Business
Sunrun Closes $835 Million Non-Recourse Financings to Support Continued Growth
Financings result in advance rate exceeding 85% of contracted Subscriber Value, above the high-end of prior guidance range, and demonstrates robust access to
About this update from Sunrun Inc.
[{"type":"text","content":"Financings result in advance rate exceeding 85% of contracted Subscriber Value, above the high-end of prior guidance range, and demonstrates robust access to capital across multiple markets\nSAN FRANCISCO, Jan. 05, 2023 (GLOBE NEWSWIRE) -- Sunrun (Nasdaq: RUN), the nation’s leading home solar, battery storage and energy services company, closed a $600 million non-recourse syndicated bank facility supporting a 335 MW portfolio of leases and power purchase agreements (the “Senior Credit Facilities”). The Senior Credit Facilities consist of a $575 million amortizing loan (the “Senior Loan”) and a $25 million debt service reserve letter of credit (“DSR LC”). Sunrun also closed an additional non-recourse subordinated financing, which is secured by Sunrun’s retained equity interest in the underlying collateral supporting the Senior Credit Facilities. All facilities closed on December 23, 2022. “I am pleased with the resiliency in both our senior and subordinated non-recourse cost of capital. The Senior Loan priced at an initial credit spread 100 basis points below recent Solar Loan asset-backed securitization transactions observed in the sector, while delivering a cumulative advance rate above our prior guidance range of 75%-85%,” said Danny Abajian, Sunrun’s Chief Financial Officer. “These financings highlight that Sunrun’s 15-year track record of strong asset performance and deep relationships across multiple capital markets provide stability and predictability, even with escalating interest rates.” The $575 million Senior Loan was priced at a credit spread of approximately 212.5 basis points to the Daily Simple Secured Overnight Financing Rate (“SOFR”), with a 12.5 basis points margin step-up on the fourth anniversary of the closing date. SOFR is the successor to the London Interbank Offered Rate (LIBOR). Concurrent with closing, the subsidiary borrower entered into long-term amortizing fixed-for-floating interest rate swaps, providing a weighted-average fixed base rate of 3.49%, and a total initial swapped Senior Loan cost of debt of 5.62%. The 212.5 basis points credit spread is approximately 100 basis points lower than the weighted average AA- and A- credit spreads for two fourth quarter solar loan asset-backed securitizations issued by others in the sector. The $25 million DSR LC is undrawn and was placed in lieu of a cash-fund...