SunPower Closes Agreement for Up to $44.5 Million in Non-Recourse Debt to Finance Residential Solar Lease Program Innovative Partnership with Hannon Armstrong
ANNAPOLIS, Md. and SAN JOSE, Calif., July 28, 2014 /PRNewswire/ -- Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE: HASI) and SunPower Corp. (NASDAQ: SPWR) today announced an agreement under which HASI is expected to provide up to $44.5 million in non-recourse debt to help finance SunPower's residential solar lease program. The transaction allows SunPower to leverage existing lease assets and expand its program while increasing its cash position and strengthening its balance sheet. More than 20,000 Americans are enrolled in the company's lease program.
This is the second transaction announced by the two companies this year. In early April, Hannon Armstrong and SunPower announced a $42 million non-recourse debt financing.
"We are pleased to extend our partnership with Hannon Armstrong to further fund the demand for SunPower's residential lease program, which is one finance option we offer homeowners," said SunPower CFO Chuck Boynton. "The SunPower Lease program offers our customers financing under highly competitive terms for their SunPower solar panels, the most efficient on the market today. When coupled with our unprecedented level of energy assurance, the SunPower Lease program delivers more value to the homeowner."
"We continue to be impressed with the quality of SunPower's technology and we are pleased to be able to participate in supporting the expansion of its residential service offerings," said Jeffrey Eckel, president and CEO of HASI. "The expanded partnership with SunPower is consistent with our strategic growth initiatives, as we continue to target economic, reliable and sustainable distributed energy assets that generate a sustainable yield."
In addition to attractive terms and low monthly payments, the SunPower lease includes one of the solar industry's only direct-from-manufacturer performance guarantees.
About Hannon Armstrong
Hannon Armstrong (NYSE: HASI) makes debt and equity investments in sustainable infrastructure projects. The company focuses on profitable projects that increase energy efficiency, provide cleaner energy, positively impact the environment or make more efficient use of natural resources. Hannon Armstrong targets projects that have high credit quality obligors, fully contracted revenue streams and inherent economic value.
The company, based in Annapolis, Maryland, intends to elect and qualify to be taxed as a real estate investment trust (REIT) for federal income-tax purposes, commencing with its taxable year ended Dec. 31, 2013. For more information, visit www.hannonarmstrong.com.
SunPower Corp. (NASDAQ: SPWR) designs, manufactures and delivers the highest efficiency, highest reliability solar panels and systems available today. Residential, business, government and utility customers rely on the company's quarter century of experience and guaranteed performance to provide maximum return on investment throughout the life of the solar system. Headquartered in San Jose, Calif., SunPower has offices in North America, Europe, Australia, Africa and Asia. For more information, visit www.sunpower.com.
SunPower is a registered trademark of SunPower Corp. All other trademarks are the property of their respective owners.
SOURCE SunPower Corp.