Sunrun Inc. Secures $584 Million in Latest Securitization of Solar and Storage Assets

In a significant move to bolster its financial position, Sunrun Inc. (Nasdaq: RUN), the largest provider of residential solar and home battery storage in the U.S., announced the pricing of a $584 million securitization of leases and power purchase agreements. This marks Sunrun's sixteenth securitization since 2015 and its inaugural issuance of 2026, reflecting the company's continued ability to access capital markets effectively.

Danny Abajian, Chief Financial Officer of Sunrun, emphasized the importance of this transaction, stating, “This $584 million securitization transaction further exhibits Sunrun’s ability to access capital at scale and at improving terms.” The latest securitization saw A-1 notes priced at a 220 basis point credit spread, a notable 20 basis point improvement from the company's previous transactions in 2025. This improvement signals a robust demand for Sunrun's high-quality solar and storage assets.

The securitization was structured with two classes of A-rated notes: the Class A-1 Notes and Class A-2 Notes, along with a class of BB-rated notes, known as Class B Notes, which were retained by the company. The Class A-1 Notes, valued at $234 million, were marketed publicly, while the $350 million Class A-2 Notes were privately placed. Both classes were priced with a coupon of 6.30%, reflecting a spread of 220 basis points and a yield of 6.353%.

The initial balance of the Class A Notes indicates a 79.3% advance rate on the Securitization Share of ADSAB, calculated using a 7.5% discount rate. The Class A Notes have an expected weighted average life of 6.88 years, with an Anticipated Repayment Date set for August 1, 2033, and a final maturity date of August 1, 2061.

This securitization represents a positive trend for Sunrun, showcasing improved credit spreads compared to its previous securitizations in September and July of 2025, which priced with a spread of 240 basis points. This improvement not only reflects the increasing confidence of investors in Sunrun's business model but also highlights the company's successful execution of its financing strategy.

In line with its prior transactions, Sunrun anticipates obtaining additional subordinated subsidiary-level non-recourse financing secured in part by the distributions from the retained Class B Notes. This strategy is expected to enhance the cumulative advance rate secured by the company, providing further financial flexibility for future growth.

The notes issued in this securitization are backed by a well-diversified portfolio comprising 38,706 systems distributed across 76 utility service territories in 19 states, Washington D.C., and Puerto Rico. The portfolio's quality is underscored by a weighted average customer FICO score of 744, indicating a strong credit profile among its customer base.

The transaction is expected to close in early May 2026, with Atlas SP acting as the sole structuring agent and joint bookrunner alongside BofA Securities, MUFG, and Truist Securities. ING also served as a co-manager for this significant securitization.

Sunrun's latest securitization marks a milestone in the company's ongoing efforts to strengthen its financial foundation while continuing to meet the increasing demand for residential solar and storage solutions. With improving credit spreads and a strong asset portfolio, Sunrun is well-positioned to navigate the evolving landscape of the renewable energy market. Investors and analysts alike will be watching closely as the company seeks to leverage this transaction for future growth and innovation in sustainable energy.