(Bloomberg) — Sunrun Inc., the biggest US residential-solar company, fell to a four-month low on concerns of its exposure to collapsed lender Silicon Valley Bank.
(Bloomberg) — Sunrun Inc., the biggest US residential-solar company, fell to a four-month low on concerns of its exposure to collapsed lender Silicon Valley Bank.
The company said it has less than $80 million of cash deposits with the bank, according to a statement Friday. Sunrun’s shares fell as much as 17% on Friday, and closed down 12% in New York, the biggest drop since June. Sunnova Energy International Inc., another large solar firm, said it had minimal exposure to SVB. Its shares slumped 6.4%.
Silicon Valley Bank has been a key supporter to cleantech and innovative agriculture firms — industries that once struggled to raise financings. SVB made a point to highlight its collaboration with Sunrun, which topped Tesla several years ago to become America’s rooftop solar leader.
“By 2020, SVB had provided nearly $240 million of financing across five Sunrun debt transactions,” according to an SVB web page specifically about Sunrun.
SVB is among 13 lenders in Sunrun’s $600 million recourse credit facility, the solar company said. That facility is fully utilized.
The bank is also among nine lenders to Sunrun’s $1.8 billion non-recourse senior aggregation warehouse facility, of which about $710 million is undrawn. Sunrun said SVB’s undrawn commitment was about $40 million.
While SVB is a facilitator of interest rate hedges, Sunrun said “to our knowledge they are not ultimately the backer of these derivatives,” though it’s evaluating the legal structures associated with them.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.