HAT Holdings I LLC and HAT Holdings II LLC, which are indirect subsidiaries of Hannon Armstrong Sustainable Infrastructure Capital Inc., issued on Sept. 12 an additional $150 million aggregate principal amount of 5.25% unsecured senior notes due 2024.
The notes, which were issued in a private offering, form part of the same series as the company's existing 5.25% unsecured senior notes due 2024.
The additional notes were priced at 104.875% of the principal amount plus interest deemed to have accrued since July 2, with a yield to maturity of 4.13% and a yield to worst of 3.86%. Net proceeds of the offering were approximately $155 million, excluding amounts for accrued interest.
As previously disclosed, Hannon Armstrong Sustainable Infrastructure Capital intends to use the net proceeds to acquire or refinance eligible green projects, which include assets that are neutral to negative on incremental carbon emissions.
Prior to the full investment of such net proceeds, the company plans to apply the proceeds to repay a portion of the outstanding revolving borrowings under its two senior secured credit facilities. Any net proceeds not used to repay these credit facilities will be invested in interest-bearing accounts and short-term, interest-bearing securities which are consistent with the company's intention to continue to qualify for taxation as a real estate investment trust.
