SunPower, Hannon Armstrong and SunStrong Secure Attractive Financing for Residential Solar Lease Business Into 2020
New Fund Will Supplement U.S. Customer Solar Purchase Options of Cash and Loan
SunStrong Acquires SunPower Residential Lease Portfolio from Capital Dynamics SAN JOSE, Calif., June 19, 2019 /PRNewswire/ -- SunPower (NASDAQ:SPWR) today announced that with Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) and SunStrong Capital Holdings, LLC, it has secured financing commitments for its residential solar lease program that will help meet SunPower's expected customer demand into 2020. SunPower has provided solar lease financing options to customers since 2010. The attractive financing provisions with this new fund will supplement the solar loan and cash sale alternatives currently offered by the company. The new fund is structured as a levered tax equity partnership with a multi-party forward purchase commitment, allowing generation of upfront cash margins for residential solar leases. The financing commitments for this new fund are being provided largely from a repeat group of loan and equity providers that continue to have strong long-term relationships with SunPower and Hannon Armstrong. Bank of America Merrill Lynch (NYSE: BAC) acted as the sole structuring and placement agent for the cash equity and multi-draw term loan, as well as the sole tax equity investor. Additional equity capital was provided by SunPower, Hannon Armstrong and their joint venture SunStrong, which holds equity interests in more than 55,000 residential solar energy systems. "SunPower's strong suite of acquisition options, and our technologically superior solar energy solutions, allows us to continue meeting growing customer demand," said Tom Werner, SunPower CEO and chairman of the board. "Thanks to our financing partners, who share our clean energy future goals, we're able to ensure funding to meet the needs of those customers who desire a leasing option." "This latest fund continues our multi-year programmatic investment with SunPower, helping to decarbonize the residential sector using solar, one of the climate solutions essential to mitigating climate change," said Jeffrey Eckel, Hannon Armstrong president and CEO. "We are especially pleased with the expansion of SunStrong's role in this innovative fund as it demonstrates the increased financial capabilities of this new joint venture with SunPower." Residential Solar Business SunStrong Acquires Capital Dynamics Residential Lease Portfolio "This transaction reinforces SunStrong's belief in the long-term value of owning high quality solar systems and SunPower's commitment to providing on-going products and services to our customers," said Werner. About SunPower About Hannon Armstrong SunPower's Forward-Looking Statements © 2019 SunPower Corporation. All Rights Reserved. SUNPOWER and the SUNPOWER logo are registered trademarks of SunPower Corporation in the U.S. and other countries as well.
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