Capital Market Association.

About PACE Funding Group:

PACE Funding Group, LLC is a leading renewable energy and energy efficiency financing provider with a focus on consumer protection and conservatism, and the only company in the space backed by a chartered bank. For more information, please visit https://www.pacefunding.com


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