Sunnova Prices First Project Hestia Securitization of Residential Solar and Battery Systems.
Sunnova Energy International Inc. (“Sunnova”) (NYSE: NOVA), a leading energy services company, today announced the pricing of its Hestia I securitization, which indirectly benefits from a partial guarantee provided by the U.S. Department of Energy (DOE) Loan Programs Office (LPO).
William J. (John) Berger, founder and Chief Executive Officer of Sunnova, said:
Project Hestia stands as a testament to Sunnova and the DOE’s unwavering commitment to spearheading transformative initiatives that benefit customers, empower communities, and enhance the overall energy landscape in the United States.
“This successful pricing of Project Hestia’s first securitization showcases our continuing dedication to pioneering sustainable, reliable, and cost-effective energy solutions.”
Robert Lane, Chief Financial Officer of Sunnova, said:
With this securitization, Project Hestia has set remarkable benchmarks for both credit ratings and cost of capital within our sector.
“Hestia I achieved a weighted average spread of 197 basis points over the benchmark interest rate through the BB level. With the indirect benefit DOE partial loan guarantee, Sunnova has not only made history by issuing the first residential solar offering with an expected AAA rating for its senior tranche notes but has also, upon close, successfully attracted 20 new fixed income investors to our ABS channel.”
The securitization consists of $219.6 million in indicatively rated AAA (sf)/AA+(sf) 5.75% notes and $24.4 million in indicatively rated BB (sf) 8.25% notes. The notes carry a weighted average life of approximately 5.01 years through the Anticipated Repayment Date in November of 2030 and will have a rated final maturity in December 2050. The notes are not directly guaranteed by DOE.
The notes are backed by a diverse portfolio of rooftop solar systems, battery storage systems, and combined rooftop plus storage systems distributed across more than 20 states and territories. The transaction is expected to close by November 8, 2023, subject to customary closing conditions.
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.
Sunnova was advised by ATLAS SP Partners and Citi on the transaction. Baker Botts acted as legal advisor to Sunnova and Kramer Levin acted as legal advisor to the financial advisors.
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Sunnova Prices First Project Hestia Securitization of Residential Solar and Battery Systems. source
