Sunrun secures $303M in funding for solar business
Sunrun on Oct. 20 entered into $303 million in secured credit facilities to fund its rooftop solar business, according to a presentation from the company.
The major part of the financing package is a $234.5 million senior delayed draw term loan and $10 million letter of credit, which were filed as part of the company's 8K filing with the Securities Exchange Commission.
But the package also includes $59 million subordinated delayed-draw term loan facility, which was not in the filing, and in a presentation from Sunrun instead.
Sunrun’s latest financing package is aimed at expanding the San Francisco company’s rooftop solar business. But the investment in its growth comes amidst uncertainties in the solar patch due to a high-profile trade case.
Suniva in May filed a suit with the International Trade Commission seeking to have the U.S. government impose tariffs on foreign made crystalline silicon photovoltaic cells and modules. Suniva was later joined in the petition by Solar World, another solar panel manufacturer.
Solar panel manufacturers have been hit hard by cheap panels from overseas. The latest casualty was Stion, which earlier this week said it will close its solar panel factory in Hattiesburg, Miss., citing foreign competition. The company is a thin film developer and, on one hand, stands to benefit from any tariffs. But, on the other hand, the scope of the ongoing trade case does not cover thin film panels.
The decision about the issue tariffs ultimately rests with President Donald Trump, who faces a January deadline.
Many stakeholders in the solar industry oppose the tariffs. They argue that the tariffs would raise the prices for solar panels and those increases would be passed on to consumers. Higher prices could, in turn, slow the spread of solar power, which has been largely fueled in recent years by falling costs. Earlier this month, however, First Solar broke ranks with the Solar Energy Industries Association, and came out in favor of the tariffs.
- Bloomberg Technology Sunrun Obtains $244 Million Financing for Rooftop Solar
Follow Peter Maloney on Twitter