Sunnova extends forbearance agreement to June 2

HOUSTON, TX – Sunnova Energy International Inc . (NYSE:NOVA) has reached an agreement to extend the forbearance period with holders of its senior notes, according to a regulatory filing on Friday. The extension comes as the Houston-based renewable energy company, currently carrying $8.49 billion in total debt, continues to navigate through financial challenges. According to InvestingPro data, the company’s current ratio of 0.78 indicates its short-term obligations exceed its liquid assets.

The forbearance agreement, initially entered into on May 2, 2025, pertains to Sunnova’s 11.750% Senior Notes due 2028 and its 5.875% Senior Notes due 2026. The company had elected to defer a $23.5 million interest payment due on April 1, 2025, for the 11.750% notes, utilizing a 30-day grace period that expired on May 1, 2025. Failure to make the payment by the end of the grace period would constitute an event of default, potentially accelerating the maturity of the notes. The company’s Altman Z-Score of -0.02 suggests significant financial distress, as revealed by InvestingPro analysis.

The forbearance agreement had been previously extended multiple times, with the latest extension pushing the expiration to June 2, 2025, unless another event of termination occurs. During this period, the supporting holders have agreed to forbear from exercising any rights and remedies with respect to the specified default and cross-default under the indentures governing the notes. They are also prohibited from transferring the notes except under certain conditions.

This extension provides Sunnova with additional time to address the payment default and to explore financial and strategic alternatives. The company has cautioned that forward-looking statements in the report involve risks and uncertainties, and actual results may differ materially from those anticipated in such statements.

The information in this article is based on a press release statement from Sunnova Energy International Inc. and reflects the company’s current views regarding its financial position and future events. With the stock down 96% over the past six months and a market capitalization of just $26.7 million, investors seeking deeper insights can access comprehensive analysis and 19 additional key indicators through InvestingPro’s detailed research reports.

In other recent news, Sunnova Energy International Inc. is facing significant financial challenges, starting with a compliance issue after failing to file its quarterly financial report on time with the New York Stock Exchange (NYSE). The NYSE has given Sunnova until November 19, 2025, to submit the overdue report or face potential delisting. Additionally, Sunnova has extended its forbearance agreement related to its senior notes, allowing more time to address a delay in interest payments. Fitch Ratings has downgraded Sunnova’s Long-Term Issuer Default Ratings to ’RD’ due to a missed interest payment on its $400 million senior notes. The company is reportedly preparing for a potential Chapter 11 bankruptcy filing, according to Bloomberg, as it explores various financial options to manage its debt. Despite these challenges, Sunnova is working with its lenders to find a solution, including securing bridge financing. Investors are closely monitoring these developments, which have raised concerns about the company’s financial stability.

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