\nSunnova Energy International Inc. (\u201cSunnova\u201d or the \u201cCompany\u201d) (NYSE: NOVA) today announced that on June 8, 2025, the Company and certain of its subsidiaries voluntarily filed petitions for chapter 11 relief in the United States Bankruptcy Court for the Southern District of Texas (\u201cthe Court\u201d) to facilitate a sale process for certain of the Company\u2019s assets and business operations. The Company intends to continue operating its business in the ordinary course throughout the sale process.<\/p>\n
\nIn order to maximize value for all stakeholders, Sunnova will conduct a court-supervised sale process to elicit the highest or otherwise best bid for the Company\u2019s assets. Sunnova expects to complete the marketing and sale process, which will provide interested parties the opportunity to submit competing bids for the Company’s assets, in approximately 45 days.<\/p>\n
\n\u201cToday\u2019s actions mark a critical step towards securing a value-maximizing outcome for Sunnova\u2019s stakeholders,\u201d said Paul Mathews, Chief Executive Officer of Sunnova. \u201cThroughout this process, maintaining continuity of service for our customers is our top priority as we work to secure a long-term solution for our business operations under new ownership. I\u2019m incredibly grateful to our dedicated Sunnova team for their hard work and commitment. We have built an innovative power provider, and I continue to believe deeply in the future of our industry and the promise of residential solar and storage.\u201d<\/p>\n
\nSunnova intends to continue to monitor, manage, and service solar and storage systems in the ordinary course during the sale process. The Company plans to communicate directly with customers regarding any material changes that may impact the service and support provided by Sunnova.<\/p>\n
Entry into the Asset Purchase Agreement and Settlement Agreement with ATLAS SP Partners and Solar Power System Purchase Agreement with Lennar Homes, LLC<\/b><\/p>\n
\nSunnova announced that it has entered into an asset purchase agreement (the \u201cAsset Purchase Agreement\u201d) between Sunnova Energy Corporation (\u201cSEC\u201d), Sunnova TEP Developer, LLC (\u201cTEP Developer\u201d), Sunnova TEP Holdings, LLC (\u201cTEP Holdings\u201d), and Sunnova TEP Holdings Subsidiary, LLC (\u201cTEPH Subsidiary\u201d) under which certain solar systems, and rights and customer agreements related to them, will be sold to TEPH Subsidiary. The purchase price of $15.0 million will be paid from proceeds borrowed under TEP Holdings\u2019 existing warehouse credit facility. ATLAS SP Partners (\u201cATLAS\u201d), Sunnova, and certain of its affiliates also entered into a settlement agreement (the \u201cSettlement Agreement\u201d). Upon approval of the Asset Purchase Agreement and Settlement Agreement by the Court, Sunnova will facilitate ATLAS\u2019 direct negotiations with certain dealers and installers that have worked with Sunnova in the past with the goal of completing certain in-process solar systems. The Asset Purchase Agreement and Settlement Agreement will provide Sunnova with additional liquidity to support its operations and the payment of employee obligations during the chapter 11 process.<\/p>\n
\nThe Company has also entered into an Asset Purchase Agreement (the \u201cSolar Power System Purchase Agreement\u201d) with Lennar Homes, LLC. Upon Court approval, Lennar will acquire certain assets related to Sunnova\u2019s New Homes business unit for aggregate consideration of approximately $16.0 million.<\/p>\n
Tax Equity Partnerships and Asset Backed Securities Remain Intact<\/b><\/p>\n
\nThe chapter 11 filing and the various transactions in connection with it will not have any material impact on Sunnova\u2019s closed tax equity partnership affiliates or asset-backed securities, as those investment structures are bankruptcy remote. The Company intends to continue to prioritize servicing and performance for the benefit of its asset-backed security holders and tax equity partners.<\/p>\n
Operations During Chapter 11<\/b><\/p>\n
\nSunnova intends to use the funds from the Asset Purchase Agreement and Solar Power System Purchase Agreement, upon approval by the Court, as well as cash-on-hand, to support core business operations during the initial period of the chapter 11 sale process as the Company works to finalize ongoing initiatives to secure additional capital.<\/p>\n
\nAmong other customary relief, the Court granted interim approval on a number of customary \u201cFirst Day Motions\u201d to facilitate a smooth transition into chapter 11, including requests for approval to continue to pay employee wages and benefits, maintain customer programs and service, and honor post-petition obligations to its commercial partners, providing the Company the ability to continue certain business operations during the chapter 11 process.<\/p>\n
\nThe Company has also secured interim relief to continue to uphold and honor loan agreements, lease agreements, power purchase agreements, service agreements, managed solar renewable energy certificates and demand response agreements, warranties, and production guarantees throughout the chapter 11 process.<\/p>\n
\nThis filing follows the voluntary chapter 11 petition filed by TEP Developer, a subsidiary of the Company, on June 1, 2025. Sunnova has sought relief to jointly administer these chapter 11 cases.<\/p>\n
\nCustomers and commercial partners can find additional information regarding the Company\u2019s chapter 11 process at https:\/\/www.sunnova.com\/lp\/financialrestructuring<\/a> and at https:\/\/restructuring.ra.kroll.com\/Sunnova<\/a>. Stakeholders with questions can contact the Company\u2019s claims agent, Kroll, by calling (888) 975-5436 (U.S. and Canada toll free) or +1 (646) 930-4686 (International) or emailing SunnovaInfo@ra.kroll.com<\/a>.<\/p>\n Advisors<\/b><\/p>\n \nKirkland & Ellis LLP and Bracewell LLP are serving as legal counsel, Alvarez & Marsal is serving as financial advisor, Moelis & Company LLC is serving as investment banker, and C Street Advisory Group is serving as strategic communications advisor to the Company.<\/p>\n About Sunnova<\/b><\/p>\n \nSunnova Energy International Inc. (NYSE: NOVA) is an industry-leading adaptive energy services company focused on making clean energy more accessible, reliable, and affordable for homeowners and businesses. Through its adaptive energy platform, Sunnova provides a better energy service at a better price to deliver its mission of powering energy independence\u2122. For more information, visit http:\/\/www.sunnova.com<\/a>.<\/p>\n Forward Looking Statements<\/b><\/p>\n \nThis press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or the Company\u2019s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as \u201cmay,\u201d \u201cwill,\u201d \u201cshould,\u201d \u201cexpects,\u201d \u201cplans,\u201d \u201canticipates,\u201d \u201cgoing to,\u201d \u201ccould,\u201d \u201cintends,\u201d \u201ctarget,\u201d \u201cprojects,\u201d \u201ccontemplates,\u201d \u201cbelieves,\u201d \u201cestimates,\u201d \u201cpredicts,\u201d \u201cpotential\u201d or \u201ccontinue\u201d or the negative of these words or other similar terms or expressions that concern the Company\u2019s expectations, strategy, priorities, plans or intentions. Forward-looking statements in this press release include, but are not limited to, statements regarding the debtors\u2019 continued operation of the business in the ordinary course throughout the sale process; the Company\u2019s expectation to be granted \u201cfirst day\u201d motions and the ability to pay for certain continuing obligations, including, but not limited to, employee wages and benefits, maintain customer programs and service and uphold and honor certain agreements, certificates and guarantees; the Company\u2019s ability to honor its obligations under certain financing structures; and any assumptions underlying any of the foregoing. All statements, other than statements of historical fact, are forward-looking statements. Any such forward-looking statements may involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company\u2019s ability to fund its planned operations and its ability to continue as a going concern; the adverse impact of the chapter 11 cases on the Company\u2019s business, financial condition and results of operations; the Company\u2019s ability to improve its liquidity and long\u2011term capital structure and to address its debt service obligations; the Company\u2019s ability to maintain relationships with customers, employees and other third parties as a result of the chapter 11 cases; the effects of the chapter 11 cases on the Company and the interests of various constituents, including holders of the Company\u2019s common stock; the Company\u2019s ability to obtain court approvals with respect to motions filed or other requests made to the Court throughout the course of the chapter 11 cases; the length of time that the Company will operate under chapter 11 protection and the continued availability of operating capital during the pendency of the chapter 11 cases; risk associated with third-party motions in the chapter 11 cases; the Company\u2019s ability to maintain the listing of its common stock on The New York Stock Exchange, and the resulting impact of a delisting; and the risks and other important factors discussed under the caption \u201cRisk Factors\u201d in the Company\u2019s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as amended, and subsequent Quarterly Reports on Form 10-Q. These forward-looking statements should not be relied upon as representing the Company\u2019s views as of any subsequent date, and the Company is under no obligation to, and expressly disclaims any responsibility to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20250609360015\/en\/<\/a><\/span><\/p>\n Sunnova Media Contacts \nC Street Advisory Group Sunnova Investor Contact KEYWORDS:<\/b> United States North America Texas<\/p>\n INDUSTRY KEYWORDS:<\/b> Green Technology Alternative Energy Energy Environment Sustainability<\/p>\n<\/p>\n
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Russell Wilkerson
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203-581-2114
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russell.wilkerson@sunnova.com<\/a><\/p>\n
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Sunnova@thecstreet.com<\/a><\/p>\n
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IR@sunnova.com<\/a><\/p>\n
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