Sunrun says has less than $80M of cash deposits with SVB

Sunrun (RUN) issued a statement regarding the situation with Silicon Valley Bank (SIVB), stating: "While we are continuing to evaluate the situation and assess Sunrun’s potential exposure, the company has estimated exposure to include the following: SVB is a lender in Sunrun’s parent $600 million recourse credit facility which includes Letters of Credit along with the company’s $1.8 billion non-recourse senior aggregation warehouse facility. Both facilities have a diverse group of banks involved. The recourse credit facility has 13 lenders and the non-recourse senior aggregation warehouse facility has 9 lenders. These facilities are relatively utilized as one can see in our latest filings with the SEC. The recourse credit facility was fully utilized at the end of the quarter and continues to be. The $1.8 billion non-recourse senior aggregation warehouse facility currently has approximately $710 million undrawn, subject to additional asset contributions increasing the borrowing base, of which SVB’s undrawn commitment was approximately $40 million. While SVB is a facilitator of interest rate hedges, i.e., interest rates swaps, to our knowledge they are not ultimately the backer of these derivatives, as they involve numerous other large banks. As such, we do not expect material exposure to SVB from our interest rate hedging activities, although we will continue to evaluate the legal structures associated with these derivatives. SVB represents a small percentage of our overall hedging facilities as measured by notional value of less than 15%. SVB is not a tax equity provider to Sunrun, nor is SVB a tax equity provider to the industry, to our knowledge. Sunrun has long-standing banking relationships with multiple institutions, one of which is SVB. As of today, Sunrun has less than $80 million of cash deposits with SVB and will have more information on expected recovery next week, as noted by the FDIC statement issued today. We will continue to evaluate Sunrun’s exposure in other areas of the business, for instance, potential impacts to our commercial and strategic partners." Reference Link