Solar industry analysts have long mooted the securitization of distributed solar leases. Sunrun has delivered today with a US$111 million aggregate securitized solar asset offering.
Sunrun Callisto will be the issuer of the notes, itself a subsidiary of Sunrun.
Two classes of notes will be issued. The first Class A Notes are to be valued at $100 million and will bear an annual interest rate of 4.4%. The second issues worth $11 million will bear the higher interest rate of 5.38%.
Sunrun anticipates the notes to be repaid in full by Jully 22, 2024.
Only qualified institutional buyers can purchase the notes, in accordance with SEC regulations.
Today’s announcement comes less than a week after Sunrun took its first steps towards IPO, filing S-1 registration with the SEC.