Sunrun Prices Securitization of Residential Solar & Battery Systems
22 Setembro 2021 - 8:29PM
Sunrun (Nasdaq: RUN), the nation’s leading home solar, battery
storage and energy services company, today announced it has priced
a securitization of leases and power purchase agreements, known as
Sunrun’s solar-as-a-service offering.
“The market increasingly recognizes the high quality of
residential solar assets and our industry-leading performance,”
said Ed Fenster, Sunrun Co-Founder and Co-Executive Chair.
“Fourteen years of strong performance, including through the
financial crisis and Covid, has allowed us to continue to lower
capital costs and increase advance rates. In this transaction, we
achieved a weighted average capital cost below any prior
transaction.”
While the transaction was structured with both A- (“Class A”)
and BB- (“Class B”) rated notes, only the Class A notes were sold
to investors. The Class A notes have an initial balance of $447.1
million and were priced at a yield of 2.28%, representing a spread
to the benchmark swap rate of 120 bps. This represents an
improvement in the spread of 15 bps from the securitization issued
by Sunrun in March 2021, which previously represented the lowest
spread achieved by Sunrun or Vivint Solar, inception-to-date. The
Class A notes represent an advance rate of approximately 75% of the
securitization share of the aggregate discounted solar asset
balance (i.e., contracted cash flows available for debt service)
using a 5% discount rate. With a yield of 2.28%, the cost of debt
for the Class A notes is approximately 160 bps below the average
cost of the company’s overall securitized notes. The Class A notes
have an expected weighted average life of 6.3 years, an Anticipated
Repayment Date of January 30, 2029, and a final maturity date of
January 30, 2057.
As planned at the launch of the securitization process, an
affiliate of Sunrun will retain the Class B notes. Sunrun is
contemplating the entry into an additional subordinated financing
(secured, in part, by the distributions from the Class B notes)
after the securitization transaction closes, which would further
increase the cumulative advance rate obtained by Sunrun with
respect to the assets within the subsidiary funds.
The notes are backed by a diverse portfolio of 34,068 solar
rooftop systems distributed across 23 states and territories and 74
utility service territories. The weighted average customer FICO
score is 747. The transaction is expected to close on September 29,
2021.
This is the first securitization transaction that Sunrun has
entered into where the advance rate is calculated using a 5%
discount rate. Using a 6% discount rate, consistent with prior
transactions, the Class A advance rate is over 82%.
Deutsche Bank Securities was the sole structuring agent and
served as joint bookrunner along with Credit Suisse and BofA
Securities. Truist Securities, KeyBanc Capital Markets, RBC Capital
Markets and Citigroup served as co-managers for the
securitization.
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
Sunrun (NASDAQ:RUN)
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