On Tuesday, Sunrun announced that it had closed on a $220 million revolving credit facility, a $23 million subordinated facility and a $7 million letter of credit facility, all of which will support deployment of residential solar projects in the United States.
The credit facilities are all secured by cash flows from Sunruns power purchase agreements with homeowners, less certain expenses. In a filing with financial regulators, Sunrun notes that cash flows from PV systems in Nevada are excluded from the borrowing base. The company also reserves the right to alter the credit facilities if policies in Nevada change.
After further clarity in regards to Nevada is achieved, we expect to work with the lenders to amend the facilities to provide some level of financing for these assets, notes Sunrun in an SEC filing.
Investec arranged the lending syndicate for the deal. This is Sunruns second syndicated financing over the last year.
Mercom Capital noted that the credit facilities are an attractive deal for Sunrun. It’s a good deal anytime you can borrow at attractive rates on a non-recourse basis, notes Mercom Capital CEO Raj Prabhu.