Sunrun secures $629M in first 2025 solar asset-backed deal

US-headquartered Sunrun, a clean energy subscription provider, has priced its first securitization of 2025. This marks its thirteenth since 2015. The transaction included three classes of A-rated notes. It also had one BB-rated class, which was retained.The Class A-1 notes were $102.0 million, while the Class A-2A and A-2B notes were $276.5 million and $250 million, respectively. The Class A-1 and A-2A notes were publicly marketed and oversubscribed, carrying coupons of 5.99% and 6.41%, with weighted average spreads of 192 basis points.The notes are due for repayment by 2032, with full maturity in 2060. The securitization covers 39,458 systems across 20 states, Washington D.C., and Puerto Rico, with an average customer FICO score of 738. ATLAS SP was the structuring agent, while BofA Securities, Morgan Stanley, MUFG, and TD Securities were joint bookrunners. The transaction was set to close by February 5, 2025. Sunrun’s $629 million securitization follows its Q3 2024 performance, where it reported revenue growth.