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.

WSGR's team was led by partner Ira Palgon and included partners Randy Lewis and Ben Hoch, and associates Josh Heideman, Nicole Gambino, Erik Franks, and Grace Hsu.

For more information concerning the transaction that closed on July 9, 2015, please see Sunrun's press release.