Sunnova Closes Sixth Residential Solar Loan Securitization

Sunnova Energy International (Sunnova) on Monday announced the closing of its 2nd solar-loan securitization and 6th residential solar securitization overall.

The company is a leading US-based residential solar and energy storage service provider.

Commenting on the development, William J. (John) Berger, Chief Executive Officer of Sunnova, said that “once again, the secured financing market has recognized the value and importance of providing superior customer service for solar and storage offerings.”

“Despite the current dislocation in the structured finance markets, we were still able to achieve an implied blended yield of approximately 3.75 per cent and an overall advance rate of approximately 87.5 per cent 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 cash flows and focus on providing best-in-class customer service, resulted in extremely strong demand and pricing for this securitization,” commented Berger.

The company said that its goal is to be the source of clean, affordable and reliable energy, with a simple mission: to power energy independence so that homeowners have the freedom to live life uninterrupted.

Berger further added that “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.”

Besides, the two-tranche of securitization includes – USD 135.850 million in A- (sf) rated 2.98 per cent notes and USD 22.642 million in subordinated BB- (sf) rated 7.25 per cent notes.

Moreover, these notes are backed by a diverse portfolio of over 5,000 solar loans distributed across 17 states and territories including Puerto Rico and the Commonwealth of the Northern Mariana Islands.

Further, the weighted average customer FICO score of the related customers at the time of origination is 735. The company is intended to use the proceeds from the sale of notes for the payment of expenses related to the offering of the notes, the repayment of one or more currently existing financing arrangements of its subsidiaries and for general corporate purposes.

Meanwhile, Credit Suisse was the sole structuring agent and bookrunner for the securitization.

Earlier, the company launched the new, innovative product, which bundles financing for roof replacements with a Sunnova solar or solar + battery storage system under a single loan or finance agreement.