Sunnova Energy International, a residential solar and energy storage service provider, closed its second solar-loan securitization and sixth residential solar securitization overall.
“Once again, the secured financing market has recognized the value and importance of providing superior customer service for solar and storage offerings,” William J. Berger, CEO of Sunnova, said. “Despite the current dislocation in the structured finance markets, we were still able to achieve an implied blended yield of approximately 3.75% and an overall advance rate of approximately 87.5% on a loan-to-value basis. The combination of our proven track record and excellent payment performance on prior securitizations, together with our well-capitalized corporate balance sheet, strong recurring cashflows and focus on providing best-in-class customer service, resulted in extremely strong demand and pricing for this securitization. We do anticipate further improvements in the solar securitization cost of debt as the market continues to heal and recognize the payment performance results through this economic and health crisis. This latest transaction will help us add yet another chapter to our growth story as we continue to power energy independence for our customers.”
The two-tranche securitization includes $135.850 million in A- (sf) rated 2.98% notes and $22.642 million in subordinated BB- (sf) rated 7.25% notes. The notes are backed by a portfolio of more than 5,000 solar loans distributed across 17 states and territories including Puerto Rico and the Commonwealth of the Northern Mariana Islands. The weighted average customer FICO score of the related customers at the time of origination is 735. Sunnova intends to use the proceeds from the sale of the notes for the payment of expenses related to the offering of the notes, the repayment of one or more currently existing financing arrangements of Sunnova’s subsidiaries and for general corporate purposes.
Credit Suisse was the sole structuring agent and bookrunner for the securitization.
Sunnova Energy International is a residential solar and energy storage service provider.