Sunrun, a U.S.-based solar and energy storage installer, said it has closed a $431 million securitization backed by leases and power purchase agreements (PPAs), marking its third such deal of 2025.
The transaction includes $331 million in Class A-1 notes, which were publicly marketed and rated A-. The notes were oversubscribed and priced at a spread of 240 basis points, offering a 6.34% yield and a 6.15% coupon. An additional $100 million in Class A-2 notes, rated BB-, was privately placed, the company said.
The asset-backed securitization (ABS) is tied to a diversified portfolio of 63,318 residential solar systems across 12 states, Washington D.C., and 40 utility service territories, with a weighted average customer FICO score of 757. The deal is expected to close by July 30.
Bank of America acted as the sole structuring agent and joint bookrunner, alongside Citigroup, Keybanc, and Truist.
“Sunrun’s third securitization transaction of 2025 represents a refinancing of a seasoned pool of residential solar assets,” said Danny Abajian, chief financial officer at Sunrun. “The strong performance of our numerous securitizations backed by these assets continues to be notable. The credit ratings for all Sunrun securitizations have been affirmed or upgraded since their issuance, as the performance of these transactions have remained in line with expectations.”
The Class A notes have an expected weighted average life of 5.08 years, with an optional redemption date of Jan. 30, 2034, and a final maturity of Jan. 30, 2054.
The oversubscription of the Class A-1 notes signals “robust market demand” for Sunrun’s financing products, according to a Nasdaq report.
Earlier this year, Sunrun priced a $629 million senior securitization backed by 39,458 systems across 20 states, Washington D.C., Puerto Rico, and 83 utility service territories. That transaction, the company said, was the second-largest residential solar securitization to date and closed in February.
Despite ongoing headwinds in the solar industry, Sunrun’s recent deals suggest continued investor confidence in the long-term performance of residential solar portfolios.
