Oaktree Capital reported to buy $400 million of Sunnova debt

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Sunnova Energy International, a residential solar installer, issued a going concern warning earlier this month, signaling that the company has reason to believe it may be out of business within a year.

Roughly $400 million of Sunnova’s $8.5 billion in debt was reportedly bought up by Oaktree Capital Management in purchases made recently. Oaktree is a global investment firm specializing in alternative investments. The firm reports that as of the end of 2024 it had $202 billion in assets under management.

Paul Mathews was named president and CEO recently when the company’s founder, William Berger, stepped down from the position. As Sunnova prepares for negotiations with creditors, the purchases give Oaktree a significant role in the discussions. The purchases were reported by Bloomberg from people familiar with the matter.

Following the company’s fourth quarter earnings and announcement that its cash flow is not sufficient to meet obligations and fund operations, Sunnova’s stock plunged over 70%. Last week, The Wall Street Journal reported that Sunnova is preparing to meet with creditors to find ways to cut its $8.5 billion in debt, either through filing for bankruptcy or through other ways, such as swapping some near-term bonds into equity.

 

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