Sunrun closes $195m credit facility to support US growth

Sunrun and Investec have closed $195m of senior credit facilities to support the growth of the San Francisco-based company’s residential solar business in 12 US states.

It is Sunrun's first syndicated financing and signifies a new source of capital for the company.

Sunrun will obtain the non-recourse financing to Sunrun under a senior/subordinated credit structure. The senior facilities amount to $171m, while the subordinated facility amounts to $24m.  Investec was sole bookrunner.

"This financing significantly reduces Sunrun's cost of capital, which will help us lower costs for homeowners and also positions the company well for continued growth," says Jason Cavaliere, vice president of project finance at Sunrun.

 "The strength of our project portfolio and operating history, among other factors, allowed us to achieve a lower interest rate and longer tenor than any publicly announced residential solar back leverage facility," he adds.

Sunrun had been mainly a third-party owner of distributed PV assets. Last year, it acquired the residential division of California-based REC Solar, lessening its reliance on a network of downstream sales and installation partners.

Sunrun claims to have deployed more than $2bn in solar systems. It has raised more than $300m in equity capital.