Hannon Armstrong, unit enter into $115 million loan for wind projects

By Lisa Kerner

Charlotte, N.C., Oct. 22 – Hannon Armstrong Sustainable Infrastructure Capital, Inc. entered into a $115 million loan agreement on Oct. 15 with HA Wind I LLC, a newly formed subsidiary of the company, and Bank of America, NA, according to a form 8-K filed with the Securities and Exchange Commission.

The fixed-rate, amortizing non-recourse debt bears interest from the closing date through Oct. 22 at a rate per annum equal to the sum of the Libor daily floating rate plus 4.25% per annum and converts on Oct. 22 to a fixed rate of 5.74%.

Principal and interest are paid quarterly starting in March 2015, with a minimum principal payment amount equal to 0.5% of the principal amount of the loans plus additional principal payments based on available cash flow and a target debt balance.

The scheduled maturity date of the loan is Sept. 30, 2021, and the expected remaining debt balance to be repaid at maturity is $20.2 million, the filing stated.

There are customary events of default under the loan agreement, including an accrual of default interest at a rate of 7.74%.

Hannon Armstrong entered into the loan agreement as part of its $144 million investment in a portfolio of 10 operating wind projects owned by an affiliate of JP Morgan Chase & Co. that was announced on Oct. 20.

The transaction allows Hannon Armstrong to participate in the priority cash flows associated with the wind projects.

Hannon Armstrong is a specialty finance company based in Annapolis, Md., that provides debt and equity financing for infrastructure projects.

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