Sunrun leases solar systems to homeowners. They priced a $365m securitisation to fund some of their solar assets.

The assets are 21,281 agreements associated with residential solar power systems.

The securitization was structured in three tranches – a $75m A+ (KBRA) 4.8 year WAL Class A-1 note, a $290.4m A+ (KBRA) 7.0 year WAL Class A-2 note, and a retained $37.4m BB (KBRA) Class B note.

The public notes were oversubscribed – with a 210bp spread on the Class A-1 notes and a 240bps spread on the Class A-2 notes.

The deal was structured by RBC Capital Markets. The joint bookrunners were Bank of America, Citigroup, Deutsche Bank and JP Morgan. This is Sunrun’s twelfth securitization transaction.

This is a sector in which we expect to see more private credit involvement over the next 24 months.