New financing totaling $195 million was recently closed by Sunrun + Investec — financing that will be used to support the continued growth of Sunrun’s residential solar business, as per recent reports.
Something worth noting — the new senior credit facilities represent Sunrun’s first syndicated financing. Also, this non-recourse financing will be issued to Sunrun under a senior/subordinated credit structure — with the senior facilities adding up to $171 million, and the subordinated facility amounting to $24 million.
With Investec as the sole bookrunner, the company enlisted a syndicate of various lenders in order to provide the senior facilities.
“This financing significantly reduces Sunrun’s cost of capital, which will help us lower costs for homeowners and also positions the company well for continued growth,” stated Jason Cavaliere, VP of Project Finance at Sunrun. “The strength of our project portfolio and operating history, among other factors, allowed us to achieve a lower interest rate and longer tenor than any publicly announced residential solar backleverage facility.”
“We are very excited to have closed this financing for Sunrun,” stated Mike Pantelogianis, Co-Head of Power at Investec. “We have established a cost effective financing solution that leverages long-term cash flows to support the long term growth of Sunrun’s business.”
The Co-Head of the power division at Investec, Ralph Cho, chimed in, with: “Sunrun trusted our distribution capabilities and we were able to deliver a syndicate of lenders, which included several first-time lenders to the US residential solar market. The financing was met with strong interest and was oversubscribed.”