By Paul A. Harris
Portland, Ore., June 26 – Hannon Armstrong Sustainable Infrastructure Capital Inc. priced an upsized $350 million issue of green eligible five-year senior notes (BB+/BB+) at par to yield 5¼% on Wednesday, according to a syndicate source.
The issue size increased from $300 million.
The yield came 12.5 basis points inside of yield talk in the 5½% area.
Wells Fargo Securities LLC was the left bookrunner. Joint bookrunners were BofA Securities Inc. and J.P. Morgan Securities LLC.
The Annapolis, Md.-based mortgage real estate investment trust plans to use the proceeds to pay down its existing secured borrowings and for general corporate purposes, including new investments in green eligible projects. The additional proceeds resulting from the $50 million upsizing of the deal will be used as cash on the balance sheet.
The issuing entities are HAT Holdings I LLC and HAT Holdings II LLC, indirect subsidiaries of Hannon Armstrong.
Hannon Armstrong invests in climate change solutions by providing capital to the leading companies in the energy efficiency, renewable energy and other sustainable infrastructure markets.
| Issuers: | HAT Holdings I LLC and HAT Holdings II LLC
|
| Amount: | $350 million, increased from $300 million
|
| Maturity: | July 15, 2024
|
| Securities: | Green eligible senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | BofA Securities Inc. and J.P. Morgan Securities LLC
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 345 bps
|
| First call: | July 15, 2021 at 102.625
|
| Trade date: | June 26
|
| Settlement date: | July 2
|
| Ratings: | S&P: BB+
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5½% area
|
| Marketing: | Roadshow
|
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