HASI Prices Private Offering of $700 Million of 6.375% Green Senior Unsecured Notes due 2034
Hannon Armstrong Sustainable Infrastructure Capital (HASI) has announced the pricing of a $700 million private offering of 6.375% green senior unsecured notes due 2034. The notes, guaranteed by several affiliated entities, are set to settle on July 1, 2024, pending customary closing conditions. Net proceeds of approximately $688 million will be used to repay parts of the company's unsecured credit facility and buy back some of its 6.00% senior notes due 2025. Remaining funds will be invested in or refinance eligible green projects. The notes are being offered to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S.
- Successfully priced $700 million offering of 6.375% green senior unsecured notes due 2034.
- Expected net proceeds of approximately $688 million.
- Funds will be used to repay parts of unsecured credit facility and repurchase 6.00% senior notes due 2025.
- Commitment to investing in or refinancing eligible green projects.
- High-interest rate of 6.375% on the new notes compared to the industry average.
- Potential risk if closing conditions are not met by July 1, 2024.
- Notes not registered under the Securities Act, limiting potential investors to qualified institutional buyers and non-U.S. persons.
Hannon Armstrong's issuance of $700 million in green senior unsecured notes with a 6.375% interest rate due 2034 is quite significant. The goal of using the proceeds to pay down a portion of their unsecured credit facility and repurchase some of their 6.00% Senior Notes due 2025 indicates a strategic approach to managing their debt profile. This refinancing effort aims to take advantage of current market conditions, locking in lower long-term interest rates while retiring higher-cost existing debt.
For retail investors, this move suggests that HASI is focusing on strengthening its balance sheet and enhancing its financial flexibility. However, the interest rate on these green notes is relatively high, hinting that investors see a degree of risk. The net proceeds of
In the short term, the issuance increases the company's total debt, which could pressure liquidity if these green projects don't yield expected returns. However, the overall strategy is sound and aligns with their environmental mission, offering a balanced long-term perspective.
The issuance of green notes by Hannon Armstrong fits within a broader trend of increasing green bond offerings aimed at sustainability-focused investments. Green bonds have attracted considerable interest due to their environmental benefits and appeal to ESG investors. This strategy can broaden HASI’s investor base, increasing demand for its shares and possibly enhancing stock liquidity.
For market context, green bonds have been a growing segment of the bond market. They offer a way for companies to fund environmentally-friendly projects, which can enhance a company's public image and align it with global sustainability goals. The registration rights associated with these notes provide additional security for institutional investors, further boosting their appeal.
Retail investors should consider the broader implications of green bonds in their investment strategy. While the higher interest rate indicates perceived risk, the commitment to sustainability projects could drive long-term value, particularly as regulatory and market focus on green initiatives increases.
The Company estimates that the net proceeds from the offering of the Notes will be approximately
The Notes and the related guarantees are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and non-
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This press release shall not constitute a notice of redemption for the 2025 Notes.
About HASI
HASI (NYSE: HASI) is a leading climate positive investment firm that actively partners with clients to deploy real assets that facilitate the energy transition. With more than
Forward-Looking Statements
Some of the information in this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this press release, words such as “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may,” “target,” or similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements include those discussed under the caption “Risk Factors” included in the Company’s Annual Report on Form 10-K (as supplemented by our Form 10-K/A) for the Company’s fiscal year ended December 31, 2023, which were filed with the
Forward-looking statements are based on beliefs, assumptions and expectations as of the date of this press release. The Company disclaims any obligation to publicly release the results of any revisions to these forward-looking statements reflecting new estimates, events or circumstances after the date of this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240625066722/en/
Investors:
Aaron Chew
investors@hasi.com
240-343-7526
Media:
Conor Fryer
media@hasi.com
443-321-5754
Source: Hannon Armstrong Sustainable Infrastructure Capital, Inc.
FAQ
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