Sunrun, an US residential solar and storage provider, announced on Wednesday the successful pricing of a USD 886.3 million (EUR 815.7m) securitization of leases and power purchase agreements, marking the largest such transaction ever undertaken by the company and the industry.
The securitization comprises two USD 443.15 million tranches of A+ rated notes, with one tranche offered in a public asset-backed securitization and the other privately placed, along with a single class of BB rated notes. The Class A notes, priced with a coupon of 6.25%, have an expected weighted average life of 6.8 years.
Sunrun plans to secure additional subordinated subsidiary-level non-recourse financing, partially backed by distributions from the retained Class B notes.
The underlying assets for the notes consist of a diverse portfolio encompassing 48,628 residential solar and battery systems across 19 states, as well as Washington DC and Puerto Rico.
ATLAS SP Securities served as the sole structuring agent and joint bookrunner, alongside JP Morgan Securities, Morgan Stanley & Co, MUFG Securities Americas, and RBC Capital Markets. Citigroup Global Markets and KeyBanc Capital Markets acted as co-managers for the securitization.
