Sunrun closed a $600 million non-recourse syndicated bank facility supporting a 335 MW portfolio of leases and power purchaseagreements (the “Senior Credit Facilities”). The Senior Credit Facilities consist of a $575 million amortizing loan (the “Senior Loan”) and a $25 million debt service reserve letter of credit (“DSR LC”). Sunrun also closed an additional non-recourse subordinated financing, which is secured by Sunrun's retained equityinterest in the underlying collateral supporting the Senior Credit Facilities.

All facilitiesclosed on December 23, 2022. The $575 million Senior Loan was priced at a credit spread of approximately 212.5 basis points to the Daily Simple Secured Overnight Financing Rate (“SOFR”), with a 12.5 basis points margin step-up on the fourth anniversary of the closing date. SOFR is the successor to the London Interbank Offered Rate (LIBOR).

Concurrent with closing, the subsidiary borrower entered into long-term amortizing fixed-for-floating interest rate swaps, providing a weighted-average fixed base rate of 3.49%, and a total initial swapped Senior Loan cost of debt of 5.62%. The 212.5 basis points credit spread is approximately 100 basis points lower than the weighted average AA- and A- credit spreads for two fourth quarter solar loan asset-backed securitizations issued by others in the sector. The $25 million DSR LC is undrawn and was placed in lieu of a cash-funded debt service reserve account, which is typically required in asset-backed securitizations.

The Senior Credit Facilities were more than 1.50x oversubscribed among a syndicate of nine lenders and represents the largest senior tranche for a term financing since Sunrun's inception. The Senior Loan is structured to support amortization over the life of the assets and has a final maturity date of December 23, 2029. Concurrent with closing the Senior Credit Facilities, Sunrunraised a $235 million non-recourse subordinated financing, which increased the cumulative advance rate obtained by Sunrun.

The cost of the non-recourse subordinated financing is consistent with Sunrun's existing subordinated debt financing facilities. Taking together tax equity proceeds and other upfront cash flows, including upfront rebates and customer prepayments, the Senior Loan and the subordinated financing, Sunrun realized proceeds, net of transaction fees, that represent over 85% of the contracted Subscriber Value associated with the assets in the transaction, measured using a 5% discount rate. The Senior Loan and subordinated financing will be funded in two draws, with the first draw having occurred upon closing in December and the second draw anticipated to occur in the first quarter of 2023 concurrent with the addition of a tax equity fund currently debt-financed in Sunrun's revolving warehouse facility.