SunPower, Hannon JV pockets USD 400m from PV asset backed notes

SunStrong Capital Holdings, a new joint venture of SunPower Corp (NASDAQ:SPWR) and Hannon Armstrong Sustainable Infrastructure Capital Inc (NYSE: HASI), has raised USD 400 million (EUR 351.3m) from using solar asset backed securities.

The raised funds will be allocated mainly to refinance SunStrong’s existing liabilities related to its residential lease portfolio, the joint venture partners announced on Wednesday. The notes were issued through a special purpose entity and indirect subsidiary of SunStrong and are secured by the cash flow from managing member interests that the special entity has in indirectly owned subsidiary project companies, which in turn hold more than 37,500 residential solar leases originated by SunPower.

The solar asset backed notes Series 2018-1 bear an annual interest of 5.68% and mature in November 2048. They are expected to be repaid in November 2028.

SunPower’s executive vice president and chief financial officer Manavendra Sial said that SunStrong, formed earlier this month, was set up with the aim to sully deconsolidated the solar group’s leveraged residential lease portfolio. The move will allow SunPower to improve its net debt position and cut interest expense, he added.

SunStrong's task will be to acquire, own, manage, operate, finance and maintain a portfolio of residential solar systems.

(USD 1.0 = EUR 0.878)

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