Our mission as a company is to power energy independence, and we achieve this mission when we conduct ourselves ethically and transparently. To that end, we condemn all human rights abuses and the use of forced labor in the Xinjiang region and anywhere else in the world, and we stand committed to ensuring that all our vendors engage in ethical sourcing. We require transparency in our supply chain, and we work closely with our vendors to ensure they satisfy our vendor code of conduct." - John Berger, CEO of Sunnova

As a matter of ethical business practices and sourcing, Sunnova requires each company on its Approved Vendor List (“AVL”) to:

  • certify that they (and their suppliers) practice ethical sourcing;
  • certify that they do not engage in human rights abuses in the sourcing and manufacture of the products they sell to Sunnova; and
  • certify that they do not use labor or goods from Xinjiang in their supply chain.

Sunnova will also continue to engage its vendors in discussions and to review available data regarding forced labor in the Xinjiang region to ensure that its supply chain is free from human rights abuses.

News Details

Sunnova Closes Securitization of Residential Solar Systems and Primary and Secondary Offering of Shares of Common Stock

December 3, 2020

HOUSTON--(BUSINESS WIRE)-- Sunnova Energy International Inc. (“Sunnova”) (NYSE: NOVA), one of the leading U.S. residential solar and storage service providers, announced today it closed its securitization of leases and power purchase agreements on November 30, 2020.

“We are pleased to report the closing of our most successful asset backed securitization to date,“ said William J. (John) Berger, Chief Executive Officer of Sunnova. “Being able to deliver a securitization with the highest combined advance rate and lowest blended yield for a securitization in company history is a direct result of our proven track record, well-capitalized corporate balance sheet, strong recurring long-term contracted cashflows and focus on providing best-in-class customer service. This securitization further suggests a discount rate of PV4 on our Net Contracted Customer Value as it drives our all-in cost of capital even lower, further bolsters our cashflows and positions Sunnova to continue its exceptional growth into the new year and beyond.”

The two-tranche securitization includes $209.1 million in A- (sf) rated 2.73% notes at a 78.0% advance rate and $45.6 million in subordinated BB- (sf) rated 5.47% notes at a 17.0% advance rate. Advance rates are calculated relative to the securitization share of the aggregate discounted solar asset balance.

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 weighted average customer FICO score of the related customers at the time of origination is 741. Sunnova used the proceeds from the sale of the notes for the repayment of one or more currently existing financing arrangements of Sunnova’s subsidiaries and intends to use the remaining proceeds for the payment of expenses related to the offering of the notes and for general corporate purposes.

Credit Suisse was the sole structuring agent and bookrunner for the securitization.

In addition, Sunnova announced today the closing of its underwritten public offering (the “equity offering”) of 7,000,000 shares of Sunnova’s common stock, par value $0.0001 per share (the “common stock”), which consists of 3,500,000 shares of common stock offered by Sunnova and 3,500,000 shares of common stock offered by a fund affiliated with Newlight Partners (the “Selling Stockholder”) at a price to the public of $37.00 per share. The equity offering included a 30-day option for the underwriters to purchase an additional 525,000 shares of common stock from each of Sunnova and the Selling Stockholder, which the underwriters exercised in connection with the closing of the equity offering.

The net proceeds from the sale of shares of the common stock in the equity offering, after deducting underwriting discounts and commissions and offering expenses payable by Sunnova, were approximately $142.6 million. Sunnova did not receive any proceeds from the sale of the shares by the Selling Stockholder in the equity offering. Sunnova intends to use the net proceeds from the equity offering to acquire solar equipment, for the repayment of indebtedness, including to redeem approximately $39.0 million aggregate principal amount of the 9.75% convertible senior notes due 2025 (the “convertible senior notes”), excluding accrued and unpaid interest, and for working capital purposes.

Goldman Sachs & Co. LLC, BofA Securities, J.P. Morgan and Credit Suisse acted as joint book-running managers of the equity offering. Baird, Roth Capital Partners, Simmons Energy | A Division of Piper Sandler, B. Riley Securities, JMP Securities, KeyBanc Capital Markets and Raymond James acted as co-managers.


Sunnova Energy International Inc. (NYSE: NOVA) is a leading residential solar and energy storage service provider with customers across the U.S. states and its territories. Sunnova's goal is to be the leading provider of clean, affordable and reliable energy for consumers, and it operates with a simple mission: to power energy independence so homeowners have the freedom to live life uninterrupted™.

For more information, visit www.sunnova.com, follow us on Twitter @Sunnova_Solar and connect with us on Facebook.


The Notes have not been and will not be registered under the Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, and shall not constitute an offer, solicitation of an offer or sale of any securities in any state in which such offer, solicitation or sale would be unlawful. This press release shall also not constitute a notice of redemption with respect to the convertible senior notes.


This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, 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," "expect," "plan," "anticipate," "going to," "could," "intend," "target," "project," "contemplates," "believe," "estimate," "predict," "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 release include, but are not limited to, statements regarding our future growth, asset performance, service levels, financial condition and cashflows, the solar securitization market, cost of debt, payment performance, ability to fully capitalize on the above market growth we are experiencing, and the use of proceeds from the equity offering, including any redemption of the convertible senior notes. 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 risks regarding our ability to forecast our business due to our limited operating history, the effects of the coronavirus pandemic on our business and operations, results of operations and financial position, our competition, fluctuations in the solar and home-building markets, availability of capital, our ability to attract and retain dealers and customers and our dealer and strategic partner relationships. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in Sunnova's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2019 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020. The forward-looking statements in this 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.

Rodney McMahan
Sunnova Energy International Inc.
(281) 971-3323

Kelsey Hultberg
Sunnova Energy International Inc.

Source: Sunnova Energy International Inc.