Sunnova Closes Securitization of Residential Solar Loan Agreements
June 22 2020 - 7:00AM
Business Wire
Sunnova Energy International Inc. (“Sunnova”) (NYSE: NOVA), a
leading U.S. residential solar and energy storage service provider,
announced today it has closed its second solar-loan securitization
and sixth residential solar securitization overall.
“Once again, the secured financing market has recognized the
value and importance of providing superior customer service for
solar and storage offerings,” said William J. (John) Berger, Chief
Executive Officer of Sunnova. “Despite the current dislocation in
the structured finance markets, we were still able to achieve an
implied blended yield of approximately 3.75% and an overall advance
rate of approximately 87.5% on a loan-to-value basis. The
combination of our proven track record and excellent payment
performance on prior securitizations, together with our
well-capitalized corporate balance sheet, strong recurring
cashflows and focus on providing best-in-class customer service,
resulted in extremely strong demand and pricing for this
securitization. We do anticipate further improvements in the solar
securitization cost of debt as the market continues to heal and
recognize the payment performance results through this economic and
health crisis. This latest transaction will help us add yet another
chapter to our growth story as we continue to power energy
independence for our customers.”
The two-tranche securitization includes $135.850 million in A-
(sf) rated 2.98% notes and $22.642 million in subordinated BB- (sf)
rated 7.25% notes.
The notes are backed by a diverse portfolio of over 5,000 solar
loans distributed across 17 states and territories including Puerto
Rico and the Commonwealth of the Northern Mariana Islands. The
weighted average customer FICO score of the related customers at
the time of origination is 735. Sunnova intends to use the proceeds
from the sale of the notes for the payment of expenses related to
the offering of the notes, the repayment of one or more currently
existing financing arrangements of Sunnova’s subsidiaries and for
general corporate purposes.
Credit Suisse was the sole structuring agent and bookrunner for
the securitization.
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™.
For more information, visit www.sunnova.com, follow us on
Twitter @Sunnova_Solar and connect with us on Facebook.
DISCLAIMERS
The Notes have not been and will not be registered under the
Securities Act of 1933, as amended, or applicable state securities
laws, and may not be offered or sold in the United States except
pursuant to an exemption from the registration requirements of the
Securities Act and applicable state securities laws.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, and shall not
constitute an offer, solicitation of an offer or sale of any
securities in any state 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 our future growth, asset performance, service
levels, financial condition and cashflows, the solar securitization
market, cost of debt, and payment performance. 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 disease 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 10-K for the year ended December 31, 2019 and our
Quarterly Report on 10-Q for the quarter ended March 31, 2020. 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.
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INVESTOR & ANALYST CONTACT Rodney McMahan Sunnova
Energy International Inc. Rodney.McMahan@sunnova.com (281)
971-3323
PRESS & MEDIA CONTACT Kelsey Hultberg Sunnova Energy
International Inc. Kelsey.Hultberg@sunnova.com
Sunnova Energy (NYSE:NOVA)
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