By Cristal Cody
Tupelo, Miss., Sept. 10 – Hannon Armstrong Sustainable Infrastructure Capital Inc. priced an upsized $150 million add-on to its 5¼% green eligible senior notes due July 15, 2024 on Tuesday at 104.875 to yield 4.127%, according to a market source.
The notes (BB+/BB+) priced with a spread of 255 basis points over Treasuries.
Initial price talk was in the 104.75 to 105 area.
The deal was upsized from $100 million.
The notes were issued via indirect subsidiaries HAT Holdings I LLC and HAT Holdings II LLC.
Wells Fargo Securities LLC was the left bookrunner of the Rule 144A and Regulation S transaction. Joint bookrunners were BofA Securities Inc. and J.P. Morgan Securities LLC.
The issue originally priced in a $350 million Rule 144A and Regulation S for life transaction on June 26 at par to yield a spread of 345 bps over Treasuries. The total outstanding is now $500 million.
Proceeds will be used to pay down existing secured borrowings and for general corporate purposes, including new investments in eligible green projects.
Hannon Armstrong is an Annapolis, Md.-based mortgage real estate investment trust.
| Issuers: | HAT Holdings I LLC/HAT Holdings II LLC
|
| Amount: | $150 million reopening
|
| Description: | Green senior notes
|
| Maturity: | July 15, 2024
|
| Bookrunners: | Wells Fargo Securities LLC (left), BofA Securities Inc. and J.P. Morgan Securities LLC
|
| Coupon: | 5¼%
|
| Price: | 104.875
|
| Yield: | 4.127%
|
| Spread: | Treasuries plus 255 bps
|
| Call features: | Make-whole call before July 15, 2021 at Treasuries plus 50 bps; on or after July 15, 2021 at 102.625, July 15, 2022 at 101.313 and July 15, 2023 and thereafter at par
|
| Equity clawback: | Up to 40% of principal before July 15, 2021 at 105.25
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 10
|
| Settlement date: | Sept. 12
|
| Ratings: | S&P: BB+
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 104.75-105 area
|
| Total outstanding: | $500 million, including $350 million of notes priced June 26 at par to yield a spread of 345 bps over Treasuries
|
| Marketing: | Investor calls
|
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