Sunrun Prices $365 million Senior Securitization of Residential Solar & Battery Systems

Core Viewpoint - Sunrun has successfully priced its twelfth securitization of leases and power purchase agreements, demonstrating strong execution in capital markets and highlighting its industry-leading cost of capital [1][2]. Securitization Details - The transaction includes two classes of publicly placed A+ rated notes (Class A-1 and Class A-2) and a single class of BB rated notes (Class B) [3]. - Class A-1 notes amount to $75.0 million with a coupon of 5.49$290.4 million with a coupon of 5.88% [3]. - The Class A-1 notes priced at a spread of 210 basis points and a yield of 5.538%, whereas Class A-2 notes priced at a spread of 240 basis points and a yield of 5.933% [3]. - The initial balance of Class A notes represents a 73.8% advance rate on the Securitization Share of ADSAB, with expected weighted average lives of 4.83 years for Class A-1 and 6.99 years for Class A-2 [3]. Portfolio and Customer Metrics - The notes are backed by a diversified portfolio of 21,281 systems across 19 states and Puerto Rico, covering 73 utility service territories [5]. - The weighted average customer FICO score is 741, indicating a strong credit profile among customers [5]. Future Financing Plans - Sunrun anticipates raising additional subordinated subsidiary-level non-recourse financing, which is expected to enhance the cumulative advance rate [4]. Closing Timeline - The transaction is expected to close by September 26, 2024 [5]. Company Overview - Sunrun, established in 2007, is the leading provider of clean energy as a subscription service, focusing on residential solar and storage solutions without upfront costs [7].