Sunrun Prices $629 million Senior Securitization of Residential Solar & Battery Systems
Sunrun (RUN) has successfully priced its thirteenth securitization of leases and power purchase agreements since 2015, marking its first issuance in 2025. The $629 million transaction, the second-largest in industry history, includes three classes of A-rated notes and one BB-rated class.
The deal comprises $102.0 million Class A-1 notes and $276.5 million Class A-2A notes marketed publicly, plus $250.0 million Class A-2B notes placed privately. The Class A-1 and A-2A notes were oversubscribed with coupons of 5.99% and 6.41% respectively, representing a 42 bps improvement from Sunrun's previous securitization.
The notes are backed by 39,458 systems across 20 states, Washington D.C., and Puerto Rico, with customers having an average FICO score of 738. The transaction is expected to close by February 5, 2025.
Sunrun (RUN) ha effettuato con successo la sua tredicesima cartolarizzazione di contratti di locazione e di acquisto di energia dal 2015, marcando la sua prima emissione del 2025. La transazione di $629 milioni, la seconda più grande nella storia del settore, include tre classi di note con rating A e una classe con rating BB.
Il contratto comprende $102,0 milioni di note di Classe A-1 e $276,5 milioni di note di Classe A-2A vendute pubblicamente, oltre a $250,0 milioni di note di Classe A-2B collocate privatamente. Le note di Classe A-1 e A-2A sono state sovrascritte con cedole rispettivamente del 5,99% e del 6,41%, rappresentando un miglioramento di 42 punti base rispetto alla precedente cartolarizzazione di Sunrun.
Le note sono supportate da 39.458 sistemi distribuiti in 20 stati, a Washington D.C. e a Porto Rico, con clienti che hanno un punteggio FICO medio di 738. Si prevede che la transazione venga chiusa entro il 5 febbraio 2025.
Sunrun (RUN) ha llevado a cabo con éxito su decimotercera titulización de arrendamientos y contratos de compra de energía desde 2015, marcando su primera emisión en 2025. La transacción de $629 millones, la segunda más grande en la historia de la industria, incluye tres clases de notas calificadas como A y una clase calificada como BB.
El acuerdo incluye $102,0 millones en notas de Clase A-1 y $276,5 millones en notas de Clase A-2A comercializadas públicamente, además de $250,0 millones en notas de Clase A-2B colocadas de manera privada. Las notas de Clase A-1 y A-2A fueron sobreescritas con cupones del 5,99% y del 6,41% respectivamente, representando una mejora de 42 puntos básicos en comparación con la titulización anterior de Sunrun.
Las notas están respaldadas por 39.458 sistemas en 20 estados, Washington D.C. y Puerto Rico, con clientes que tienen un puntaje FICO promedio de 738. Se espera que la transacción se cierre antes del 5 de febrero de 2025.
Sunrun (RUN)은 2015년 이후 임대 및 전력 구매 계약의 13번째 유동화에 성공적으로 가격을 책정했으며, 2025년 첫 발행을 기록했습니다. $629 백만 달러 규모의 이번 거래는 업계 역사상 두 번째로 큰 거래로서, A 등급의 세 종류의 노트와 BB 등급의 한 종류의 노트를 포함합니다.
이번 거래는 $102.0 백만 달러의 A-1 클래스 노트와 $276.5 백만 달러의 A-2A 클래스 노트가 공개적으로 판매되며, $250.0 백만 달러의 A-2B 클래스 노트는 비공식적으로 배치됩니다. A-1 및 A-2A 클래스 노트는 각각 5.99% 및 6.41%의 쿠폰으로 초과 청약되었으며, 이는 Sunrun의 이전 유동화와 비교해 42bp 개선된 수치입니다.
노트는 20개 주, 워싱턴 D.C., 푸에르토리코에 걸쳐 39,458 시스템에 의해 지원되며, 고객의 평균 FICO 점수는 738입니다. 거래는 2025년 2월 5일까지 마무리될 것으로 예상됩니다.
Sunrun (RUN) a réussi à fixer le prix de sa treizième titrisation de baux et de contrats d'achat d'électricité depuis 2015, marquant sa première émission en 2025. La transaction de 629 millions $, la deuxième plus grande de l'histoire de l'industrie, comprend trois classes de notes notées A et une classe notée BB.
L'accord comprend 102,0 millions $ de notes de Classe A-1 et 276,5 millions $ de notes de Classe A-2A commercialisées publiquement, ainsi que 250,0 millions $ de notes de Classe A-2B placées de manière privée. Les notes de Classe A-1 et A-2A ont été sursouscrites avec des coupons de 5,99 % et 6,41 % respectivement, représentant une amélioration de 42 points de base par rapport à la titrisation précédente de Sunrun.
Les notes sont soutenues par 39.458 systèmes répartis sur 20 États, Washington D.C. et Porto Rico, avec des clients ayant un score FICO moyen de 738. La transaction devrait être finalisée d'ici le 5 février 2025.
Sunrun (RUN) hat erfolgreich die dreizehnte Verbriefung von Miet- und Stromabnahmeverträgen seit 2015 durchgeführt, die die erste Emission im Jahr 2025 markiert. Die Transaktion über 629 Millionen $ ist die zweitgrößte in der Geschichte der Branche und umfasst drei Klassen von A-bewerteten Anleihen sowie eine BB-bewertete Klasse.
Der Deal umfasst 102,0 Millionen $ an A-1 Klasse-Anleihen und 276,5 Millionen $ an A-2A Klasse-Anleihen, die öffentlich vermarktet werden, sowie 250,0 Millionen $ an A-2B Klasse-Anleihen, die privat platziert werden. Die A-1 und A-2A Anleihen waren überzeichnet mit Coupons von 5,99% bzw. 6,41%, was eine Verbesserung von 42 Basispunkten im Vergleich zur vorherigen Verbriefung von Sunrun darstellt.
Die Anleihen werden durch 39.458 Systeme in 20 Bundesstaaten, Washington D.C. und Puerto Rico abgesichert, wobei die Kunden einen durchschnittlichen FICO-Score von 738 haben. Es wird erwartet, dass die Transaktion bis zum 5. Februar 2025 abgeschlossen sein wird.
- Second largest securitization in industry history at $629 million
- 42 basis points improvement in weighted average spread compared to previous securitization
- Notes were oversubscribed, indicating strong market demand
- High-quality customer base with average FICO score of 738
- Diversified portfolio across 83 utility service territories
- None.
Insights
Sunrun's latest
The deal structure is particularly sophisticated, with three A-rated tranches and a retained BB-rated class. The
The portfolio quality metrics are impressive:
- 39,458 systems across 20 states plus D.C. and Puerto Rico
- 83 utility service territories, indicating strong geographic diversification
- 738 weighted average FICO score, suggesting high-quality underlying contracts
The improved pricing terms, despite recent market volatility, position Sunrun advantageously for 2025 growth initiatives. The company's ability to secure this financing - the second-largest in industry history - while improving spreads demonstrates both market leadership and strong execution capabilities in capital markets operations.
SAN FRANCISCO, Jan. 28, 2025 (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 thirteenth securitization since 2015 and first issuance in 2025.
“Sunrun’s first securitization transaction of 2025, the second largest in the industry’s history, demonstrates our continued strong execution in the capital markets. Our ability to consistently access deep pools of competitively priced capital to fuel growth is supported by 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 three separate classes of A rated notes (the “Class A-1”, “Class A-2A”, and Class “A-2B” 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 39,458 systems distributed across 20 states, Washington D.C. and Puerto Rico and 83 utility service territories. The weighted average customer FICO score is 738. The transaction is expected to close by February 5, 2025.
ATLAS SP Partners (“ATLAS SP”) was the sole structuring agent and served as joint bookrunner along with BofA Securities, Morgan Stanley, MUFG and TD Securities. First Citizens Capital Securities and ING served as co-managers for the securitization.
"ATLAS SP was pleased to work with Sunrun again as the sole structuring agent on this securitization transaction,” said Spencer Hunsberger, Head of Energy Origination at ATLAS SP. “Through our deep partnership with Sunrun, we have demonstrated ATLAS’ unique capabilities to structure, place and commit to large transactions in an accelerated and efficient process for the capital markets. We look forward to continuing to support Sunrun as the solar industry continues to become more mainstream for securitized products.”
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.
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.
About ATLAS SP Partners
ATLAS SP is a global investment firm providing stable capital, financing, advisory and institutional products to market participants seeking innovative and bespoke structured credit and asset backed solutions. We’re proud to build upon a legacy of client excellence that includes certainty of execution, deep expertise and full-service capabilities across the asset management landscape. For more information, visit www.atlas-sp.com.
Investor & Analyst Contact:
Patrick Jobin
SVP, Deputy CFO & Investor Relations Officer
investors@sunrun.com
Media Contact:
Wyatt Semanek
Director, Corporate Communications
press@sunrun.com
ATLAS Contact:
(212) 355-4449
atlas-sp@joelefrank.com
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