Sunrun Prices Record-Setting $715 million Senior Securitization of Residential Solar & Battery Systems

SAN FRANCISCO, Sept. 14, 2023 (GLOBE NEWSWIRE) -- Sunrun (Nasdaq: RUN), the nation’s leading provider of residential solar, storage and energy services, today announced it has priced a securitization of leases and power purchase agreements, known as Sunrun’s solar-as-a-service offering.

“The capital markets continue to recognize the high quality of Sunrun’s residential solar assets, and the company’s industry-leading performance as an originator and servicer. This latest securitization sets new records, representing the largest securitization in Sunrun’s history and also the largest across the entire residential solar industry. Combined with a senior portfolio term-out financing closed in July, the Class A Notes represent over $1 billion of senior term debt financing raised this quarter, demonstrating deep access to attractively-priced capital across multiple private and public markets,” said Danny Abajian, Sunrun’s Chief Financial Officer.

The transaction was structured with two pari passu tranches of A- rated notes (the “Class A-1” and “Class A-2”, respectively and together the “Class A”) and a single class of BB+ (“Class B”) rated notes. The $440mm Class A-1 notes were marketed in a public asset backed securitization whereas the $275mm Class A-2 notes were privately placed. The Class A-1 and A-2 notes were both priced with a coupon of 6.60%. While $340mm of publicly placed Class A-1 notes were initially offered, strong investor demand resulted in a spread of 240bps and a yield of 6.78%, while also enabling the Class A-1 notes to be upsized by $100mm to $440mm. The spread of 240bps represents an improvement of 25bps from Sunrun’s 2023-1 asset backed securitization in May 2023. The Class A notes advance rate is approximately 67.4% of the securitization share of the aggregate discounted solar asset balance (i.e., contracted cash flows available for debt service) using a 6% discount rate. The Class A notes have an expected weighted average life of 6.53 years, an Anticipated Repayment Date of July 30, 2030, and a final maturity date of January 30, 2059.

The notes are backed by a diversified portfolio of 57,731 solar rooftop systems distributed across 21 states, and Washington D.C. and Puerto Rico and 85 utility service territories. The weighted average customer FICO score is 741. The transaction is expected to close by September 26, 2023.

Deutsche Bank Securities was the sole structuring agent and served as joint bookrunner along with Atlas SP Securities, BofA Securities, and MUFG Securities Americas. Citigroup Global Markets, Credit Agricole Securities, ING Financial Markets, J.P. Morgan Securities, SG Americas Securities, TD Securities, and Truist Securities served as co-managers for the securitization.

This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Investor & Analyst Contact:
Patrick Jobin
Senior Vice President, Finance & IR

Media Contact:
Wyatt Semanek
Director, Corporate Communications

About Sunrun

Sunrun Inc. (Nasdaq: RUN) is the nation’s leading home solar, storage, and energy services company. Founded in 2007, Sunrun pioneered home solar service plans to make local clean energy more accessible to everyone for little to no upfront cost. Sunrun’s innovative home storage solution brings families affordable, resilient, and reliable energy. The company can also manage and share stored solar energy to provide benefits to households, utilities, and the electric grid while reducing our reliance on polluting energy sources. For more information, please visit

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Source: Sunrun Inc.