Sunrun Prices $510 million Securitization, Surpassing $1.5 billion of Non-Recourse Debt Capital Raised in the Third Quarter

Rhea-AI Summary

Sunrun (Nasdaq: RUN), America's leading residential battery storage and solar provider, has successfully priced a $510 million securitization of leases and power purchase agreements. This marks the company's fifteenth securitization since 2015 and fifth issuance in 2025.

The securitization includes two A-rated tranches: $260 million Class A-1 Notes marketed publicly and $250 million Class A-2 Notes placed privately, both with a 6.15% coupon rate. The notes are backed by 29,929 systems across 19 states, with customers having an average FICO score of 743.

Combined with an August private securitization, Sunrun will have raised over $1.5 billion in non-recourse debt financing during Q3 2025, demonstrating strong capital markets access and diverse financing channels.

Positive

• None.

Negative

• Increased debt obligations could impact future financial flexibility
• Higher interest rate environment reflected in 6.15% coupon rate

Insights

Financial Markets Analyst

Sunrun successfully raised $510M in securitization, demonstrating strong capital markets access with favorable terms despite high interest rate environment.

Sunrun has priced its fifteenth securitization since 2015, consisting of $510 million in notes backed by residential solar leases and power purchase agreements. This transaction, combined with an August securitization, brings Sunrun's Q3 non-recourse debt financing to over $1.5 billion.

The structure reveals sophisticated financial engineering with two tranches of A-rated notes totaling $510 million - $260 million marketed publicly and $250 million placed privately. Both received A- ratings and 6.15% coupons, with public notes priced at a 240 basis point spread yielding 6.21%. The company retained the BB-rated Class B Notes, indicating confidence in the underlying assets.

The 69% advance rate on the securitization share reflects lender comfort with the collateral quality. The portfolio backing these notes encompasses 29,929 systems across 19 states with a weighted average customer FICO score of 743, signaling high-quality underlying assets with strong credit profiles.

Particularly noteworthy is Sunrun's ability to maintain consistent capital markets access, having completed five securitizations in 2025 alone. The company has also secured additional subordinated subsidiary-level financing from a large global asset manager, enhancing the total advance rate. This diversified financing approach demonstrates the company's financial flexibility and ability to fuel growth through various capital channels despite the current interest rate environment.

SAN FRANCISCO, Sept. 12, 2025 (GLOBE NEWSWIRE) -- Sunrun (Nasdaq: RUN), America’s largest provider of residential 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 fifteenth securitization since 2015 and fifth issuance in 2025.

“Sunrun continues to show deep capital markets access, leveraging its strong relationships with both public and private investor groups,” said Danny Abajian, Sunrun’s Chief Financial Officer. “Inclusive of this transaction and a privately placed securitization in August, Sunrun will have raised more than $1.5 billion in senior and subordinated non-recourse debt financings in Q3, and we look forward to continuing to utilize our diverse financing channels to fuel profitable growth.”

The securitization was structured with two pari passu tranches of A- rated notes (the “Class A-1 Notes” and “Class A-2 Notes,” respectively, and together the “Class A Notes”) and a single class of BB rated notes (the “Class B Notes”), which were retained. The $260 million Class A-1 Notes were marketed in a public asset backed securitization, and the $250 million Class A-2 Notes were privately placed. The Class A Notes were priced with a coupon of 6.15%. The pricing of the Class A-1 Notes reflects a spread of 240 basis points and a 6.21% yield. The initial balance of the Class A Notes represents a 69% advance rate on the Securitization Share of ADSAB (present value using a 6% discount rate). The Class A Notes have an expected weighted average life of 6.93 years, an Anticipated Repayment Date of January 30, 2033, and a final maturity date of January 30, 2061. Similar to prior transactions, Sunrun has received a commitment from a large global asset manager to provide 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 29,929 systems distributed across 19 states, and Washington D.C. and Puerto Rico and 76 utility service territories. The weighted average customer FICO is 743. The transaction is expected to close by September 23, 2025. Deutsche Bank was the sole structuring agent and served as joint bookrunner with J.P. Morgan, Morgan Stanley, MUFG, and RBC Capital Markets. Atlas SP, Citigroup Global Markets Inc., and KeyBanc Capital Markets served as co-managers for the securitization.

Prior to this transaction, in August 2025, Sunrun priced its fourth securitization transaction of 2025 in a privately placed transaction. The August securitization included an A- rated loan with a principal amount of $441 million, and a BB rated loan, which was retained. In connection with this August 2025 transaction, Sunrun also raised subordinated non-recourse debt financing provided by a large global asset manager (secured, in part, by the distributions from the retained BB rated loan). In July 2025, Sunrun also priced its previously announced $431 million public securitization with a spread of 240 basis points and a 6.374% yield.

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 residential 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 lower energy costs. Learn more at www.sunrun.com.

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

Media Contact:
Wyatt Semanek
Director, Corporate Communications
press@sunrun.com

FAQ

What is the size of Sunrun's latest securitization in 2025?

Sunrun's latest securitization is $510 million, consisting of $260 million Class A-1 Notes and $250 million Class A-2 Notes.

How much debt financing has Sunrun (RUN) raised in Q3 2025?

Sunrun has raised over $1.5 billion in senior and subordinated non-recourse debt financings in Q3 2025.

What is the interest rate on Sunrun's September 2025 securitization?

The Class A Notes were priced with a 6.15% coupon rate, with the Class A-1 Notes having a 240 basis point spread and 6.21% yield.

How many solar systems back Sunrun's September 2025 securitization?

The securitization is backed by a portfolio of 29,929 systems distributed across 19 states, Washington D.C., and Puerto Rico.

What is the credit quality of Sunrun's customer base in this securitization?

The weighted average customer FICO score is 743, indicating a high-quality customer portfolio.