Sunrun Prices Fourth Securitization of Residential Solar and Battery Systems
October 17 2019 - 4:05PM
Sunrun (Nasdaq: RUN), the nation’s leading home solar, battery
storage and energy services company, today announced it has priced
its fourth securitization of leases and power purchase agreements,
known as Sunrun’s solar-as-a-service offering.
“We are pleased that the market increasingly recognizes both the
high quality of residential solar assets as well as our
industry-leading performance,” said Ed Fenster, Sunrun co-Founder
and Executive Chairman. “These record capital costs and
advance rates will enable more American households to choose
affordable solar energy and battery service.”
The two-tranche securitization includes A rated notes at an
80.0% advance rate and subordinated BB rated notes at a cumulative
95.0% advance rate. The $312.4 million in A rated notes
priced at a yield of 3.63%, representing a spread to the benchmark
swap rate of 205 bps. The A rated notes carry a weighted average
life of 7.3 years through the Anticipated Repayment Date of
November 1, 2027, and have a final maturity of February 1, 2055.
Consistent with its 2018 securitization, Sunrun plans to retain the
subordinated notes. Sunrun anticipates arranging additional
subordinated debt outside of the ABS market, which is typically
most efficient for large, investment-grade issuances. Advance rates
are calculated relative to the securitization share of the
aggregate discounted solar asset balance (i.e., cash flows
available for debt service).
The notes are backed by a diverse portfolio of 28,237 solar
rooftop systems distributed across 19 states, plus Washington D.C.
and Puerto Rico, and 61 utility service territories. The weighted
average customer FICO score is 738. The transaction is expected to
close by October 28, 2019.
Credit Suisse was the sole structuring agent. Credit
Suisse, Deutsche Bank Securities and Morgan Stanley served as
bookrunners for the securitization with KeyBanc Capital Markets and
RBC Capital Markets serving as co-managers.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of
these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction.
About SunrunSunrun Inc. (Nasdaq:RUN) is the
nation’s leading residential solar, storage and energy services
company. With a mission to create a planet run by the sun,
Sunrun has led the industry since 2007 with its solar-as-a-service
model, which provides clean energy to households with little to no
upfront cost and at a saving compared to traditional electricity.
The company designs, installs, finances, insures, monitors and
maintains the systems, while families receive predictable pricing
for 20 years or more. The company also offers a home solar battery
service, Sunrun Brightbox, that manages household solar energy,
storage and utility power. For more information, please visit:
www.sunrun.com.
Investor & Analyst Contact
Patrick JobinVice President, Finance & Investor
Relationsinvestors@sunrun.com(415) 373-5206
Press & Media Contact
Shane LevyMedia Managerpress@sunrun.com (201) 697-9507
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