Sunrun releases preliminary Q4'20 results, plans private note offering

Sunrun Inc. deployed approximately 171.6 MW in the fourth quarter of 2020, based on preliminary results the company release Jan. 25.

The megawatts deployed for the period represent a 10% sequential increase from the third quarter of 2020, pro forma to give effect to the company's acquisition of Vivint Solar Inc. in October 2020.

The company's preliminary gross earning assets were $6.92 billion and net earnings assets were $2.90 billion as of Dec. 31, 2020, Sunrun said in a news release.

Sunrun's cash, including unrestricted cash, was $708 million, while total debt was $5.1 billion at the end of 2020.

The company expects to release full fourth-quarter 2020 earnings on or around Feb. 25, 2021.

Separately, Sunrun plans to offer $350 million of convertible senior notes due Feb. 1, 2026, in a private placement to qualified institutional buyers.

Initial purchasers are also expected to be granted the option to purchase up to an additional $50 million of notes within a 13-day period upon first issuance, according to a separate Jan. 25 news release.

The notes will be convertible into cash, shares of Sunrun's common stock or a combination of both at the company's election.

Sunrun plans to use net proceeds to pay the cost of capped call transactions with one or more of the initial purchasers, their affiliates and/or other financial institutions. It will use the rest to repay outstanding debt and for other general corporate purposes, which may include working capital, capital expenditures, and potential acquisitions and future strategic transactions.

The capped call transactions with the option counterparties are expected to reduce or offset potential dilution to Sunrun's common stock upon any note conversion and/or offset any required cash payments for the excess of the principal amount of converted notes.