By Paul A. Harris
Portland, Ore., Aug. 18 – Hannon Armstrong Co. priced an upsized $375 million issue of 3¾% 10-year senior green notes (BB+/BB+) at 99 to yield 3.871% in a Tuesday drive-by, according to market sources.
The issue size increased from $350 million.
The yield came tight to yield talk in the 4% area. Initial talk was in the low 4% area.
Bookrunner Morgan Stanley & Co. LLC will bill and deliver.
The notes were sold via HAT Holdings I LLC and HAT Holdings II LLC.
The Annapolis, Md.-based company plans to use proceeds from the Rule 144A and Regulation S deal to acquire or refinance, in whole or in part, eligible green projects, which include assets that are neutral to negative on incremental carbon emissions.
Hannon Armstrong is an investor in climate change solutions and provider of capital to companies in the energy efficiency, renewable energy, and other sustainable infrastructure markets.
| Issuer: | HAT Holdings I LLC and HAT Holdings II LLC
|
| Amount: | $375 million, increased from $350 million
|
| Maturity: | Sept. 15, 2030
|
| Securities: | Senior green-eligible notes
|
| Bookrunner: | Morgan Stanley & Co. LLC
|
| Coupon: | 3¾%
|
| Price: | 99
|
| Yield to maturity: | 3.871%
|
| Spread: | 321 bps
|
| Call protection: | Non-callable
|
| Trade date: | Aug. 18
|
| Settlement date: | Aug. 25
|
| Ratings: | S&P: BB+
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 4% area
|
| Marketing: | Drive-by
|
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