Sunnova Launches Green Financing Framework, Offers $ 212 Million Securitization of Residential Solar Power and Battery Loan Agreements
HOUSTON – (COMMERCIAL THREAD) – Sunnova Energy International Inc. (âSunnovaâ) (NYSE: NOVA), today announced the pricing of its fourth solar loan securitization and tenth residential solar securitization. Sunnova also announced the launch of a new green finance framework (the âGreen Finance Frameworkâ) which will guide Sunnova’s investments in new and existing projects that have environmental benefits.
âThis securitization, priced at a blended coupon of 1.82%, represents Sunnova’s highest rated and cheapest equity issue to date,â said Robert Lane, executive vice president, chief financial officer of Sunnova. âThis is the second transaction structured to align asset debt service with asset cash flow, increase free cash flow for Sunnova and accelerate the issuance of a maturing green bond.
âThrough our energy services, we strive to accelerate our ESG impact and create shared value for our customers, employees, communities, partners and investors,â said Kelsey Hultberg, Executive Vice President and Chief of Staff of Sunnova. âIn line with our commitment to sustainable business practices and the promotion of corporate social responsibility within the solar industry, we are proud to launch our green finance framework which will guide the issuance of our green finance. ”
The Green Financing Framework emphasizes Sunnova’s commitment to environmental sustainability, enables Sunnova to demonstrate its credentials to investors seeking renewable energy investment opportunities assessed by third parties, and will diversify Sunnova’s access to capital. The Green Funding Framework was subject to an independent external evaluation by CICERO Shades of Green, which rated the Green Funding Framework as dark green, its highest level. Under the Green Funding Framework, funding will need to meet internal eligibility criteria that align with the International Capital Market Association’s Green Bond Principles (âGreen Bond Principlesâ), and the net proceeds of everything. funding can be used for capital investment, research, development, acquisition, manufacture, distribution, maintenance and operation of solar energy and storage systems and enabling technologies for solar energy storage and optimization . The green financing framework and the second opinion of CICERO Shades of Green can be consulted here.
Mr. Lane added, âSunnova’s high-quality residential solar assets and superior customer service continue to generate some of the highest capital costs in the industry. On this 2021-B transaction, we achieved spreads of 80 bps and 120 bps for the AA- and A- tranches, respectively, against the benchmark interest rate. This represents Sunnova’s best price to date for a securitization of solar loan and storage assets. ”
The securitization consists of $ 106.2 million in notes rated AA- (sf) at 1.62% and $ 106.2 million in notes rated A- (sf) at 2.01%. The Notes have a weighted average term to the early redemption date of July 20, 2028, approximately 5.07 years, and have a final maturity of July 20, 2048.
The ratings are backed by a diverse portfolio of 6,435 rooftop solar systems across 19 states and territories. The weighted average FICO score of related clients at the time of origination is 735. The transaction is expected to close by July 28, 2021, subject to customary closing conditions.
Credit Suisse was the sole structuring agent and bookrunner for the securitization, and Popular Securities acted as co-manager.
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 as 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 securities, nor does it constitute an offer, solicitation of an offer or sale of securities in any jurisdiction in which such an offer, solicitation or sale would be illegal. . Any offer of tickets will be made only by way of a private offer circular.
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 the future financial or operational performance of Sunnova. In some cases, you may identify forward-looking statements because they contain words such as “may”, “will”, “should”, “expect”, “expect”, “anticipate”, “go to”, ” could “,” intend “,” target “,” plan “,” consider “,” believe “,” estimate “,” predict “,” potential “or” continue “or the negative of these words or d ‘other words or similar expressions relating to Sunnova’s expectations, strategy, priorities, plans or intentions. Forward-looking statements contained in this press release include, without limitation, statements regarding expectations relating to the Offer, including the close of the Offer, the use of proceeds from the Offer and the use of cash flows. excess collateral cash, as well as Sunnova’s debt service, cash flow, future financing plans and priorities, goals and strategies. 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, our results of operations and financial condition, our competition, fluctuations in the solar energy and residential construction markets, the availability of capital, our capacity to attract and retain dealers and customers and our dealership and strategic partner relationships. Forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those described in more detail in documents filed by Sunnova with the Securities and Exchange Commission, including our annual report on Form 10-K for the fiscal year ended December 31, 2020 and our quarterly report on Form 10-Q for the quarter ended March 31, 2021. The forward-looking statements contained in this press release are based on information available to Sunnova as of the date hereof, and Sunnova disclaims any obligation to update any statements, except as required by law.
Sunnova Energy International Inc. (NYSE: NOVA) is a leading provider of residential energy storage and solar energy services with customers throughout the United States and its territories. Sunnova’s goal is to be the clean, affordable and reliable source of energy with a simple mission: to fuel energy independence so that homeowners have the freedom to live uninterrupted livesÂ®.