Sunrun, the largest dedicated residential solar company in the U.S., and Investec Inc. and Investec Bank plc (together 'Investec') today announced the close of $195 million of senior credit facilities to support the growth of Sunrun's residential solar business. Sunrun will use the funds to help more Americans install high quality solar systems on their homes and reduce their electricity costs. This is Sunrun's first syndicated financing and signifies a new source of capital for the company.
'This financing significantly reduces Sunrun's cost of capital, which will help us lower costs for homeowners and also positions the company well for continued growth,' said Jason Cavaliere, VP of Project Finance at Sunrun. 'The strength of our project portfolio and operating history, among other factors, allowed us to achieve a lower interest rate and longer tenor than any publicly announced residential solar backleverage facility.'
The non-recourse financing will be issued to Sunrun under a senior/subordinated credit structure The senior facilities amount to $171 million, while the subordinated facility amounts to $24 million As sole bookrunner, Investec assembled a syndicate of lenders to provide the senior facilities.
'We are very excited to have closed this financing for Sunrun,' said Mike Pantelogianis, Co-Head of Power at Investec. 'We have established a cost effective financing solution that leverages long-term cash flows to support the long term growth of Sunrun's business.'
Ralph Cho, also Co-Head of Power at Investec added, 'Sunrun trusted our distribution capabilities and we were able to deliver a syndicate of lenders, which included several first-time lenders to the U.S. residential solar market. The financing was met with strong interest and was oversubscribed.'
Sunrun pioneered solar as a service, a way for homeowners to go solar without a significant upfront investment, and is the largest dedicated residential solar company in the U.S. Sunrun provides end-to-end service for homeowners to choose clean, solar energy and receive predictable pricing for solar energy for 20 years. The company designs, installs, finances, insures, monitors and maintains the solar panels on a homeowner's roof, while families pay just for the electricity at a lower rate than their current utility. Since Sunrun introduced solar as a service in 2007, it has become the preferred way for consumers to go solar in the nationâ€™s top solar markets. For more information please visit: www.sunrun.com.