US residential solar installer Sunrun has priced a securitisation of leases and power purchase agreements worth US$510 million.
This takes the company’s non-recourse debt capital raised in the third quarter of 2025 at above US$1.5 billion.
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According to the company, the securitisation comprises two A-rated tranches of equal footing – pari passu – totalling US$510 million and a retained BB-rated tranche. The US$260 million Class A-1 Notes were publicly marketed, while the US$250 million Class A-2 Notes were privately placed.
The Class A Notes, priced with a 6.15% coupon, represent a 69% advance rate on ADSAB and carry an expected average life of 6.9 years, with repayment anticipated in January 2033 and final maturity in 2061. This marks the company’s fifteenth such transaction since 2015, and its fifth issuance so far in 2025.
“Inclusive of this transaction and a privately placed securitisation in August, Sunrun will have raised more than US$1.5 billion in senior and subordinated non-recourse debt financings in Q3, and we look forward to continuing to utilise our diverse financing channels to fuel profitable growth,” said Danny Abajian, Sunrun’s chief financial officer.
Additionally, Sunrun has secured a commitment from a global asset manager for additional subordinated non-recourse financing tied to retained Class B Notes, boosting its cumulative advance rate. The notes are backed by 29,929 systems across 19 states, Washington DC and Puerto Rico, with a weighted average customer FICO of 743. Closing is expected by 23 September 2025.
Deutsche Bank acted as sole structuring agent and joint bookrunner alongside JP Morgan, Morgan Stanley, MUFG and RBC, with Atlas SP, Citi and KeyBanc as co-managers.
In August 2025, Sunrun completed its fourth securitisation of the year, a private deal comprising a US$441 million A-rated loan and a retained BB-rated loan, alongside subordinated non-recourse debt from a global asset manager. The previous month, the company priced a US$431 million public securitisation with a 240 basis points (bps) spread and 6.374% yield.
Recently, Sunrun reported Q2 2025 revenue of US$569.3 million, up 9% year-on-year, driven by an 18% rise in customer agreements and incentives to US$458 million, while product sales fell 18% to US$111.3 million. The company added 28,823 subscribers, lifting its base to over 940,000, up 14% year-on-year. Storage installations grew 48% to 392MWh, with solar PV additions up 18% to 227MW.
