Sunrun, a leading provider of clean energy solutions in the United States, has priced its new $431 million securitization, backed by leases and power purchase agreements for residential solar systems. This operation represents the company’s fourteenth public securitization since 2015 and the third one in 2025.
Transaction Structure
This securitization consists of two separate classes of A-rated notes, the “Class A-1 Notes” and “Class A-2 Notes,” as well as a class of BB-rated notes, the “Class B Notes,” which were retained by Sunrun. The $331 million Class A-1 Notes were marketed in a public asset-backed securitization, while the $100 million Class A-2 Notes were privately placed. The coupon on the Class A Notes is set at 6.15%, similar to that of the company’s previous securitization in March. The oversubscription of the Class A-1 Notes allowed the price to be set at a spread of 240 basis points and a yield of 6.374%.
Underlying Portfolio and Performance
The structure of the transaction is backed by a diversified portfolio of 63,318 systems spread across 12 states and Washington D.C., covering 40 utility service territories. The average FICO score of the customers is 757. The transaction is expected to close by July 30, 2025.
Danny Abajian, Sunrun’s Chief Financial Officer, expressed satisfaction with the performance of the securitization, highlighting the strong execution of the transaction and the continued recognition of the company’s asset quality and excellence as a servicer. “The solid performance of our previous securitizations has led to credit ratings being maintained or upgraded since their issuance,” he noted.
