Sunrun Replaces $250 Million Recourse Lending Facility with New Upsized $425 Million Facility to Support Continued Growth at Enhanced Terms

Cost of new facility unchanged while the asset borrowing base expanded, improving financing terms for inventory and project backlogs, supporting scale of combined company and continued growth trajectory

PVTIME – Sunrun (Nasdaq: RUN), the nation’s leading home solar, battery storage and energy services company, today announced it has retired it’s $250 million recourse lending facility and arranged a larger $425 million facility at enhanced terms and longer tenor than the company’s prior term extensions.

“We are pleased to increase the size of our recourse lending facility, to support our continued growth while also enhancing terms to reflect the strength of our asset base and underlying business,” said Tom vonReichbauer, Sunrun’s Chief Financial Officer. “Our continued strong execution in the capital markets allows us to be well-positioned to capitalize on growth opportunities and to deliver value to our customers and financial partners.”

The new $425 million recourse lending facility matures in January 2025, providing a longer tenor than the company’s prior recourse lending facility extension of 2 years. Concurrent with funding and closing, Sunrun repaid the existing $250 million recourse lending facility. The new recourse lending facility reflects improved terms, including a higher valuation for operating assets (now using a 5% discount rate), in conjunction with an increased advance rate against Sunrun’s project backlog. In addition, the new facility expands the borrowing base to support more efficient inventory financing, also at a higher advance rate, while maintaining the same borrowing costs.

Initial commitments total $425 million from three new and six existing lenders. The new facility also contains an accordion feature, allowing expansion of the facility to accommodate the growth of the business over time, subject to certain conditions and additional capital commitments. The facility contains certain covenants that are customary for financings of this type. Additional details on the facility can be found in the company’s filings with the SEC on Form 8-K.