Sunrun Closes $33 Million SREC Term Loan Facility
Facility supports SREC monetization and smart residential solar growth in the Northeast U.S.
SAN FRANCISCO, July 19, 2016 (GLOBE NEWSWIRE) -- Sunrun Inc. (Nasdaq:RUN), the largest dedicated residential solar company in the United States, today announced the closing of a $33 million non-recourse term loan facility to support the growth of Sunrun's residential solar business in Maryland, Massachusetts and New Jersey. Sunrun will use the 5-year loan to finance a portfolio of solar renewable energy credits (“SRECs”). The loan will bring down overall system deployment costs, helping more families access affordable, clean residential solar energy systems. The initial lender, who was not disclosed, is a leading international financial institution.
“Sunrun continues to demonstrate that we can access flexible and attractive capital from diverse financial institutions to both enhance upfront cash proceeds and support sustainable growth,” said Bob Komin, Chief Financial Officer of Sunrun. “The Northeast is a thriving pocket of the U.S. solar market and this loan further supports Sunrun’s strong position in the region, which includes our customer origination partnerships with Constellation, NRG, and Ambit Energy.”
The interest rate on the initially drawn amount is approximately 6.8 percent. The facility advances against both contracted and uncontracted SRECs. As such, this term loan facility marks the first time Sunrun has borrowed on a non-recourse basis against cash flows not included in its reported estimated retained value. Sunrun expects this innovative form of financing will act as a template for future SREC-related financings, enabling the upfront monetization of high-quality SREC cash flows.
About Sunrun
Sunrun (Nasdaq:RUN) is the largest dedicated residential solar company in the United States with a mission to create a planet run by the sun. Since establishing the solar as a service model in 2007, Sunrun continues to lead the industry in providing clean energy to homeowners with little to no upfront cost and at a savings to traditional electricity. The company designs, installs, finances, insures, monitors and maintains the solar panels on a homeowner's roof, while families receive predictable pricing for 20 years or more. For more information please visit: www.sunrun.com.
Forward Looking Statement
This press release contains forward-looking statements including, but not limited to, statements regarding the industry’s growth, Sunrun’s growth, customer savings and demand for our products and services. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. You should read the section entitled "Risk Factors" in Sunrun's quarterly report on Form 10-Q, which has been filed with the Securities and Exchange Commission and identifies certain of these and additional risks and uncertainties. We do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
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Sunrun Media Contact Sarah Mier Sarah.Mier@sunrunhome.com 415-580-6817
Released July 19, 2016