Sunrun Completes Its First Securitization of Residential Distributed Solar Assets
On July 9, 2015, Sunrun Inc., a national provider of residential solar to homeowners, completed its first issuance into the asset-backed securitization market by closing a transaction that involved an offering of $111 million in asset-backed notes secured by—and payable from—cash flow tied to residential solar energy systems and the related lease arrangements. Wilson Sonsini Goodrich & Rosati represented Sunrun in the transaction.
On July 1, Sunrun announced the pricing of an offering of $111 million in aggregate principal amount of notes, designated as the Solar Asset Backed Notes, Series 2015-1. The notes were issued by Sunrun Callisto Issuer 2015-1, LLC, a wholly owned subsidiary of Sunrun, and secured by—and payable solely from—the cash flow generated by a portfolio of residential solar energy systems and related customer agreements under a master lease transaction in which Sunrun Callisto is the lessor and receives fixed rent payments.
The notes consist of two classes: $100,000,000 in aggregate principal amount, or Class A Notes, that will bear interest at a rate of 4.40 percent per annum and $11,000,000 in aggregate principal amount of notes that will bear interest at a rate of 5.38 percent per annum and will be subordinated in right of payment to the Class A Notes.
For more information concerning the transaction that closed on July 9, 2015, please see Sunrun's press release.