Sunrun Announces Pricing of $431 Million Solar Asset Securitization in 2025

Sunrun Prices $431 Million Solar Asset Securitization in 2025

Sunrun (Nasdaq: RUN), the top U.S. provider of subscription-based clean energy, has announced the pricing of its fourteenth public securitization since 2015 and its third such transaction in 2025.

Details of the Securitization Deal

The new securitization refinances a seasoned group of residential solar leases and power purchase agreements. Danny Abajian, Sunrun’s Chief Financial Officer, emphasized the company's strong track record, stating that Sunrun's asset-backed securities have consistently performed well, with credit ratings affirmed or upgraded over time.

The deal includes two classes of A-rated notes (Class A-1 and Class A-2) and a single class of retained BB-rated notes (Class B). The $331 million Class A-1 Notes were sold in a public offering and were oversubscribed, priced at a spread of 240 basis points with a 6.374% yield. The $100 million Class A-2 Notes were placed privately. Both classes of A Notes feature a coupon rate of 6.15%, mirroring Sunrun’s previous transaction completed in March.

Overall, the $431 million transaction represents a 68% advance rate on the present value of the underlying contracts (calculated using a 6% discount rate). The Class A Notes have a weighted average life of 5.08 years, with an optional redemption date of January 30, 2034, and final maturity set for January 30, 2054. The Class B Notes will be pledged as part of an existing subordinated non-recourse financing structure.

Portfolio and Market Confidence

The notes are secured by a diversified pool of 63,318 solar systems across 12 states and Washington, D.C., covering 40 utility territories. The transaction demonstrates strong credit quality, with a weighted average customer FICO score of 757. Closing is expected by July 30, 2025.

Bank of America acted as the sole structuring agent and joint bookrunner, alongside Citigroup, Keybanc, and Truist.

About Sunrun

Since 2007, Sunrun has led the U.S. solar industry by offering residential solar and battery storage solutions with no upfront costs. The company’s services help homeowners access clean, reliable, and affordable energy while supporting grid stability and delivering value to customers and communities.

This content is for informational purposes only and does not constitute financial advice.