Sunrun Prices Record Setting $886.3 million Senior Securitization of Residential Solar and Battery Systems

Core Insights - Sunrun has announced the pricing of the largest securitization of leases and power purchase agreements in its history, as well as the largest residential solar securitization in the industry [1][2] Company Performance - Sunrun's Chief Financial Officer highlighted the company's robust performance and ability to attract competitively priced capital, which has been recognized by KBRA with a higher rating for advance rates compared to previous ABS transactions [2] Securitization Details - The transaction includes two classes of A+ rated notes (Class A-1 and Class A-2) and one class of BB rated notes (Class B), with each Class A note totaling $443.15 million [2] - Class A notes were priced with a coupon of 6.25%, reflecting a 205 basis points spread, which is an improvement of 35 basis points from the previous securitization in September 2023 [2] - The initial balance of Class A notes represents a 72.6% advance rate on the Securitization Share of ADSAB, with an expected weighted average life of 6.8 years and a final maturity date of July 30, 2059 [2] Portfolio and Customer Metrics - The notes are backed by a diversified portfolio of 48,628 systems across 19 states, Washington D.C., and Puerto Rico, covering 79 utility service territories [3] - The weighted average customer FICO score for the portfolio is 741 [3] Transaction Timeline and Management - The securitization transaction is expected to close by June 11, 2024 [3] - ATLAS SP Securities acted as the sole structuring agent and joint bookrunner, with several other financial institutions involved in the transaction [4]