Sunrun, Investec close USD 195 million in financing for residential solar PV projects in the U.S.

Sunrun will use the funds to help more Americans install solar PV systems on their homes
Sunrun will use the funds to help more Americans install solar PV systems on their homes

Sunrun Inc. (San Francisco, California, US), the largest dedicated residential solar company in the U.S., Investec Inc. and Investec Bank plc ("Investec", New York) on January 8th, 2015 announced the close of USD 195 million of senior credit facilities to support the growth of Sunrun's residential solar photovoltaic (PV) business.

Sunrun will use the funds to help more Americans install solar PV systems on their homes and reduce their electricity costs. This is Sunrun's first syndicated financing and signifies a new source of capital for the company, Sunrun emphasizes in a press release.

"This financing significantly reduces Sunrun's cost of capital, which will help us lower costs for homeowners and also positions the company well for continued growth," said Jason Cavaliere, VP of Project Finance at Sunrun.

"The strength of our project portfolio and operating history, among other factors, allowed us to achieve a lower interest rate and longer tenor than any publicly announced residential solar backleverage facility."

The non-recourse financing will be issued to Sunrun under a senior/subordinated credit structure. The senior facilities amount to USD 171 million, while the subordinated facility amounts to USD 24 million. As sole bookrunner, Investec assembled a syndicate of lenders to provide the senior facilities.

"Sunrun trusted our distribution capabilities and we were able to deliver a syndicate of lenders, which included several first-time lenders to the U.S. residential solar market. The financing was met with strong interest and was oversubscribed," comments Ralph Cho, Co-Head of Power at Investec.

 

2015-01-09 | Courtesy: Sunrun | solarserver.com © Heindl Server GmbH

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