Sunnova Faces Urgent Default Deadline Amid Creditor Pressure

• Sunnova Energy battles financial turmoil, racing against time to resolve defaults and secure fresh funds amid a struggling solar sector.

Sunnova Energy International Inc. is facing increased pressure from creditors as it attempts to avoid bankruptcy. The company has been given a short deadline to address a technical default on a warehouse loan, with a potential one-day notice to cure the default. Sunnova is also negotiating with another group of creditors for fresh cash, having missed an interest payment on unsecured bonds due in 2028, risking default if not paid within a 30-day grace period.

The residential solar sector is struggling due to high interest rates and reduced government incentives, impacting Sunnova's financial stability. The company has $167 million in outstanding debt under the warehouse loan facility, with Atlas Securitized Products, part of Apollo Global Management Inc., acting as the agent. Sunnova previously warned it lacks resources to repurchase solar loans or repay related principal amounts.

How is Sunnova addressing creditor pressure and potential bankruptcy amid financial struggles?

• Negotiations with Creditors: Sunnova is actively engaging in discussions with its creditors to restructure existing debt and secure additional funding to improve liquidity and avoid default.
• Seeking Fresh Capital: The company is in talks with potential investors to inject fresh capital, which could help stabilize its financial position and provide a buffer against immediate financial obligations.
• Operational Adjustments: Sunnova is exploring cost-cutting measures and operational efficiencies to reduce expenses and improve cash flow, potentially including workforce reductions or scaling back on expansion plans.
• Strategic Partnerships: The company is considering forming strategic partnerships or alliances with other firms in the renewable energy sector to leverage shared resources and expertise.
• Asset Sales: Sunnova may look into selling non-core assets or underperforming segments of its business to raise cash and focus on its core operations.
• Government Engagement: The company is lobbying for increased government support and incentives for the solar industry, which could provide financial relief and improve market conditions.
• Financial Advisory Services: Sunnova has engaged financial advisors to explore all available options, including potential restructuring or refinancing of its debt obligations.
• Communication with Stakeholders: The company is maintaining open lines of communication with stakeholders, including investors and customers, to manage expectations and provide transparency about its financial strategies and outlook.