Hannon Armstrong to price $100 million tap of 8% green notes in Tuesday drive-by

By Paul A. Harris

Portland, Ore., Jan. 9 – Hannon Armstrong Sustainable Infrastructure Capital, Inc. (unsecured ratings Baa3/BB+/BB+) plans to price a $100 million add-on to the HAT Holdings I LLC and HAT Holdings II LLC 8% green senior notes due June 15, 2027 in a Tuesday drive-by, according to market sources.

Initial price talk is 102.25 to 102.5, a trader said.

The Rule 144A and Regulation S bullet notes are covered by a make-whole call at Treasuries plus 50 basis points until one month prior to maturity, whereupon they become callable at par. They feature a 40% equity clawback at 108 until March 15, 2027. They also feature a 101 poison put.

BofA Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SMBC Nikko Securities America Inc. and Citigroup Global Markets Inc. are the joint bookrunners.

Mizuho Securities USA Inc., M&T Securities Inc. and Truist Securities Inc. are the co-managers.

Proceeds are intended to be allocated to acquire, invest in or refinance, in whole or in part, new and/or existing eligible green projects, and for general corporate purposes.

Hannon Armstrong is an Annapolis, Md.-based energy efficiency, renewable energy, and sustainable infrastructure investment company.

The original $550 million issue priced on Dec. 4, 2023.

The add-on notes are to immediately become fungible with the original notes.

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