The underwriters for the offering are Credit Suisse, Goldman Sachs, Merrill Lynch, KeyBanc Capital Markets, Morgan Stanley, RBC and SunTrust.
Sunrun provides solar energy to homeowners at a savings to traditional utility energy. After inventing the residential solar service model and recognizing its enormous market potential, the company built out the infrastructure and capabilities necessary to rapidly acquire and serve customers in a low-cost and scalable manner.
In the filing the company detailed its plan:
With our solar service offerings, we install solar energy systems on our customers’ homes and sell them the solar power produced by those systems for a 20-year initial term. Most of our customers can expect to save an estimated 20% or more on their cost of electricity over that 20-year term. In addition, we monitor, maintain and insure the system at no additional cost during the term of the contract. In exchange, we receive 20 years of predictable cash flows from high credit quality customers and qualify for tax and other benefits. We finance portions of these tax benefits and cash flows through tax equity and non-recourse debt structures in order to fund our upfront costs, overhead and growth investments. We develop valuable customer relationships that can extend beyond this initial contract term and provide us an opportunity to offer additional services in the future. Delivering a differentiated customer experience is core to our strategy.
At the end of March 2015, Sunrun had 79,000 customers across 13 states. At the same time the company has deployed an aggregate of 430 megawatts. The estimated nominal contracted payments remaining totaled approximately $1.7 billion at the end of March, and the estimated retained value equaled $1.1 billion.
Sunrun intends to use the net proceeds from this offering for general corporate purposes, including working capital, operating expenses and capital expenditures.
ALSO READ: States With the Fastest (and Slowest) Growing Economies
Top Gaining Stocks
Top Losing Stocks