Hannon Armstrong Prices Upsized $500 Million Green Bond and Convertible Offerings
Climate-change solutions investor Hannon Armstrong announced today that it has upsized its green bond offering of 3.75% senior unsecured notes due 2030 to $375 million, from the previously announced $350 million. The Company also announced the pricing of its underwritten public offering of $125 million aggregate principal amount of its 0% convertible senior notes due August 2023.
Hannon Armstrong stated the offering will be the first concurrent green convertible & high yield issue ever done.
The senior unsecured notes will be issued by Hannon Armstrong’s indirect subsidiaries, HAT Holdings I LLC (HAT I) and HAT Holdings II LLC (HAT II), and will be guaranteed by the Company, Hannon Armstrong Sustainable Infrastructure, L.P., and Hannon Armstrong Capital, LLC. The settlement of the Senior Unsecured Notes is expected to occur on August 25, 2020, subject to customary closing conditions. The Notes (as defined below) are expected to be rated BB+ by Standard & Poor’s Rating Services and Fitch Ratings.
According to Hannon Armstrong, the proceeds of the offering will be used acquire or refinance eligible green projects, which include assets that are neutral to negative on incremental carbon emissions. The company stated that it believes the notes meet the environmental eligibility criteria for green bonds as defined by the International Capital Market Association’s Green Bond Principles.
Morgan Stanley is acting as a sole book-running manager and Oppenheimer & Co. Inc. is acting as a co-manager for the offering of the Convertible Notes.