AUSTIN, Texas, June 02, 2025 (GLOBE NEWSWIRE) -- SunStrong Capital Holdings, LLC (“SunStrong”) today announced the closing of a $254 million securitization of residential solar and battery system loan agreements.
SunStrong is a first-of-its-kind business model created through the acquisition of legacy SunPower assets, including more than 110,000 solar loan and lease systems, and focused exclusively on distributed energy asset management.
SunStrong Issuer 2025-A, LLC (“STRONG 2025-A”) is the inaugural securitization on the SunStrong shelf supported by SunStrong Management, LLC (“SunStrong Management”) in its role as Asset Manager.
SunStrong Management is the first and only full-service asset manager not attached to an origination platform, with dedicated solar expertise to ensure the stabilization and continued customer success of the portfolio. The business is led by CEO Brendon Merkley, who was formerly the COO of GoodLeap, the nation’s largest originator of residential solar loans, Executive Vice President of Customer Operations & Information Systems at SolarCity, and co-founder of Vivint Solar.
Transaction Details
The transaction was structured with four classes: a $169.1 million AA- rated Class A and a $67.1 million A- rated Class B, which were issued, and a $9.4 million BBB- rated Class C and an $8.2 million BB rated Class D, which were retained. The Class A notes and Class B notes were both placed in the public asset backed securitization market with coupons of 6.19% and 6.70%, respectively. After attracting strong demand and oversubscription, the Class A notes priced at a 6.271% yield, and the Class B notes priced at a 7.192% yield.
The notes are backed by a diversified portfolio of $349.4 million of solar loan obligations financing 8,639 systems distributed across 33 states, representing 68 MW of generation capacity. The loans in the STRONG 2025-A pool have a weighted average FICO of 757. The transaction priced on May 16, 2025, and closed on May 28, 2025. As of the transaction’s cut-off date, 80% of the portfolio has 12 months or more of payment history and 98% of the portfolio has never been more than 30 days past due.
ATLAS SP Partners (“ATLAS”), the warehouse finance and securitized products business majority owned by Apollo funds, served as the sole structuring agent and sole bookrunner on the transaction.
Commentary
Brendon Merkley, CEO of SunStrong Management, said: “SunStrong is a first-of-its-kind business model that will support long-term value in residential solar assets. This issuance is a first step in our mission of providing excellent service for both of our client bases, our customers and our capital providers.”
Spencer Hunsberger, Head of Energy Origination at ATLAS, said: “We’re proud to have worked alongside SunStrong and its partners on this landmark securitization, which showcases the strength of the underlying assets, the value of independent servicing and the power of innovative structuring and disciplined execution, which is exactly what ATLAS is built to provide. This transaction marks a pivotal step forward – not just for SunStrong and its customers, but for the evolution of the broader residential solar finance market and beyond.”
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
About SunStrong
SunStrong Capital Holdings, LLC owns a fleet of over 110,000 residential solar loans and leases across the U.S. totaling nearly 1 GW of power generation capacity and 19 MW of commercial solar assets. SunStrong Management, LLC is an independent asset management and servicing company with dedicated expertise in the residential and commercial solar asset classes. Directly or via its partners, its capabilities include full-service billing and collections, operations & maintenance, asset management, legal/compliance, and tax and accounting services. Its industry veteran leadership team draws on its solar expertise to deliver solutions that promote sustainable lifestyles. For more information, please visit sunstrongmanagement.com.
About ATLAS SP Partners
ATLAS SP is a global investment firm providing stable capital, financing, advisory and institutional products to market participants seeking innovative and bespoke structured credit and asset backed solutions. We’re proud to build upon a legacy of client excellence that includes certainty of execution, deep expertise and full-service capabilities across the asset management landscape. For more information, visit atlas-sp.com.
Media Contact:
Kate Thompson
Joele Frank, Wilkinson Brimmer Katcher
sunstrong@joelefrank.com
