Sunrun Secures $510 Million in Latest Securitization Deal
Sunrun Secures Significant Funding in Recent Deal
Sunrun Inc. (NASDAQ: RUN), the leading provider of residential solar energy solutions, has recently announced the pricing of its latest securitization of leases and power purchase agreements, totaling $510 million. This marks a significant milestone for the company as it has surpassed $1.5 billion in raised non-recourse debt capital just this quarter. This fifth issuance in 2025 shows Sunrun's continued commitment to innovative financing solutions and its growth trajectory in the renewable energy sector.
Expanding Financial Strategies for Growth
The Chief Financial Officer of Sunrun, Danny Abajian, stated, "Sunrun continues to show deep capital markets access, leveraging its strong relationships with both public and private investor groups." This comment underscores the company’s established presence in financial markets and its ability to attract substantial investments. The $510 million securitization will enable Sunrun to invest further in solar technology and continue to expand its footprint in the growing renewable energy market.
Details of the Securitization Structure
The recent securitization consists of two tranches: $260 million in Class A-1 Notes and $250 million in Class A-2 Notes, alongside a single class of retained BB rated Class B Notes. The Class A Notes were priced with a competitive coupon of 6.15%, reflecting Sunrun's ability to secure favorable financing conditions. Notably, the Class A-1 Notes were publicly marketed while Class A-2 Notes were privately placed, providing a mix of investment opportunities for diverse financial backers.
Noteworthy Financing Terms
With a spread of 240 basis points, the Class A Notes are structured with a 69% advance rate. This transaction is indicative of strong investor confidence and market interest in Sunrun's growth prospects. The expected weighted average life of these notes is approximately 6.93 years, promising a reliable source of financing for the company's ongoing projects and commitments.
Adapting to Market Changes
The securitization process is expected to close soon, with ongoing commitment from global asset managers to provide additional financing options. This flexibility in financing is crucial as Sunrun positions itself to capture the expanding market for residential solar solutions. Prior to this deal, in August, Sunrun had successfully executed another securitization, further demonstrating its robust financial strategy and broad investor appeal.
Diverse Portfolio Enhancing Investor Appeal
Backing the securitization is an extensive portfolio consisting of nearly 30,000 solar systems operating across numerous states, including territories like Washington D.C. and Puerto Rico. The varied distribution across 76 utility service areas enhances the security of these investments, evidenced by a high weighted average customer FICO score of 743, showcasing the creditworthiness of the customer base. This diversity strengthens Sunrun's position, making it an attractive option for investors associated with renewable energy financing.
About Sunrun
As America’s largest provider of residential battery storage and solar energy systems, Sunrun (NASDAQ: RUN) has positioned itself at the forefront of the energy transformation. The company operates on a no-upfront-cost subscription model, enabling households nationwide to enjoy greater energy autonomy while contributing to a more sustainable environment. By providing reliable, dispatchable power, Sunrun plays a vital role in enhancing grid stability and reducing overall energy expenses for consumers.
Frequently Asked Questions
What is the amount Sunrun raised in the recent securitization?
Sunrun raised $510 million in its recent securitization.
How much non-recourse debt capital has Sunrun raised in Q3?
Sunrun has raised over $1.5 billion in non-recourse debt capital in the third quarter.
What types of notes are included in the securitization?
The securitization includes Class A-1 Notes, Class A-2 Notes, and retained Class B Notes.
What is the expected weighted average life of the Class A Notes?
The expected weighted average life of the Class A Notes is approximately 6.93 years.
What is Sunrun’s business model for solar solutions?
Sunrun offers solar energy systems through a no-upfront-cost subscription model, allowing customers to gain energy independence.
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