Sunnova Prices First Project Hestia Securitization of Residential Solar and Battery Systems
October 19 2023 - 4:05PM
Business Wire
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).
“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,” said William J.
(John) Berger, founder and Chief Executive Officer of Sunnova.
“This successful pricing of Project Hestia’s first securitization
showcases our continuing dedication to pioneering sustainable,
reliable, and cost-effective energy solutions.”
“With this securitization, Project Hestia has set remarkable
benchmarks for both credit ratings and cost of capital within our
sector,” said Robert Lane, Chief Financial Officer of Sunnova.
“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.
FORWARD-LOOKING STATEMENTS This press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act 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,” “expects,” “plans,” “anticipates,” “going to,” “could,”
“intends,” “target,” “projects,” “contemplates,” “believes,”
“estimates,” “predicts,” “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 press release include, but are
not limited to, statements regarding the expectations in connection
with the offering, the benefits of the Hestia program, the size and
terms of the offering, the credit ratings of the notes, and the
anticipated closing date of the offering. 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 supply chain uncertainties, results of
operations and financial position, Sunnova’s competition, changes
in regulations applicable to Sunnova’s business, fluctuations in
the solar and home-building markets, availability of capital and
Sunnova’s ability to attract and retain dealers and customers and
manage its dealer and strategic partner relationships. The
forward-looking statements contained in this press release are also
subject to other risks and uncertainties, including those more
fully described in Sunnova’s filings with the U.S. Securities and
Exchange Commission, including Sunnova’s annual report on Form 10-K
for the year ended December 31, 2022 and subsequent quarterly
reports on Form 10-Q. The forward-looking statements in this press
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.
About Sunnova Sunnova Energy International Inc. (NYSE:
NOVA) is an industry-leading energy services company focused on
making clean energy more accessible, reliable, and affordable for
homeowners and businesses. Through its adaptive energy platform,
Sunnova provides a better energy service at a better price to
deliver its mission of powering energy independence. For more
information, visit www.sunnova.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20231019179282/en/
Sunnova Media Contact: Srishti Ahuja Tandon
Srishti.ahujatandon@sunnova.com Sunnova Investor Contact:
Rodney McMahan 877-770-5211 IR@sunnova.com
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