Sunrun Prices $365 million Senior Securitization of Residential Solar & Battery Systems
Sunrun (Nasdaq: RUN), a leading clean energy subscription service provider, has priced its twelfth securitization of leases and power purchase agreements. The transaction involves $365.4 million in notes, structured with two classes of A+ rated notes and one class of BB rated notes. The Class A-1 ($75.0 million) and Class A-2 ($290.4 million) notes were oversubscribed, carrying coupons of 5.49% and 5.88% respectively. The notes are backed by a diverse portfolio of 21,281 systems across 19 states and Puerto Rico. Sunrun's CFO, Danny Abajian, highlighted the company's strong execution in capital markets and industry-leading cost of capital. The transaction is expected to close by September 26, 2024.
Sunrun (Nasdaq: RUN), un fornitore leader di servizi in abbonamento per l'energia pulita, ha fissato il prezzo della sua dodicesima cartolarizzazione di contratti di locazione e contratti di acquisto di energia. La transazione coinvolge 365,4 milioni di dollari in note, strutturate con due classi di note classificate A+ e una classe di note classificate BB. Le note Class A-1 (75,0 milioni di dollari) e Class A-2 (290,4 milioni di dollari) sono state sovra-sottoscritte, con cedole rispettive del 5,49% e 5,88%. Le note sono garantite da un portafoglio diversificato di 21.281 impianti sparsi in 19 stati e a Porto Rico. Il CFO di Sunrun, Danny Abajian, ha messo in evidenza l'eccellente gestione dell'azienda nei mercati dei capitali e il suo costo del capitale leader nel settore. La transazione dovrebbe concludersi entro il 26 settembre 2024.
Sunrun (Nasdaq: RUN), un proveedor líder de servicios de suscripción de energía limpia, ha fijado el precio de su duodécima titularización de arrendamientos y acuerdos de compra de energía. La transacción involucra 365,4 millones de dólares en notas, estructuradas con dos clases de notas calificadas A+ y una clase de notas calificadas BB. Las notas Clase A-1 (75,0 millones de dólares) y Clase A-2 (290,4 millones de dólares) fueron sobre suscritas, con cupones de 5,49% y 5,88% respectivamente. Las notas están respaldadas por un portafolio diverso de 21.281 sistemas en 19 estados y Puerto Rico. El CFO de Sunrun, Danny Abajian, destacó la sólida ejecución de la empresa en los mercados de capital y su costo de capital líder en la industria. Se espera que la transacción se cierre para el 26 de septiembre de 2024.
Sunrun (Nasdaq: RUN), 주요 청정 에너지 구독 서비스 제공업체는 임대 및 전력 구매 계약의 열두 번째 유가증권 거래를 가격 책정했습니다. 이 거래는 3억 6540만 달러의 노트로 구성되며, A+ 등급의 두 가지 클래스와 BB 등급의 한 가지 클래스로 구조화되었습니다. A-1 클래스 노트(7500만 달러)와 A-2 클래스 노트(2억 9040만 달러)는 각각 5.49%와 5.88%의 쿠폰을 가지고 과잉 청약되었습니다. 노트는 19개 주와 푸에르토리코에 걸쳐 있는 21,281개 시스템의 다양한 포트폴리오에 의해 지원됩니다. Sunrun의 CFO인 Danny Abajian은 자본 시장에서 회사의 강력한 실행력과 업계 최고의 자본 비용을 강조했습니다. 이 거래는 2024년 9월 26일에 마감될 것으로 예상됩니다.
Sunrun (Nasdaq: RUN), un fournisseur leader de services d'abonnement à l'énergie propre, a fixé le prix de sa douzième titrisation de baux et d'accords d'achat d'énergie. La transaction implique 365,4 millions de dollars en obligations, structurées avec deux classes d'obligations notées A+ et une classe d'obligations notées BB. Les obligations de classe A-1 (75,0 millions de dollars) et A-2 (290,4 millions de dollars) ont été sursouscrites, affichant des coupons de 5,49% et 5,88% respectivement. Les obligations sont soutenues par un portefeuille diversifié de 21.281 systèmes dans 19 États et à Porto Rico. Le CFO de Sunrun, Danny Abajian, a souligné l'excellente exécution de l'entreprise sur les marchés de capitaux et son coût du capital leader dans l'industrie. La transaction devrait se clôturer d'ici le 26 septembre 2024.
Sunrun (Nasdaq: RUN), ein führender Anbieter von Abonnementdiensten für saubere Energie, hat die Preisgestaltung seiner zwölften Verbriefung von Leasingverträgen und Stromabnahmeverträgen festgelegt. Die Transaktion umfasst 365,4 Millionen Dollar in Anleihen, die mit zwei Klassen von A+-bewerteten Anleihen und einer Klasse von BB-bewerteten Anleihen strukturiert sind. Die Klassen A-1 (75,0 Millionen Dollar) und A-2 (290,4 Millionen Dollar) wurden überzeichnet und tragen Kupons von 5,49% bzw. 5,88%. Die Anleihen werden durch ein diversifiziertes Portfolio von 21.281 Systemen in 19 Bundesstaaten und Puerto Rico abgesichert. Der CFO von Sunrun, Danny Abajian, hob die starke Umsetzung des Unternehmens in den Kapitalmärkten und die branchenführenden Kapitalkosten hervor. Die Transaktion soll bis zum 26. September 2024 abgeschlossen werden.
- Successful pricing of $365.4 million securitization, demonstrating strong capital market execution
- Oversubscription of Class A-1 and A-2 notes, indicating high investor demand
- Competitive coupon rates of 5.49% and 5.88% for Class A-1 and A-2 notes respectively
- Diversified portfolio backing the notes, spanning 19 states and 73 utility service territories
- High weighted average customer FICO score of 741, suggesting quality assets
- None.
Insights
Sunrun's latest $365 million securitization of residential solar and battery systems demonstrates the company's strong position in capital markets. The A+ rating for Class A notes and oversubscription indicate high investor confidence. With coupons of 5.49% and 5.88% for Class A-1 and A-2 notes respectively, Sunrun has secured competitive financing rates in the current market environment.
The 73.8% advance rate on the Securitization Share of ADSAB is favorable, potentially improving Sunrun's liquidity. The weighted average customer FICO score of 741 suggests a high-quality underlying asset base, which could contribute to lower default risks. This transaction, being Sunrun's 12th securitization since 2015, showcases the company's consistent ability to tap into capital markets, a positive sign for its financial health and growth prospects.
This securitization underscores Sunrun's leading position in the residential solar market. The portfolio of 21,281 systems across 19 states and Puerto Rico demonstrates significant market penetration and diversification, reducing geographic risk. The company's ability to consistently securitize its assets indicates a scalable business model and steady cash flow generation from its subscription-based services.
The inclusion of battery systems in this securitization is noteworthy, reflecting the growing trend of integrated solar-plus-storage solutions in the residential market. This could potentially lead to higher customer value and improved margins for Sunrun. The company's success in this securitization amid rising interest rates suggests strong underlying fundamentals and investor confidence in the long-term prospects of residential solar and battery systems.
SAN FRANCISCO, Sept. 17, 2024 (GLOBE NEWSWIRE) -- 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 securitization is Sunrun’s twelfth securitization since 2015 and third issuance in 2024.
“Sunrun continues to demonstrate strong execution in the capital markets; our latest securitization again highlights our industry-leading cost of capital. We believe our strong execution is testament to Sunrun’s deep capital markets relationships, the quality of our assets and our proven track record as an originator and servicer,” said Danny Abajian, Sunrun’s Chief Financial Officer.
The transaction was structured with two separate classes of publicly placed A+ rated notes (the “Class A-1” and “Class A-2”, respectively and together the “Class A”) and a single class of BB rated notes (the “Class B”), which were retained. The
Similar to prior transactions, Sunrun anticipates raising additional subordinated subsidiary-level non-recourse financing (secured, in part, by the distributions from the retained Class B notes), which is expected to increase the cumulative advance rate obtained by Sunrun.
The notes are backed by a diversified portfolio of 21,281 systems distributed across 19 states and Puerto Rico and 73 utility service territories. The weighted average customer FICO score is 741. The transaction is expected to close by September 26, 2024.
RBC Capital Markets was the sole structuring agent and served as joint bookrunner along with BofA Securities, Citigroup, Deutsche Bank Securities and J.P. Morgan. KeyBanc Capital Markets served as co-manager 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 Jobin
SVP, Deputy CFO & Investor Relations Officer
investors@sunrun.com
Media Contact:
Wyatt Semanek
Director, Corporate Communications
press@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.
FAQ
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