Business
Sunrun Upsizes Non-Recourse Warehouse Lending Facility to $1.8 Billion at Improved Terms
Increased warehouse capacity supports scale of combined company and continued growth trajectory Amendment to warehouse facility lowers financing costs by 50
About this update from Sunrun Inc.
[{"type":"text","content":"Increased warehouse capacity supports scale of combined company and continued growth trajectory Amendment to warehouse facility lowers financing costs by 50 basis points SAN FRANCISCO, Oct. 11, 2021 (GLOBE NEWSWIRE) -- Sunrun (Nasdaq: RUN), the nation’s leading home solar, battery storage and energy services company, today announced it has increased the company’s non-recourse warehouse lending facility to $1.8 billion in commitments, an increase of $1 billion, while also reducing the interest cost by 50 bps to a spread of 200 bps over LIBOR. “We are excited to expand our warehouse facility to support continued growth while also lowering the cost of financing,” said Tom vonReichbauer, Sunrun’s Chief Financial Officer. “Our capital raising strength and strong execution, especially at our large scale, allows us to optimize our capital structure and deliver strong financial returns investing in home solar and battery systems while enabling more homeowners to benefit from choosing clean, affordable, resilient energy.” The non-recourse lending facility, which serves as a warehouse facility to temporarily finance solar assets prior to arranging long term financings, such as asset backed securities, was expanded from current commitments of $800 million to $1.8 billion. All six financial institutions in the facility expanded their commitments while two new institutions joined the syndicate. The non-recourse facility has an availability period into April 2024 and maturity in April 2025. In September, Sunrun retired a warehouse facility which was arranged by Vivint Solar in August 2019 for $570 million while also retiring a $412 million warehouse facility following the most recent asset backed security closing. The average applicable financing cost for the retired facilities was approximately 100 bps higher than the upsized facility announced today. Additional details on the amendment can be found in the company’s filings with the SEC on Form 8-K. Forward Looking Statements This communication contains forward-looking statements related to Sunrun (the “Company”) within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements related to: the Company’s bus...