Priya Patel
TLDR: Sunnova Launches $435 Million in Solar Panel Finance ABS
Key Points:
- Sunnova Energy is raising $453 million in securitized bonds to fund its business extending loans to homeowners for solar panel systems and energy storage.
- Two trusts, Sunnova Sol VI 2024-1 Issuer and Sunnova Helios XIII, 2024-A, will issue the notes, both with Atlas SP as the main player.
In a move to raise funds for its solar panel financing business, Sunnova Energy is launching $435 million in securitized bonds. These bonds will be sold to investors through two trusts, namely the Sunnova Sol VI Issuer, 2024-1 and the Sunnova Helios XIII, 2024-A, raising $226 million and $227 million, respectively.
Sunnova Sol VI will issue three tranches of notes with ratings from Kroll Bond Rating Agency and a final maturity date of Jan. 30, 2059. The A, B, and C notes pay interest rates of 5.65%, 7.00%, and 9.00%, respectively. The 21,561 leases were extended to customers with prime quality credit profiles, including a weighted average FICO score of 744.
On the other hand, Sunnova Helios XII will raise $227 million, also through three tranches of notes with credit enhancement levels of 39.1%, 26.3%, and 16.2%. Fitch Ratings assigns ratings of AA-, A-, and BBB to the A, B, and C notes, respectively. Notably, the deal will include 2.2% of home improvement loans.
Both securitization deals are backed by loans extended to prime borrowers, with strong credit profiles and recovery incentives associated with the solar energy systems. The involvement of key players like Atlas SP, RBC Capital Markets, ING, and SMBC Nikko highlights the importance of these transactions in the market.
