Sunrun announces $628.5 million securitization of leases and power purchase agreements, marking its first 2025 issuance.
Quiver AI Summary
Sunrun, the leading provider of clean energy as a subscription service in the U.S., has announced the pricing of its thirteenth securitization, marking its first issuance in 2025. This transaction, valued at over $628.5 million, is the second largest in the industry’s history and showcases Sunrun's strong performance in capital markets. The securitization includes three classes of A rated notes and one BB rated class, with substantial investor interest leading to oversubscription for the A-1 and A-2A notes. The Class A notes are secured by a portfolio of nearly 40,000 systems across multiple states and territories, with an expected closure date of February 5, 2025. This initiative supports Sunrun's strategic growth and emphasizes the company's capability in delivering competitively priced capital for its operations.
Potential Positives
- Sunrun successfully priced its first securitization of 2025, marking its thirteenth securitization since 2015, indicating ongoing financial strength and activity in the capital markets.
- The securitization represents the second largest transaction in the industry’s history, highlighting Sunrun's strong position and credibility within the clean energy sector.
- Class A-1 and Class A-2A notes were oversubscribed, suggesting high investor demand and confidence in Sunrun’s financial stability and growth potential.
- The remarkable improvement in spreads and yields compared to previous securitizations reflects Sunrun's enhanced market position and asset quality, which could lead to lower borrowing costs in the future.
Potential Negatives
- The issuance of BB rated notes in the securitization suggests some underlying risk associated with the retained Class B notes, which could impact investor confidence.
- The need for additional subordinated subsidiary-level non-recourse financing indicates potential challenges in fully leveraging the current securitization without further financial maneuvering.
- The specific structural details of this securitization, including lower-rated notes and the complexity of the financing, may not reflect stability, raising concerns among investors about the company's long-term capital management strategies.
FAQ
What is Sunrun's recent securitization announcement about?
Sunrun announced its thirteenth securitization of leases and power purchase agreements, marking its first issuance in 2025.
How large is Sunrun's latest securitization compared to the industry?
This securitization is the second largest in the solar industry's history, demonstrating strong capital market execution.
What types of notes were included in the securitization?
The transaction included three classes of A rated notes and one class of BB rated notes, with various yields and advance rates.
What is the expected closure date for this securitization?
The securitization is expected to close by February 5, 2025.
Who were the main partners involved in Sunrun's securitization?
ATLAS SP Partners served as the sole structuring agent, alongside BofA Securities, Morgan Stanley, MUFG, TD Securities, and others.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$RUN Insider Trading Activity
$RUN insiders have traded $RUN stock on the open market 32 times in the past 6 months. Of those trades, 0 have been purchases and 32 have been sales.
Here’s a breakdown of recent trading of $RUN stock by insiders over the last 6 months:
- LYNN MICHELLE JURICH has made 0 purchases and 9 sales selling 303,774 shares for an estimated $4,216,461.
- DANNY ABAJIAN (Chief Financial Officer) has made 0 purchases and 6 sales selling 59,118 shares for an estimated $1,108,204.
- JEANNA STEELE (Chief Legal & People Officer) has made 0 purchases and 5 sales selling 33,389 shares for an estimated $596,438.
- MARY POWELL (Chief Executive Officer) has made 0 purchases and 6 sales selling 21,020 shares for an estimated $306,913.
- GERALD ALAN RISK sold 9,045 shares for an estimated $181,217
- PAUL S. DICKSON (Pres. & Chief Revenue Officer) has made 0 purchases and 4 sales selling 11,928 shares for an estimated $169,982.
- EDWARD HARRIS FENSTER sold 4,646 shares for an estimated $83,674
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$RUN Hedge Fund Activity
We have seen 190 institutional investors add shares of $RUN stock to their portfolio, and 230 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ALYESKA INVESTMENT GROUP, L.P. removed 5,880,670 shares (-77.2%) from their portfolio in Q3 2024, for an estimated $106,204,900
- GRANTHAM, MAYO, VAN OTTERLOO & CO. LLC removed 5,191,879 shares (-31.8%) from their portfolio in Q3 2024, for an estimated $93,765,334
- GREENVALE CAPITAL LLP removed 2,766,793 shares (-23.5%) from their portfolio in Q3 2024, for an estimated $49,968,281
- ORBIS ALLAN GRAY LTD removed 2,648,500 shares (-19.1%) from their portfolio in Q3 2024, for an estimated $47,831,910
- AMUNDI removed 2,392,383 shares (-42.4%) from their portfolio in Q3 2024, for an estimated $43,206,436
- VOLORIDGE INVESTMENT MANAGEMENT, LLC added 2,049,142 shares (+158.8%) to their portfolio in Q3 2024, for an estimated $37,007,504
- CITADEL ADVISORS LLC removed 2,028,949 shares (-69.3%) from their portfolio in Q3 2024, for an estimated $36,642,818
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
SAN FRANCISCO, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Sunrun (Nasdaq: RUN), the nation’s leading provider of clean energy as a subscription service, today announced it has priced a securitization of leases and power purchase agreements. The securitization is Sunrun’s thirteenth securitization since 2015 and first issuance in 2025.
“Sunrun’s first securitization transaction of 2025, the second largest in the industry’s history, demonstrates our continued strong execution in the capital markets. Our ability to consistently access deep pools of competitively priced capital to fuel growth is supported by the quality of our assets and our proven track record as an originator and servicer,” said Danny Abajian, Sunrun’s Chief Financial Officer.
The transaction was structured with three separate classes of A rated notes (the “Class A-1”, “Class A-2A”, and Class “A-2B” respectively and together the “Class A”) and a single class of BB rated notes (the “Class B”), which were retained. The $102.0 million Class A-1 notes and the $276.5 million Class A-2A notes were both marketed in a public asset backed securitization whereas the $250.0 million Class A-2B notes were privately placed. The Class A-1 and Class A-2A notes were oversubscribed and carry coupons of 5.99% and 6.41%, respectively. The Class A-1 notes priced at a spread of 170 bps and a 6.035% yield. The Class A-2A notes priced at a spread of 200 bps and a 6.465% yield. The Class A-1 and Class A-2A have a weighted average spread of 192 bps which represents an improvement of 42 bps from Sunrun’s 2024-3 asset backed securitization in September 2024. The initial balance of the Class A notes represents a 65.3% advance rate on the Securitization Share of ADSAB (present value using a 6% discount rate). The expected weighted average life is 4.58 years for the Class A-1 notes and 7.12 years for the Class A-2A notes. Both classes of notes have an Anticipated Repayment Date of April 30, 2032, and a final maturity date of April 30, 2060.
Similar to prior transactions, Sunrun anticipates raising additional subordinated subsidiary-level non-recourse financing secured, in part, by the distributions from the retained Class B notes, which is expected to increase the cumulative advance rate obtained by Sunrun.
The notes are backed by a diversified portfolio of 39,458 systems distributed across 20 states, Washington D.C. and Puerto Rico and 83 utility service territories. The weighted average customer FICO score is 738. The transaction is expected to close by February 5, 2025.
ATLAS SP Partners (“ATLAS SP”) was the sole structuring agent and served as joint bookrunner along with BofA Securities, Morgan Stanley, MUFG and TD Securities. First Citizens Capital Securities and ING served as co-managers for the securitization.
"ATLAS SP was pleased to work with Sunrun again as the sole structuring agent on this securitization transaction,” said Spencer Hunsberger, Head of Energy Origination at ATLAS SP. “Through our deep partnership with Sunrun, we have demonstrated ATLAS’ unique capabilities to structure, place and commit to large transactions in an accelerated and efficient process for the capital markets. We look forward to continuing to support Sunrun as the solar industry continues to become more mainstream for securitized products.”
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
About Sunrun
Sunrun Inc. (Nasdaq: RUN) revolutionized the solar industry in 2007 by removing financial barriers and democratizing access to locally-generated, renewable energy. Today, Sunrun is the nation’s leading provider of clean energy as a subscription service, offering residential solar and storage with no upfront costs. Sunrun’s innovative products and solutions can connect homes to the cleanest energy on earth, providing them with energy security, predictability, and peace of mind. Sunrun also manages energy services that benefit communities, utilities, and the electric grid while enhancing customer value. Discover more at www.sunrun.com .
About ATLAS SP Partners
ATLAS SP is a global investment firm providing stable capital, financing, advisory and institutional products to market participants seeking innovative and bespoke structured credit and asset backed solutions. We’re proud to build upon a legacy of client excellence that includes certainty of execution, deep expertise and full-service capabilities across the asset management landscape. For more information, visit www.atlas-sp.com .
Investor & Analyst Contact:
Patrick Jobin
SVP, Deputy CFO & Investor Relations Officer
[email protected]
Media Contact:
Wyatt Semanek
Director, Corporate Communications
[email protected]
ATLAS Contact:
(212) 355-4449
[email protected]
