Oaktree acquires Sunnova debt for upcoming creditor negotiations

Oaktree Capital Management has recently increased its investment in the debt of Sunnova Energy International Inc. The solar panel company is preparing to negotiate with its creditors regarding its financial difficulties. Oaktree has acquired around $400 million in Sunnova's debt over the past few days. According to sources, Sunnova's total net debt exceeded $8 billion at the end of last year. This includes various asset-backed loans. With its significant holdings, Oaktree is expected to play a key role in discussions with the company. Earlier this month, Sunnova issued a warning about its financial situation. Following this warning, Sunnova's creditors formed two groups. One group is working with law firms Akin Gump and Evercore, while the other is advised by Paul Weiss and Ducera Partners. Recently, these groups decided to merge into one, retaining Paul Weiss for legal support and Evercore for financial advice. Sunnova is facing challenges due to high interest rates and reduced incentives from states, making solar equipment more costly for consumers. Overall, the market for residential solar has been struggling, with US installations dropping nearly 20% last year.