US residential solar provider Sunrun announced it has raised $510mn through a new securitization of lease agreements and power purchase contracts. This marks the company’s fifteenth such transaction since 2015 and the fifth issuance in 2025. With this latest deal, Sunrun surpasses the $1.5bn mark in non-recourse debt financing raised this quarter.
Structure of the securitization and credit profiles
The transaction includes two tranches of A- rated notes — the “Class A-1 Notes” for $260mn and the “Class A-2 Notes” for $250mn — along with a BB rated tranche retained by Sunrun. The Class A notes were issued with a coupon of 6.15%, and the publicly marketed A-1 Notes offer a yield of 6.21% with a spread of 240 basis points. The A-2 Notes were privately placed. The initial advance rate for the Class A notes stands at 69% of the Securitization Share of ADSAB (present value calculated at a 6% discount rate).
The Class A notes have a weighted average life of 6.93 years, with an anticipated repayment date of January 30, 2033, and final maturity on January 30, 2061. As in previous deals, Sunrun secured a commitment from a global asset manager for additional subordinated non-recourse financing, backed in part by distributions from the retained Class B Notes.
Underlying portfolio and participating institutions
The securitization is backed by a portfolio of 29,929 solar systems located across 19 US states, Washington D.C., and Puerto Rico, spanning 76 utility service territories. The average customer credit score (FICO) is 743. The transaction is expected to close by September 23, 2025.
Deutsche Bank acted as sole structuring agent and joint bookrunner alongside J.P. Morgan, Morgan Stanley, MUFG, and RBC Capital Markets. Atlas SP, Citigroup Global Markets Inc., and KeyBanc Capital Markets served as co-managers for the issuance.
Continued financing activity in Q3
This transaction follows a private securitization completed in August 2025, which included a $441mn A- rated loan and a retained BB rated subordinated loan. In July, Sunrun also closed a previously announced $431mn public securitization, which carried a yield of 6.374% and the same 240 basis point spread.
These consecutive deals highlight the company’s continued access to both public and private capital markets while maintaining a capital structure free from operational asset guarantees.
