KBRA Update on SunStrong 2018-1 in Wake of SunPower Chapter 11 Filing
09 Agosto 2024 - 10:35AM
Business Wire
The ratings on the Class A Notes of SunStrong 2018-1 Issuer, LLC
(“SunStrong 2018-1” or the “Issuer”), a residential solar lease
transaction, have been on Watch Developing due to the financial
health of SunPower Corporation (“SunPower”) since late last year.
Earlier this week, on August 5, 2024, SunPower filed a voluntary
petition for relief under Chapter 11 of U.S. Bankruptcy Code.
While the filing could cause disruption to the transaction,
Launch Servicing, LLC., was recently appointed as sub-servicer on
August 1, 2024 and is responsible for all billing and collections
activities on SunStrong 2018-1. This may help mitigate performance
issues relating to collections. GreatAmerica Portfolio Services
Group LLC serves as transition manager if there is a manager
termination event. The termination events per the transaction
documents include, among other events, the bankruptcy, insolvency,
receivership or reorganization of the manager or the sub-manager
continuing for 60 days.
Currently, SunStrong Capital Holdings, LLC (“SunStrong”), which
is jointly owned 51% directly by SunPower and 49% indirectly by
Hannon Armstrong, serves as manager. The manager is responsible for
providing all administrative, and other management services for the
Issuer and in respect of the managing members. SunStrong, although
obligated to ensure all services are performed, has delegated
substantially all of its responsibilities to SunPower Capital
Services, LLC, an indirect wholly owned subsidiary of SunPower, as
sub-manager. KBRA will continue to monitor the developments and
implications of SunPower’s bankruptcy, as well as possible manager
transitions and performance of the SunStrong 2018-1
transaction.
To access ratings click here.
Related Publications
- KBRA Maintains Watch Developing Placement on SunStrong 2018-1
Issuer, LLC
- KBRA Places Rating on SunStrong 2018-1 Issuer, LLC on Watch
Developing
About KBRA
KBRA is a full-service credit rating agency registered in the
U.S., the EU, and the UK, and is designated to provide structured
finance ratings in Canada. KBRA’s ratings can be used by investors
for regulatory capital purposes in multiple jurisdictions.
Doc ID: 1005465
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Kenneth Martens, Senior Director +1 646-731-3373
kenneth.martens@kbra.com
Eric Neglia, Head of Commercial and Consumer ABS +1 646-731-2456
eric.neglia@kbra.com
Business Development Contact
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com