ANNAPOLIS, Md. - Hannon Armstrong (NYSE:HASI) Sustainable Infrastructure Capital, Inc. (NYSE:HASI), a prominent investor in climate solutions, today announced the private offering of $100 million in 8.00% green senior unsecured notes due 2027. This offering, subject to market conditions, is to be conducted by its indirect subsidiaries, HAT Holdings I LLC and HAT Holdings II LLC, with the notes being additional to and of the same class as the existing 8.00% green senior unsecured notes due 2027.
The proceeds from the note issuance are earmarked for investment in a range of green projects, including Behind-the-Meter, Grid-Connected, and Fuels, Transport, and Nature markets. These investments are anticipated to yield an average of approximately 11%, aiming for a mid-teen Return on Equity. The company also intends to allocate the net proceeds to refinance, either in whole or in part, eligible green projects that may have been disbursed in the twelve months preceding the issue date or are planned for disbursement thereafter.
In the interim, before the full investment of the net proceeds, Hannon Armstrong plans to use the funds to temporarily repay a portion of the outstanding borrowings under the company's unsecured revolving credit facility. Any remaining proceeds not directed towards the credit facility will be invested in interest-bearing accounts and short-term, interest-bearing securities.
The securities will be offered exclusively to qualified institutional buyers and non-U.S. persons in accordance with Rule 144A and Regulation S under the Securities Act of 1933, as amended. These notes and the related guarantees have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the U.S. without registration or an applicable exemption from registration requirements.
This announcement follows the company's strategy to actively partner with clients in deploying assets that support the energy transition. With over $11 billion in managed assets, Hannon Armstrong focuses on investments that contribute positively to the climate.
The information in this article is based on a press release statement.
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