"This $584 million securitization transaction further exhibits Sunrun's ability to access capital at scale and at improving terms," said Danny Abajian, Sunrun's Chief Financial Officer. "This securitization was raised with A-1 notes being priced at a 220 basis point credit spread, a 20 basis point improvement from Sunrun's most recent transactions last year. With the pricing of this securitization, Sunrun has now successfully executed sixteen securitization transactions since 2015, reflecting the strong demand for our high-quality solar and storage assets."
The securitization was structured with two classes of A- rated notes (the "Class A-1 Notes" and "Class A-2 Notes", respectively, and together the "Class A Notes") and a single class of BB rated notes (the "Class B Notes"), which were retained. The $234 million Class A-1 Notes were marketed in a public asset backed securitization, and the $350 million Class A-2 Notes were privately placed. The Class A Notes were priced with a coupon of 6.30%. The pricing of the Class A-1 Notes reflects a spread of 220 basis points and a 6.353% yield. The initial balance of the Class A Notes represents a 79.3% advance rate on the Securitization Share of ADSAB (present value using a 7.5% discount rate). The Class A Notes have an expected weighted average life of 6.88 years, an Anticipated Repayment Date of August ...
