KBRA assigns preliminary ratings to two classes of notes issued by Luminace ABS-2022 Issuer, LLC. The Notes are secured by forward project revenues from a portfolio of 376 commercial and industrial photovoltaic systems (“PV Systems”) owned by 23 project companies, each of which is a direct or indirect, wholly-owned subsidiary of the Issuer. The PV Systems are grouped into 74 different projects, 46 of which are subject to a Master Lease Agreement (“MLA”) between subsidiaries of the Issuer and Sunbeam LeaseCo, LLC (the “Lessee”), an unrelated third party. The aggregate discounted solar asset balance (“ADSAB”) based on a discount rate of 5.0% (PV5 ADSAB), consisting of the discounted projected payments under the power purchase agreements, post-PPA merchant revenue, and contractual sale of solar renewable energy credits (“SREC”), is approximately $449.5 million.

The three largest geographic concentrations by ADSAB include California, Maryland, and Arizona, which together represent approximately 87.7% of the number of PV sites and approximately 66.0% of the ADSAB. The average system size is 676.3 kW DC. The weighted average original tenor of the leases is 275 months, while the weighted average remaining tenor is 215 months.

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