Sunrun Inc. 8-K

What Happened

• Sunrun Inc. announced on Jan 6, 2026 (reporting an agreement dated Dec 31, 2025) that it entered into Amendment No. 4 to its Credit Agreement (originally dated Jan 24, 2022) with KeyBank National Association as administrative agent.
• The amendment extends the facility maturity from March 1, 2027 to March 1, 2028, reduces the committed amount to approximately $321,394,000 (equal to the facility usage immediately before the amendment) and provides for further commitment reductions tied to certain prepayments (but not below $150,000,000).
• It also raises the letter-of-credit sublimit, increases the quarter-end liquidity requirement over time, and tightens the maximum modified leverage covenant.

Key Details

• Amendment date: December 31, 2025; 8-K filed Jan 6, 2026.
• New stated maturity: March 1, 2028 (was March 1, 2027).
• Commitments reduced to ≈ $321,394,000 (floor of $150,000,000 for future reductions).
• Letter-of-credit sublimit increased from $100,000,000 to $150,000,000.
• Quarter-end liquidity requirement raised from 15% to a maximum of 20% of amounts utilized (phased by +1% each quarter starting with the quarter ended Dec 31, 2025 through Dec 31, 2026).
• Maximum modified leverage ratio tightened (amendment reduces the allowed ratio to 5.00:1.00 as reflected in the filing).
• Facility remains subject to quarterly-tested covenants (audited financials, interest-coverage, current ratio, leverage, minimum unencumbered cash); Sunrun was in compliance as of Sept 30, 2025 and would have been in compliance with the amended covenants as of that date.

Why It Matters

• This amendment directly affects Sunrun’s borrowing capacity and financial flexibility: it aligns committed capacity with current usage (no excess borrowing capacity beyond ~$321M), while raising certain requirements that could require Sunrun to hold more liquidity at quarter-ends.
• Increasing the letter-of-credit sublimit may support contractual or project obligations that rely on letters of credit, but the higher liquidity and tightened leverage covenant reduce cushion for the company relative to the prior terms.
• For investors, these are material changes to Sunrun’s credit profile and liquidity terms disclosed under Item 1.01 (and reflected as a direct financial obligation under Item 2.03) of the 8-K; the company reported it was compliant with covenants as of the most recent quarter.