Disclaimer

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 Prices Securitization of Residential Solar and Battery Systems

June 14, 2021

HOUSTON--(BUSINESS WIRE)-- Sunnova Energy International Inc. (“Sunnova”) (NYSE: NOVA), today announced the pricing of its latest securitization of leases and power purchases agreements.

“We are pleased to report the pricing of a ground-breaking securitization of third party owned (“TPO”) solar and storage assets,” said Robert Lane, Chief Financial Officer of Sunnova. “We were able to achieve our tightest spread over the interest rate benchmark to date for a TPO solar and storage asset securitization, reflecting the high-quality assets in the pool. Further, this is the solar sector’s first ever securitization re-financing collateral from a pre-existing securitization. Finally, we have structured this transaction to align the debt service of the assets more closely with their cash flows, which in turn allows us to bring more cash to the corporate level and bring us closer to our goal of issuing a bullet-maturity green bond.”

The single-tranche securitization consists of $319.0 million in A- (sf) rated 2.58% notes at a 76.4% advance rate, representing a spread to the benchmark swap rate of 140 bps. The A- rated notes carry a weighted average life of approximately 7.46 years through the Anticipated Repayment Date of April 30, 2031 and have a final maturity of April 28, 2056.

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 20,900 solar rooftop systems distributed across 18 states, Guam, Puerto Rico, and Northern Mariana Islands. The weighted average customer FICO score of the related customers at the time of origination is approximately 740. Sunnova intends to use the proceeds from the sale of the notes for the repayment of one or more currently existing financing arrangements of Sunnova’s subsidiaries, including the voluntary prepayment of all outstanding 4.94% Series 2017-1 Class A solar asset-backed notes, 6.00% Series 2017-1 Class B solar asset-backed notes and 8.00% Series 2017-1 solar asset-backed notes with a maturity date of September 2049 pursuant to the Indenture, dated as of April 19, 2017, among Helios Issuer, LLC, as issuer, and Wells Fargo Bank, National Association, as trustee, the payment of expenses related to the offering of the notes, and for general corporate purposes. The transaction is expected to close by June 17, 2021, subject to customary closing conditions.

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

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.

FORWARD-LOOKING STATEMENTS

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 the expectations in connection with the offering, including the closing thereof, the use of proceeds from the offering and use of excess cashflows from the collateral, as well as debt service, cash flows, and future financing plans. 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, 2020 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021. 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.

ABOUT SUNNOVA

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

INVESTOR RELATIONS:

Rodney McMahan, Vice President Investor Relations
IR@sunnova.com
281.971.3323

MEDIA CONTACT

Alina Eprimian, Media Relations Manager
Alina.eprimian@sunnova.com

Source: Sunnova Energy International Inc.