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Hannon Armstrong prices upsized add-on offering of senior unsecured notes

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Hannon Armstrong prices upsized add-on offering of senior unsecured notes

Hannon Armstrong Sustainable Infrastructure Capital Inc. priced its upsized private offering of $150 million of 5.25% senior unsecured notes due 2024 by its indirect subsidiaries HAT Holdings I LLC and HAT Holdings II LLC.

The notes have been 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%. The settlement of these securities is expected to occur on or about Sept. 12.

The notes will be part of the same series as the company's existing 5.25% senior unsecured notes due 2024. Hannon Armstrong Sustainable Infrastructure Capital believes the notes meet the environmental eligibility criteria for green bonds as defined by the International Capital Market Association's Green Bond Principles.

The company intends to use the net proceeds of the offering 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, Hannon Armstrong Sustainable Infrastructure Capital intends 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 REIT.

At issuance, the notes will be guaranteed by Hannon Armstrong Sustainable Infrastructure Capital, Hannon Armstrong Sustainable Infrastructure LP and Hannon Armstrong Capital LLC.