Oaktree increases Sunnova debt investment before negotiations

Oaktree Capital Management has been purchasing debt from Sunnova Energy International Inc. This comes as Sunnova gets ready to negotiate with its creditors about its financial issues. People familiar with the situation say that Oaktree has bought around $400 million of Sunnova’s debt in recent days. At the end of last year, Sunnova had over $8 billion in net debt, including asset-backed loans. Oaktree's significant investment means it will likely lead the discussions with Sunnova, especially after the company issued a warning about its financial future earlier this month. A group of lenders is expected to begin private talks with Sunnova soon. Recently, two creditor groups decided to merge and are being advised by financial firms, including Paul Weiss and Evercore. Sunnova is facing challenges due to high interest rates and reduced state incentives, making solar equipment more expensive for consumers. The overall market for residential solar has struggled, with US installations dropping nearly 20% last year.