Sunrun Prices $267 Million Securitization of Residential Solar and Storage Assets

Rhea-AI Summary

Sunrun (Nasdaq: RUN) priced a $267 million public securitization backed by leases and power purchase agreements on a seasoned portfolio of residential solar and storage assets. This is Sunrun’s seventeenth securitization since 2015 and second issuance in 2026.

The deal includes Class A notes rated A- with a 6.28% coupon, 200 bps spread, 6.33% yield, and an initial balance equal to a 74.2% advance rate on ADSAB. Class B notes are rated BB- and retained by Sunrun. The Class A notes have an expected weighted average life of 4.94 years, an optional redemption date of July 30, 2035, and final maturity on January 30, 2054.

The securitization is backed by 37,595 systems across 42 utility territories in 13 states with a weighted average customer FICO of 756 and is expected to close by the end of August.

Positive

• $267 million public Class A securitization issuance completed
• Class A credit spread tightened by 20 bps versus April 2026 deal
• 74.2% advance rate on ADSAB for Class A Notes
• Diversified collateral pool of 37,595 systems in 13 states
• Weighted average customer FICO of 756 in securitized portfolio

Negative

• None.

News Explained

Sunrun has priced, but not closed, a $267 million asset-backed refinancing through public Class A notes backed by leases and power purchase agreements; it retains the Class B notes. The release describes notes rather than additional shares, so it does not disclose the share-count increase that would reduce existing common holders’ percentage ownership.

Market Context

RUN's July 16 award announcement was followed by a -4.93% 24-hour reaction. That historical divergen...

Analysis

RUN's July 16 award announcement was followed by a -4.93% 24-hour reaction. That historical divergence adds context to this financing event; Net Selling and high short positioning remain sourced risk factors to monitor.

Key Figures

Securitization size: $267 million Credit spread: 200 basis points Spread improvement: 20 basis points +5 more

8 metrics

Securitization size $267 million Residential solar and storage asset securitization

Credit spread 200 basis points Class A Notes

Spread improvement 20 basis points Versus April 2026 public Class A-1 Notes

Coupon 6.28% Class A Notes

Yield 6.33% Class A Notes

Advance rate 74.2% Initial Class A Notes balance on ADSAB

Weighted average life 4.94 years Class A Notes

Systems in portfolio 37,595 systems Distributed across 42 utility service territories in 13 states

Historical Context

5 past events · Latest: Jul 23 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 23	Vehicle-to-grid partnership	Positive	-5.2%	Massachusetts vehicle-to-grid pilot announced with Eversource, National Grid, and EnergyHub
Jul 16	Customer service award	Positive	-4.9%	Sunrun received BestCompany.com's Preferred Partner and Platinum Solar awards
Jul 15	Earnings date announcement	Neutral	-0.1%	Second-quarter 2026 earnings report scheduled for August 5
Jul 14	Grid capacity expansion	Positive	+3.0%	California distributed power plant expanded dispatch capacity to 425 megawatts
Jul 08	AI compute pilot	Positive	-1.6%	Distributed AI data center pilot launched using existing home energy systems

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent positive or neutral announcements mostly diverged from the stock's reaction, with four of five events followed by negative 24-hour moves.

Key Terms

securitization, power purchase agreements, advance rate, weighted average life, +1 more

5 terms

securitization financial

"today announced it has priced a securitization of leases and power purchase agreements"

Securitization is when a bank or company takes a bunch of loans or assets, like mortgages or car loans, and bundles them together into a single package. They then sell pieces of this package to investors, who receive regular payments from the borrowers. This process helps the original lender get money quickly and spreads the risk among many investors.

power purchase agreements financial

"priced a securitization of leases and power purchase agreements"

A power purchase agreement is a long-term contract in which a buyer agrees to purchase electricity from a specific generator at a set price and schedule, much like a multi-year subscription for energy. For investors, these contracts matter because they lock in predictable revenue and price terms, reducing exposure to volatile wholesale power markets and making project cash flows and financing risks easier to evaluate.

advance rate financial

"represents a 74.2% advance rate on ADSAB"

The advance rate is the percentage of an asset’s appraised or stated value that a lender is willing to loan against, commonly used for receivables, inventory, or property. For investors it shows how much immediate cash a company can raise from its assets — like the share of value a pawnbroker will lend you — and affects liquidity, borrowing capacity and perceived credit risk.

weighted average life financial

"expected weighted average life of 4.94 years"

Weighted average life (WAL) measures the average time it takes for an investor to get back the principal of a loan or bond, weighted by the size and timing of each principal payment. It matters because it tells investors how long their money is actually at risk and helps compare instruments with different payment schedules—like knowing the average time you’ll get slices of a pie rather than when the whole pie might return.

asset backed securitization financial

"marketed in a public asset backed securitization"

Asset backed securitization packages a group of assets that generate predictable cash flows—like loans, leases, or receivables—into tradable securities sold to investors. Think of it as pooling many small IOUs into a bond so investors receive steady payments while the originator converts future income into immediate cash. It matters to investors because it offers access to specific income streams, diversified risk, and varying levels of credit quality and yield within the same market instrument.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SAN FRANCISCO, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Sunrun (Nasdaq: RUN), America’s largest provider of home battery storage, solar, and home-to-grid power plants, today announced it has priced a securitization of leases and power purchase agreements. The securitization is Sunrun’s seventeenth securitization since 2015 and second issuance in 2026.

“This $267 million public securitization involves refinancing a seasoned portfolio of residential solar assets. We appreciate our financial partners’ continued confidence in our high quality assets and servicing standards,” said Danny Abajian, Sunrun’s Chief Financial Officer. “This securitization was raised with Class A notes being priced at a 200 basis point credit spread, a 20 basis point improvement from the public Class A-1 Notes in Sunrun’s April 2026 securitization.”

The securitization was structured with one class of A- rated notes (the “Class A Notes”) and one class of BB- rated notes (the “Class B Notes”). The Class B Notes were retained by Sunrun. The $267 million Class A Notes were marketed in a public asset backed securitization. The Class A Notes were priced with a coupon of 6.28%. The pricing of the Class A Notes reflects a spread of 200 basis points and a 6.33% yield. The initial balance of the Class A Notes represents a 74.2% advance rate on ADSAB (present value using a 7.5% discount rate). The Class A Notes have an expected weighted average life of 4.94 years, an Optional Redemption Date of July 30, 2035, and a final maturity date of January 30, 2054.

The notes are backed by a diversified portfolio of 37,595 systems distributed across 42 utility service territories in 13 states. The weighted average customer FICO is 756. The transaction is expected to close by the end of August.

BofA Securities was the sole structuring agent and served as joint bookrunner with Citigroup, Morgan Stanley, and RBC Capital Markets. KeyBanc Capital Markets and First Citizens Capital Securities served as co-managers for the securitization.

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) is America’s largest provider of home battery storage, solar, and home-to-grid power plants. As the pioneer of home energy systems offered through a no-upfront-cost subscription model, Sunrun empowers customers nationwide with greater energy control, security, and independence. Sunrun supports the grid by providing on-demand dispatchable power that helps prevent blackouts and lowers energy costs. Learn more at www.sunrun.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned against placing undue reliance on such statements. In some cases, you can identify forward-looking statements because they contain words such as "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "target," "projects," "contemplates," "potential," or the negative of these words or other similar terms or expressions. Forward-looking statements in this press release include, but are not limited to, statements regarding: the anticipated closing of the securitization; the anticipated terms and timing of additional subordinated subsidiary-level non-recourse financing and its effect on the Company’s cumulative advance rate; the Company's ability to access capital markets at scale and on favorable terms; and the expected demand for the Company's solar and storage assets.

These statements are not guarantees of future performance; they reflect the Company's current views with respect to future events and are based on assumptions and estimates and are subject to known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from expectations or results projected or implied by forward-looking statements. These risks and uncertainties include, but are not limited to: changes in the capital markets, including the availability and terms of financing for the solar and storage industry; volatile or rising interest rates; changes in policies, regulations, and incentives, including net metering, interconnection limits, fixed fees, and the availability of tax credits; tariff and trade policy impacts; supply chain risks; the Company's ability to meet covenants in its investment funds and debt facilities; and the factors described under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and subsequent Quarterly Reports on Form 10-Q, each as filed with the U.S. Securities and Exchange Commission.

All forward-looking statements in this press release are based on information available to the Company as of the date hereof, and the Company assumes no obligation to update publicly these forward-looking statements for any reason, except as required by law.

Investor & Analyst Contacts:

Patrick Jobin
SVP, Deputy CFO & Investor Relations Officer
investors@sunrun.com

Media Contact:

Wyatt Semanek
Sr. Director, Corporate Communications
press@sunrun.com

FAQ

What did Sunrun (RUN) announce about its $267 million securitization on August 4, 2026?

Sunrun announced pricing of a $267 million public securitization of residential solar and storage leases and power purchase agreements. According to Sunrun, this is its seventeenth securitization since 2015 and second issuance in 2026, refinancing a seasoned portfolio of residential solar assets.

What are the key terms of Sunrun’s Class A Notes in the August 2026 RUN securitization?

Sunrun’s Class A Notes are A- rated, total $267 million, and carry a 6.28% coupon. According to Sunrun, they priced at a 200 basis point spread, yield 6.33%, have a 74.2% advance rate on ADSAB, and an expected 4.94-year weighted average life.

How does the August 2026 Sunrun (RUN) securitization pricing compare to its April 2026 deal?

The August 2026 Class A Notes priced at a 200 basis point credit spread, a 20 basis point improvement versus Sunrun’s April 2026 public Class A-1 Notes. According to Sunrun, this reflects improved financing terms for its securitized residential solar portfolio.

What collateral backs Sunrun’s August 2026 $267 million securitization (RUN)?

The notes are backed by a portfolio of 37,595 residential systems across 42 utility territories in 13 states. According to Sunrun, the collateral pool has a weighted average customer FICO score of 756, indicating relatively strong borrower credit quality in the securitization.

When do Sunrun’s August 2026 Class A Notes (RUN) mature and what are key dates?

Sunrun’s Class A Notes have an expected weighted average life of 4.94 years, with an Optional Redemption Date of July 30, 2035. According to Sunrun, the final maturity date is January 30, 2054, and the transaction is expected to close by end of August.

Who managed Sunrun’s August 2026 $267 million securitization of solar assets?

BofA Securities acted as sole structuring agent and joint bookrunner with Citigroup, Morgan Stanley, and RBC Capital Markets. According to Sunrun, KeyBanc Capital Markets and First Citizens Capital Securities served as co-managers on the August 2026 securitization transaction.