Sunnova Energy International priced its fourth solar loan securitization and its tenth residential solar securitization.
The company also launched a green financing framework intended to guide its investments in new and existing projects that have environmental benefits.
The securitization consists of $106.2 million in AA- (sf) rated 1.62% notes and $106.2 million in A- (sf) rated 2.01% notes. The notes carry a weighted average life to the Anticipated Repayment Date of July 20, 2028, approximately 5.07 years, and have a final maturity of July 20, 2048.
The notes are backed by a portfolio of 6,435 solar rooftop systems distributed across 19 states and territories. The weighted average customer FICO score of the related customers at the time of origination was 735. The transaction is expected to close by July 28, subject to customary closing conditions.
On this 2021-B transaction, the company said it achieved spreads of 80 basis points (bps) and 120 bps for the AA- and the A- tranches, respectively, over the interest rate benchmark. The company said this represents its best pricing to date for a solar and storage loan asset securitization.
Credit Suisse was the sole structuring agent and bookrunner for the securitization, and Popular Securities acted as co-manager.
The Green Financing Framework is expected to allow Sunnova to demonstrate its qualifications to investors who seek third-party-assessed renewable energy investment opportunities, and will diversify Sunnova’s access to capital.
Under the framework, financings will be required to meet internal eligibility criteria that align with the International Capital Market Association’s Green Bond Principles. Net proceeds from any financings may be used for the capital investment, research, development, acquisition, manufacturing, distribution, maintenance, and operation of solar energy and storage systems and enabling technologies for solar energy storage and optimization.
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