By Paul A. Harris
Portland, Ore., June 14 – Hannon Armstrong Sustainable Infrastructure Capital, Inc. priced an upsized $1 billion issue of five-year senior bullet notes (BB+) at par to yield 3 3/8% in a Monday drive-by, according to market sources.
The issue size increased from $750 million.
The deal was heard to be playing to $1.3 billion of demand on Monday afternoon.
The yield printed at the tight end of yield talk in the 3½% area. Initial guidance was in the 3¾% area.
J.P. Morgan Securities LLC managed the notes sale.
Proceeds will be used to redeem the HAT Holdings 5¼% senior notes due 2024, which are green bonds.
Following the redemption, the company intends to use the incremental proceeds to acquire or refinance, in whole or in part, eligible green projects.
The prospective issuer is an Annapolis, Md.-based company that invests in energy efficiency, renewable energy, and other sustainable infrastructure markets.
| Issuers: | HAT Holdings I LLC and HAT Holdings II LLC
|
| Amount: | $1 billion, increased from $750 million
|
| Maturity: | June 15, 2026
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| Securities: | Senior notes
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| Lead: | J.P. Morgan Securities LLC
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| Coupon: | 3 3/8%
|
| Price: | Par
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| Yield: | 3 3/8%
|
| Spread: | 259 bps
|
| Call protection: | Non-callable
|
| Trade date: | June 14
|
| Settlement date: | June 28
|
| Rating: | S&P: BB+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 3½% area
|
| Marketing: | Drive-by
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