Hannon Armstrong Sustainable Infrastructure Capital Inc. Issues $300 Million Additional Green Senior Unsecured Notes Due 2034

Hannon Armstrong Sustainable Infrastructure Capital Inc. (NYSE: HASI) recently announced the issuance of an additional $300 million aggregate principal amount of 6.375% green senior unsecured notes due 2034. The issuance, which occurred on December 12, 2024, involved the issuance of these notes under the existing indenture dated July 1, 2024.

The notes, referred to as the “Additional Notes,” were priced at 99.867% of the principal amount plus accrued interest since July 1, 2024, resulting in a reoffer yield of 6.393%. The Additional Notes are part of the same series as the Company’s existing 6.375% green senior unsecured notes due 2034.

The issuance of the Additional Notes was carried out in a private offering exempt from the registration requirements of the Securities Act of 1933. The offering was made to qualified institutional buyers within the United States and non-U.S. persons in offshore transactions in compliance with Rule 144A and Regulation S under the Securities Act, respectively.

The net proceeds from the offering will be used by the Company to temporarily repay a portion of its outstanding borrowings under the unsecured credit facility and commercial paper program established on September 24, 2021. The Company intends to further allocate the remaining proceeds to acquire, invest in, or refinance eligible green projects, including those with disbursements made within the 12 months preceding the issue date and those to be disbursed within two years following the issue date.

As part of the offering, the Company also entered into a registration rights agreement with the representatives of the initial purchasers of the Additional Notes. Pursuant to this agreement, the Company agreed to file an exchange offer registration statement with the SEC for the exchange of the Additional Notes with new registered notes issued by the Company. The Company aims to complete this exchange offer by June 30, 2025.

In case the Company fails to fulfill its registration obligations as per the agreement, it will be required to pay additional interest to the holders of the Additional Notes. Detailed information about the terms and conditions of the offering and the registration rights agreement can be found in the Company’s current report on Form 8-K filed with the SEC on July 1, 2024.

This latest development reflects Hannon Armstrong Sustainable Infrastructure Capital Inc.’s strategic approach to funding and supporting green projects while ensuring compliance with regulatory requirements and enhancing transparency for its investors.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Hannon Armstrong Sustainable Infrastructure Capital’s 8K filing here.

About Hannon Armstrong Sustainable Infrastructure Capital

Hannon Armstrong Sustainable Infrastructure Capital, Inc, through its subsidiaries, engages in the investment in energy efficiency, renewable energy, and sustainable infrastructure markets in the United States. The company's portfolio includes equity investments, commercial and government receivables, real estate, and debt securities.