Sunrun Prices $230 million Senior Securitization of Residential Solar & Battery Systems
10 Abril 2024 - 7:00AM
Sunrun (Nasdaq: RUN), the nation’s leading provider of clean energy
as a subscription service, today announced it has priced a
securitization of leases and power purchase agreements. The
securitized leases and power purchase agreements have been in
service for an average of 6.75 years, and thus the vast majority of
the portfolio is after the ‘flip point’ in tax equity structures.
“Sunrun’s industry-leading performance as an originator and
servicer of residential solar assets continues to provide deep
access to attractively priced capital,” said Danny Abajian,
Sunrun’s Chief Financial Officer. “The latest ABS
transaction was priced at a credit spread of 195 basis points, a
37.5 basis point improvement from Sunrun’s most recent privately
placed senior securitization in February and 45 basis points lower
than Sunrun’s securitization in September 2023. The latest
execution represents the lowest spread achieved for similarly rated
transactions across the sector since 2021, a testament to Sunrun’s
strong track record.”
The securitization was issued with a single class of notes that
are A rated by Kroll with a principal amount of $230 million, a
weighted average life of 7 years and final maturity of February 1,
2055. As the portfolio has a remaining contractual life of 13.25
years and the vast majority of the portfolio has already reached
the tax equity fund ‘flip point’, the structure was issued without
an Anticipated Repayment Date (ARD) and instead fully amortizes
over the contractual life at a fixed interest rate. The initial
balance of the notes represents an approximate 85% advance rate on
Securitization Share of ADSAB (present value using a 7.5% discount
rate). The advance rate is 7 percentage points higher than the
senior tranche in Sunrun’s prior securitization of more recently
originated assets. The notes were priced at a 6.27% coupon and
represented a 6.328% yield. The coupon rate reflects a spread of
195 basis points over the benchmark swap rate at the time.
The notes are backed by a diversified portfolio of 27,094 solar
rooftop systems distributed across 19 states and Washington D.C.
and 65 utility service territories. The weighted average customer
FICO score is 739. The transaction is expected to close by April
17, 2024. The portfolio is jointly owned by National Grid (NG) and
Sunrun, with NG receiving the majority of cash flows through
2042.
Bank of America was the sole structuring agent and served as
joint bookrunner along with Truist and KeyBanc.
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.
Investor & Analyst Contact:Patrick
JobinSenior Vice President, Finance &
IRinvestors@sunrun.com
Media Contact:Wyatt SemanekDirector, Corporate
Communicationspress@sunrun.com
About Sunrun
Sunrun Inc. (Nasdaq: RUN) revolutionized the solar industry in
2007 by removing financial barriers and democratizing access to
locally-generated, renewable energy. Today, Sunrun is the nation’s
leading provider of clean energy as a subscription service,
offering residential solar and storage with no upfront costs.
Sunrun’s innovative products and solutions can connect homes to the
cleanest energy on earth, providing them with energy security,
predictability, and peace of mind. Sunrun also manages energy
services that benefit communities, utilities, and the electric grid
while enhancing customer value. Discover more at
www.sunrun.com.
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