Sunnova’s New KKR Loan Would Stay Outside Potential Bankruptcy

The $185 million term loan that KKR & Co. is providing to Sunnova Energy International Inc. would not be part of any potential bankruptcy proceedings, the solar company told Bloomberg News.

The three-year financing, which carries a 15% interest rate, is backed by collateral including Sunnova’s asset-based securitizations, according to a filing with the Securities and Exchange Commission. The loan would remain outside of any bankruptcy since it’s “securitized against the future cash flows of the dedicated assets,” Sunnova said to Bloomberg on Tuesday.

In response to a question about the loan’s collateral during Sunnova’s fourth-quarter call Monday, Chairman William ...