Sunrun Prices $584M Securitization with Improved 220bp Spread
Sunrun priced a $584 million securitization of solar leases and PPAs, issuing $234 million of Class A-1 notes at a 220 basis-point spread and $350 million of Class A-2 notes at 6.30%. The transaction covers 38,706 systems across 76 utility territories with a 79.3% advance rate and FICO of 744.
1. Transaction Structure and Pricing
Sunrun structured the $584 million securitization into two classes of A-rated notes and one class of BB-rated notes. The $234 million Class A-1 tranche was publicly marketed at a 220 basis-point spread, while the $350 million Class A-2 tranche was privately placed at a 6.30% coupon, with an expected weighted average life of 6.88 years.
2. Credit Spread Improvement
The 220 basis-point spread on the Class A-1 notes marks a 20 basis-point improvement versus Sunrun’s September and July 2025 securitizations, which priced at 240 basis points. This tightening reflects stronger investor demand and enhanced confidence in the company’s solar and storage asset performance.
3. Portfolio Collateral Details
The notes are backed by a portfolio of 38,706 home solar systems across 76 utility service territories in 19 states, Washington D.C., and Puerto Rico. The pool carries a 79.3% advance rate on present value and an average customer FICO score of 744, with maturities running through August 2061.