Deal Description: Sunnova Energy International Inc. (“Sunnova”), a leading U.S. residential solar and energy storage service provider, closed its securitization of leases and power purchase agreements by a wholly owned subsidiary of approximately $254.7 million aggregate principal amount of asset-backed notes in two tranches on November 30, 2020. The two-tranche securitization includes $209.1 million in A- (sf) rated 2.73% notes and $45.6 million in subordinated BB- (sf) rated 5.47% notes.
The notes are backed by a diverse portfolio of over 13,000 solar rooftop systems distributed across 19 states, Guam, Puerto Rico, and the Commonwealth of the Northern Mariana Islands. The notes are secured by, and payable from the cash flow generated by, the membership interests in wholly owned, direct subsidiaries of the issuing entity and the sale of renewable energy credits. Each such subsidiary owns a managing member interest in a project company, two of which are tax equity partnerships.
Baker Botts L.L.P. represented Sunnova in the transaction.
In-house Counsel to Sunnova Energy International: Walter A. Baker and Margaret C. Fitzgerald
Value: $254.7 million
Baker Botts Lawyers/Office Involved:
Corporate/Finance: Travis Wofford (Partner, Houston); Martin Toulouse (Partner, New York); Natasha Khan (Partner, Houston); Sarah Dodson (Senior Associate, Houston); Josh Espinosa (Associate, Dallas); Gita Pathak (Associate, Houston); Catherine Ellis (Associate, Houston); Shumaila Dhuka (Associate, Houston); Daniel Jung (Associate, Houston)
ERISA: Krisa Benskin (Special Counsel, Houston)
Renewable Energy Regulatory: Emil Barth (Special Counsel, Washington)
For more information, please see Sunnova’s news release by clicking here.
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