Chadbourne & Parke LLP advised a group of lenders, arranged by Investec Bank plc, on a $250 million financing for Sunrun Inc. to support the company's continued expansion in the residential solar sector.
Sunrun says it will use the funding to install clean, affordable solar systems on American homes and reduce customers' electricity bills.
This nonrecourse back-leverage financing is secured by the cashflows available to Sunrun after distributions to its tax equity investors. The law firm notes that the financing includes two tranches: (1) a senior aggregation facility with an advance rate of 65% and an initial interest rate of L+250 and (2) a subordinated tranche with a cumulative advance rate of 75% and an initial interest rate of L+500 bps. All facilities mature in December 2020.
This financing was handled by partners Rohit Chaudhry and Eli Katz and associates Noah Pollak, Eric Kamerman, Ana Vucetic and Diego Gallegos.