On June 11, 2024, Sunrun, the nation’s leading home solar, battery storage, and energy services company, completed its latest asset-backed securitization of solar leases and power purchase agreements. The securitization consists of $886.3 million in A+ rated Class A-1 and Class A-2 notes and $91.2 million in BB rated Class B notes, for an aggregate $977.5 million initial balance. The notes are secured by two tax equity funds of rooftop solar and energy storage systems distributed across various states and utility service territories. ATLAS SP Securities, a division of Apollo Global Securities, LLC, acted as structuring agent and served as joint bookrunner along with Citigroup Global Markets Inc., J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., and RBC Capital Markets, LLC as co-managers and initial purchasers for the securitization, and SMBC Nikko Securities America, Inc. as an initial purchaser. The $443.15 million Class A-1 notes were publicly marketed and the $443.15 million Class A-2 notes were privately placed. At closing, the asset-backed securitization was both the largest ever in Sunrun’s history and across the entire residential solar industry. Combined with a $230 million asset-backed securitization of solar leases and power purchase agreements closed in April 2024, the Class A-1 and Class A-2 notes collectively represent over $1 billion of senior debt financing raised by Sunrun in the second fiscal quarter of 2024. 

Additionally, in June 2024, Sunrun closed a subordinated subsidiary-level non-recourse financing, which is secured in part by the distributions from the Class B notes.

Wilson Sonsini Goodrich & Rosati advised Sunrun on all core and ancillary structuring, securities, tax equity-related, senior and mezzanine debt-related, commercial, and tax issues, and transaction documents related to these financings, including the underlying tax equity funds. The Wilson Sonsini team included attorneys Ira Palgon, Elina Coss, Nicole Gambino, Bob Hemm, Madeleine Boshart, Marc Foster, Sara Pollock, Adrian Broderick, Tiphanie Cascella, Nic Gladd, Claire Christensen, Steve Boughton, Max Learner, and Omar Jooma.

For more information, please see Sunrun’s news releases here and here.