Sunrun Expands Loan to Fund Growth of Rooftop Solar Operationsby
Financing deal increases warehouse facility to $340 million
‘This is a facility designed to build scale,’ chairman says
Sunrun Inc., the third-largest U.S. residential solar developer, increased the size of a project finance loan to $340 million from $250 million. The deal closed last week.
“This is a facility designed to build scale,” Ed Fenster, chairman of the San Francisco-based company, said in an interview Wednesday. “This is a loan that will support our growth into the second quarter of 2017.” The original $250 million deal closed in January.
Sunrun plans to borrow against the loan as the company wins new business. “Because it is a warehouse facility, we’re not increasing the leverage level,” Fenster said. “It’s just a facility that would support more customers.”
Investec Plc arranged the five-year financing and the expansion. The NY Green Bank is among the lenders that have now joined, Sunrun’s first deal with the state-sponsored financial agency designed to increase clean-energy investment in the state. NY Green Bank expects that participating in the loan will help spur as much as $140 million in solar projects in the state.