Sunnova Prices Securitization of Residential Solar and Battery Systems
June 14 2021 - 5:55AM
Business Wire
Sunnova Energy International Inc. (“Sunnova”) (NYSE: NOVA),
today announced the pricing of its latest securitization of leases
and power purchases agreements.
“We are pleased to report the pricing of a ground-breaking
securitization of third party owned (“TPO”) solar and storage
assets,” said Robert Lane, Chief Financial Officer of Sunnova. “We
were able to achieve our tightest spread over the interest rate
benchmark to date for a TPO solar and storage asset securitization,
reflecting the high-quality assets in the pool. Further, this is
the solar sector’s first ever securitization re-financing
collateral from a pre-existing securitization. Finally, we have
structured this transaction to align the debt service of the assets
more closely with their cash flows, which in turn allows us to
bring more cash to the corporate level and bring us closer to our
goal of issuing a bullet-maturity green bond.”
The single-tranche securitization consists of $319.0 million in
A- (sf) rated 2.58% notes at a 76.4% advance rate, representing a
spread to the benchmark swap rate of 140 bps. The A- rated notes
carry a weighted average life of approximately 7.46 years through
the Anticipated Repayment Date of April 30, 2031 and have a final
maturity of April 28, 2056.
Advance rates are calculated relative to the securitization
share of the aggregate discounted solar asset balance.
The notes are backed by a diverse portfolio of over 20,900 solar
rooftop systems distributed across 18 states, Guam, Puerto Rico,
and Northern Mariana Islands. The weighted average customer FICO
score of the related customers at the time of origination is
approximately 740. Sunnova intends to use the proceeds from the
sale of the notes for the repayment of one or more currently
existing financing arrangements of Sunnova’s subsidiaries,
including the voluntary prepayment of all outstanding 4.94% Series
2017-1 Class A solar asset-backed notes, 6.00% Series 2017-1 Class
B solar asset-backed notes and 8.00% Series 2017-1 solar
asset-backed notes with a maturity date of September 2049 pursuant
to the Indenture, dated as of April 19, 2017, among Helios Issuer,
LLC, as issuer, and Wells Fargo Bank, National Association, as
trustee, the payment of expenses related to the offering of the
notes, and for general corporate purposes. The transaction is
expected to close by June 17, 2021, subject to customary closing
conditions.
Credit Suisse was the sole structuring agent and bookrunner for
the securitization.
The notes have not been and will not be registered under the
Securities Act of 1933, as amended, or applicable state securities
laws, and, unless so registered, such securities may not be offered
or sold in the United States except pursuant to an exemption from,
or in a transaction not subject to, the registration requirements
of the Securities Act and applicable state securities laws.
This press release is neither an offer to sell nor a
solicitation of an offer to buy any securities, nor shall it
constitute an offer, solicitation of an offer or sale of any
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful. Any offer of the notes will be made only by
means of a private offering circular.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements generally relate to future
events or Sunnova's future financial or operating performance. In
some cases, you can identify forward-looking statements because
they contain words such as "may," "will," "should," "expect,"
"plan," "anticipate," "going to," "could," "intend," "target,"
"project," "contemplates," "believe," "estimate," "predict,"
"potential" or "continue" or the negative of these words or other
similar terms or expressions that concern Sunnova's expectations,
strategy, priorities, plans or intentions. Forward-looking
statements in this release include, but are not limited to,
statements regarding the expectations in connection with the
offering, including the closing thereof, the use of proceeds from
the offering and use of excess cashflows from the collateral, as
well as debt service, cash flows, and future financing plans.
Sunnova's expectations and beliefs regarding these matters may not
materialize, and actual results in future periods are subject to
risks and uncertainties that could cause actual results to differ
materially from those projected, including risks regarding our
ability to forecast our business due to our limited operating
history, the effects of the coronavirus pandemic on our business
and operations, results of operations and financial position, our
competition, fluctuations in the solar and home-building markets,
availability of capital, our ability to attract and retain dealers
and customers and our dealer and strategic partner relationships.
The forward-looking statements contained in this release are also
subject to other risks and uncertainties, including those more
fully described in Sunnova's filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K for
the year ended December 31, 2020 and our Quarterly Report on Form
10-Q for the quarter ended March 31, 2021. The forward-looking
statements in this release are based on information available to
Sunnova as of the date hereof, and Sunnova disclaims any obligation
to update any forward-looking statements, except as required by
law.
ABOUT SUNNOVA
Sunnova Energy International Inc. (NYSE: NOVA) is a leading
residential solar and energy storage service provider with
customers across the U.S. and its territories. Sunnova’s goal is to
be the source of clean, affordable and reliable energy with a
simple mission: to power energy independence so that homeowners
have the freedom to live life uninterrupted®.
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INVESTOR RELATIONS:
Rodney McMahan, Vice President Investor Relations IR@sunnova.com
281.971.3323
MEDIA CONTACT
Alina Eprimian, Media Relations Manager
Alina.eprimian@sunnova.com
Sunnova Energy (NYSE:NOVA)
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