Sunnova Energy unit gets $875 million credit agreement to fund solar loans

By Mary-Katherine Stinson

Lexington, Ky., Aug. 7 – Sunnova Energy International Inc.’s wholly owned subsidiary Sunnova EZ-Own Portfolio, LLC entered on Aug. 2 into a second amended and restated credit agreement from March 27, 2019 providing for a revolving credit facility with a total commitment amount of $875 million and an uncommitted maximum facility amount of $1 billion, according to an 8-K filing with the Securities and Exchange Commission.

The EZOP credit agreement matures Nov. 20, 2025.

The amount available for borrowings is limited to a borrowing base based on the net aggregate solar loan balance of EZOP’s eligible solar loans multiplied by the weighted average advance rate. EZOP can borrow new advances under the facility during an availability period, scheduled to end on May 20, 2025.

Interest accrues at term SOFR plus a credit spread adjustment specific to each lender.

There is an unused line fee based on the daily unused portion of the commitments.

EZOP is also required to maintain certain reserve accounts, each of which must always remain funded to specified levels set out in the amended EZOP agreement.

In connection with the EZOP revolving facility, certain of the company’s affiliates receive a fee for managing and servicing the solar loan agreements and related solar energy systems under amended and restated management and servicing agreements.

Atlas Securitized Products Holdings, LP is listed as the administrative agent on the Aug. 2 amended and restated agreement.

Wells Fargo, NA is the paying agent.

U.S. Bank NA is the custodian.

Sunnova SLA Management, LLC is listed as the manager and servicer with Sunnova Asset Portfolio 7 Holdings, LLC as the seller.

The proceeds are available to purchase or acquire solar loans originated by Sunnova Energy Corp. and related solar assets directly from AP7H pursuant to a sale and contribution agreement, to fund certain required reserve accounts in accordance with the amended agreement and to pay related facility fees and expenses.

Sunnova is a Houston-based solar energy company.

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