Sunnova Prices Securitization of Residential Solar and Battery Systems
Sunnova Energy International (NYSE: NOVA) announced the pricing of a $319 million securitization of its solar and storage assets. This marks a milestone as it is the first refinancing of a third-party owned solar asset securitization, achieving the tightest spread over the benchmark interest rate to date. The securitization features A- (sf) rated 2.58% notes, with an advance rate of 76.4% and a weighted average life of 7.46 years. Proceeds will be utilized for repaying existing financing and general corporate purposes, with the transaction expected to close by June 17, 2021.
- Achieved a tight spread of 140 bps over the benchmark swap rate for securitization.
- First-ever refinancing of a pre-existing solar asset securitization.
- Proceeds will be used to repay existing debt, optimizing financial leverage.
- None.
Sunnova Energy International Inc. (“Sunnova”) (NYSE: NOVA), today announced the pricing of its latest securitization of leases and power purchases agreements.
“We are pleased to report the pricing of a ground-breaking securitization of third party owned (“TPO”) solar and storage assets,” said Robert Lane, Chief Financial Officer of Sunnova. “We were able to achieve our tightest spread over the interest rate benchmark to date for a TPO solar and storage asset securitization, reflecting the high-quality assets in the pool. Further, this is the solar sector’s first ever securitization re-financing collateral from a pre-existing securitization. Finally, we have structured this transaction to align the debt service of the assets more closely with their cash flows, which in turn allows us to bring more cash to the corporate level and bring us closer to our goal of issuing a bullet-maturity green bond.”
The single-tranche securitization consists of
Advance rates are calculated relative to the securitization share of the aggregate discounted solar asset balance.
The notes are backed by a diverse portfolio of over 20,900 solar rooftop systems distributed across 18 states, Guam, Puerto Rico, and Northern Mariana Islands. The weighted average customer FICO score of the related customers at the time of origination is approximately 740. Sunnova intends to use the proceeds from the sale of the notes for the repayment of one or more currently existing financing arrangements of Sunnova’s subsidiaries, including the voluntary prepayment of all outstanding
Credit Suisse was the sole structuring agent and bookrunner for the securitization.
The notes have not been and will not be registered under the Securities Act of 1933, as amended, or applicable state securities laws, and, unless so registered, such securities may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, nor shall it constitute an offer, solicitation of an offer or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offer of the notes will be made only by means of a private offering circular.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Sunnova's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expect," "plan," "anticipate," "going to," "could," "intend," "target," "project," "contemplates," "believe," "estimate," "predict," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Sunnova's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding the expectations in connection with the offering, including the closing thereof, the use of proceeds from the offering and use of excess cashflows from the collateral, as well as debt service, cash flows, and future financing plans. Sunnova's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks regarding our ability to forecast our business due to our limited operating history, the effects of the coronavirus pandemic on our business and operations, results of operations and financial position, our competition, fluctuations in the solar and home-building markets, availability of capital, our ability to attract and retain dealers and customers and our dealer and strategic partner relationships. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in Sunnova's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2020 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021. The forward-looking statements in this release are based on information available to Sunnova as of the date hereof, and Sunnova disclaims any obligation to update any forward-looking statements, except as required by law.
ABOUT SUNNOVA
Sunnova Energy International Inc. (NYSE: NOVA) is a leading residential solar and energy storage service provider with customers across the U.S. and its territories. Sunnova’s goal is to be the source of clean, affordable and reliable energy with a simple mission: to power energy independence so that homeowners have the freedom to live life uninterrupted®.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210614005210/en/
FAQ
What is the significance of Sunnova's recent securitization announcement?
What are the financial details of Sunnova's securitization?
How will Sunnova utilize the proceeds from the securitization?
When is the expected closing date for Sunnova's securitization?