Sunrun raises USD 835m in financing

US home solar and battery provider Sunrun Inc (NASDAQ:RUN) on Thursday said it has secured USD 835 million (EUR 788m) in non-recourse financing to back continued growth.

The company has closed a USD-600-million non-recourse syndicated bank facility that supports a 335-MW portfolio of leases and power purchase agreements. This includes a USD-575-million amortising senior loan with a final maturity date of December 23, 2029 and a USD-25-million debt service reserve letter of credit.

Sunrun has simultaneously closed a USD-235-million non-recourse subordinated financing.

Chief financial officer Danny Abajian is pleased with the cost of capital. “The Senior Loan priced at an initial credit spread 100 basis points below recent Solar Loan asset-backed securitisation transactions observed in the sector, while delivering a cumulative advance rate above our prior guidance range of 75%-85%,” Abajian said.

The USD-575-million senior loan was priced at a credit spread of 212.5 basis points to the Daily Simple Secured Overnight Financing Rate (SOFR), with a 12.5 basis points margin step-up on the fourth year. The company also agreed long-term amortising fixed-for-floating interest rate swaps that give a weighted-average fixed base rate of 3.49%, and a total initial swapped senior loan cost of debt of 5.62%.

In its third-quarter results, Sunrun reported networked solar energy capacity of 5,392 MW, of which 4,567 MW for subscribers. Third quarter installations stood at 255.8 MW.

(USD 1 = EUR 0.943)

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