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Sunrun Prices Record-Setting $715 million Senior Securitization of Residential Solar & Battery Systems
SAN FRANCISCO, Sept. 14, 2023 (GLOBE NEWSWIRE) -- Sunrun (Nasdaq: RUN), the nation’s leading provider of residential solar, storage and energy services, today
About this update from Sunrun Inc.
[{"type":"text","content":"SAN FRANCISCO, Sept. 14, 2023 (GLOBE NEWSWIRE) -- Sunrun (Nasdaq: RUN), the nation’s leading provider of residential solar, storage and energy services, today announced it has priced a securitization of leases and power purchase agreements, known as Sunrun’s solar-as-a-service offering. “The capital markets continue to recognize the high quality of Sunrun’s residential solar assets, and the company’s industry-leading performance as an originator and servicer. This latest securitization sets new records, representing the largest securitization in Sunrun’s history and also the largest across the entire residential solar industry. Combined with a senior portfolio term-out financing closed in July, the Class A Notes represent over $1 billion of senior term debt financing raised this quarter, demonstrating deep access to attractively-priced capital across multiple private and public markets,” said Danny Abajian, Sunrun’s Chief Financial Officer. The transaction was structured with two pari passu tranches of A- rated notes (the “Class A-1” and “Class A-2”, respectively and together the “Class A”) and a single class of BB+ (“Class B”) rated notes. The $440mm Class A-1 notes were marketed in a public asset backed securitization whereas the $275mm Class A-2 notes were privately placed. The Class A-1 and A-2 notes were both priced with a coupon of 6.60%. While $340mm of publicly placed Class A-1 notes were initially offered, strong investor demand resulted in a spread of 240bps and a yield of 6.78%, while also enabling the Class A-1 notes to be upsized by $100mm to $440mm. The spread of 240bps represents an improvement of 25bps from Sunrun’s 2023-1 asset backed securitization in May 2023. The Class A notes advance rate is approximately 67.4% of the securitization share of the aggregate discounted solar asset balance (i.e., contracted cash flows available for debt service) using a 6% discount rate. The Class A notes have an expected weighted average life of 6.53 years, an Anticipated Repayment Date of July 30, 2030, and a final maturity date of January 30, 2059. The notes are backed by a diversified portfolio of 57,731 solar rooftop systems distributed across 21 states, and Washington D.C. and Puerto Rico and 85 utility service territories. The weighted average customer FICO score is 741. The transaction is expected to close by September 2...