Sunnova has raised more than $1.5 billion in capital in four years to allow more Americans to access clean, affordable energy
HOUSTON, March 14, 2017 – Sunnova Energy Corporation, a leading residential solar service provider in the U.S., today announced it has obtained $80 million in tax equity funding commitments from U.S. Bancorp Community Development Corporation (USBCDC) which will enable the development of new residential solar projects with a total value of more than $200 million. The deal marks the first transaction between USBCDC, a division of U.S. Bank (NYSE: USB), and Sunnova as well as Sunnova’s entry into the tax equity market. CohnReznick Capital Markets Securities (CRCMS) was the financial advisor to Sunnova for the deal.
Sunnova intends to use the funds to further its growth in the residential solar market through affordable solar service options for homeowners. To date, Sunnova has raised more than $1.5 billion from equity and other financing transactions.
“It has been an honor to work with USBCDC on this round of financing,” said Jordan Kozar, Chief Financial Officer. “We are proud of the trust that investment partners, such as USBCDC, place in us. It’s a trust earned through financial responsibility and consistently meeting our commitments.”
“USBCDC’s confidence in Sunnova, and renewables in general, speaks to the opportunities available in the power industry,” said Sunnova CEO William J. Berger. “While some in our industry chase growth at any cost, we believe that steady, sustainable growth is good business practice – one that is essential to proving the viability of new energy sources. Sunnova’s growth is focused on achieving positive cash flow, long-term profitability and cementing our leadership role in the residential power market.”
“We continue to believe that the solar industry can and should operate independent of government subsidies and we will pursue opportunities that allow us to expand solar adoption throughout the country,” continued Berger.
“We are excited to partner with Sunnova to support the continued deployment of residential solar installations around the U.S.,” said Adam Altenhofen, vice president of renewable energy investments at USBCDC. “Consumer demand for clean affordable energy continues to remain strong and USBCDC is looking forward to helping meet that demand, while also supporting job creation in our local communities.”
“We enjoyed working with Sunnova on their first tax equity deal in assisting them in optimizing their capital structure and adding to their proven financing track record of having previously raised over $1.5 billion of institutional capital, including equity, debt and warehouse facilities, and tax equity,” stated Conor McKenna, Managing Director at CRCMS capital. “This funding allows Sunnova to further their goal of operating cash flow positive in the near term.”
Thao Pham, Edelman
Sunnova is a different kind of power company, offering rooftop solar service to homeowners in the United States and its territories through our network of local sales and installation partners. Our mission is to change the energy industry by providing the choice of low-cost, worry-free solar power that generates long-term savings for our customers and continued business growth for partners. For more information, visit sunnova.com, follow @Sunnova_Solar on Twitter, and connect with us on Facebook and LinkedIn.
ABOUT U.S. BANCORP COMMUNITY DEVELOPMENT CORPORATION
With $22.6 billion in managed assets as of Dec. 31, 2016, U.S. Bancorp Community Development Corporation, a subsidiary of U.S. Bank, provides innovative financing solutions for community development projects across the country using state and federally sponsored tax credit programs. USBCDC's commitments provide capital investment to areas that need it the most and have contributed to the creation of new jobs, the rehabilitation of historic buildings, the construction of needed affordable and market-rate homes, the development of renewable energy facilities, and the generation of commercial economic activity in underserved communities. Visit USBCDC on the web at www.usbank.com/cdc.
ABOUT U.S. BANCORP
Minneapolis-based U.S. Bancorp (NYSE: USB), with $446 billion in assets as of December 31, 2016, is the parent company of U.S. Bank National Association, the fifth largest commercial bank in the United States. The Company operates 3,106 banking offices in 25 states and 4,842 ATMs and provides a comprehensive line of banking, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.
ABOUT COHNREZNICK CAPITAL MARKETS SECURITIES, LLC
CRCMS offers a comprehensive financial advisory platform for the renewable energy and sustainability industries, including solutions for corporations that includes corporate financing, project financing, and M&A advisory. The company represents financial institutions, infrastructure funds, strategic participants (IPPs and utilities), and the leading wind, solar, biomass, and other clean energy developers nationwide. CRCMS has successfully executed more than $12 billion in project and corporate transactions. To learn more, visit www.cohnreznickcapmarkets.com.