On September 26, 2023, 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 $715 million in A- rated Class A-1 and Class A-2 notes and $80 million in BB+ rated Class B notes for an aggregate $795 million initial balance. The notes are secured by tax-equity and wholly-owned funds of rooftop solar and energy storage systems distributed across various states and utility service territories. Deutsche Bank acted as the sole structuring agent and served as joint bookrunner along with ATLAS SP Securities, BofA Securities, and MUFG Securities Americas, with Credit Agricole Securities, Citigroup Global Markets, ING Financial Markets, J.P. Morgan Securities LLC, SG Americas Securities, TD Securities, and Truist Securities as co-managers for the securitization. The $440 million Class A-1 notes were publicly marketed and the $275 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 senior portfolio term-out financing closed in July 2023, the Class A-1 and Class A-2 notes collectively represent over $1 billion of senior term debt financing raised by Sunrun in the third fiscal quarter of 2023.
Additionally, on September 27, 2023, Sunrun closed a $253,250,000 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. The Wilson Sonsini team included attorneys Ira Palgon, Elina Coss, Nicole Gambino, Bob Hemm, Madeleine Boshart, Seth Cowell, Marc Foster, Sara Pollock, Jonathan Davey, Anne Seymour, Joshua Kaplan, Adrian Broderick, Ben Hoch, Claire Christensen, and Omar Jooma.
For more information, please see Sunrun’s press releases: