By Abigail W. Adams
Portland, Me., April 8 – Hannon Armstrong Sustainable Infrastructure Capital Inc. priced $200 million of 0% green exchangeable notes due 2025 with a redemption price of 110.15 for an accretion rate of 3.25% and an initial conversion premium of 32.5%, according to a company news release and a market source.
Pricing came in line with widened talk for a redemption price at maturity of 110.15 for an accretion rate of 3.25% and at the rich end of talk for an initial conversion premium of 30% to 32.5%, according to a market source.
Initial price talk was for a redemption price at maturity of 107.1 to 108.7, for a yield of 2.25% to 2.75% and an initial conversion premium of 35% to 40%.
Morgan Stanley & Co. LLC and Oppenheimer& Co. Inc. were bookrunners for the Rule 144A offering, which carries a greenshoe of $30 million.
The notes are non-callable for life.
The notes will be settled in shares upon an exchange with cash paid in lieu of fractional shares.
They are guaranteed by the company, Hannon Armstrong Sustainable Infrastructure, LP and Hannon Armstrong Capital, LLC.
Proceeds will be used to refinance new or existing eligible green projects.
Hannon Armstrong is an Annapolis, Md.-based climate solutions investor.
| Issuer: | Hannon Armstrong Sustainable Infrastructure Capital Inc.
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| Guarantors: | Hannon Armstrong Sustainable Infrastructure, LP and Hannon Armstrong Capital, LLC
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| Securities: | Green exchangeable senior notes
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| Amount: | $200 million
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| Greenshoe: | $30 million
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| Maturity: | 2025
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| Bookrunners: | Morgan Stanley & Co. LLC and Oppenheimer& Co. Inc.
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| Coupon: | 0%
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| Price: | Par
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| Redemption price: | 110.15
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| Accretion rate: | 3.25%
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| Exchange premium: | 32.5%
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| Exchange price: | $56.54
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| Conversion rate: | 17.6873
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| Call options: | Non-callable
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| Pricing date: | April 7
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| Settlement date: | April 13
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| Distribution: | Rule 144A
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| Talk: | Revised talk for redemption price at maturity of 110.15 for an accretion rate of 3.25% and an initial conversion premium of 30% to 32.5%; initial talk for a redemption price at maturity of 107.1 to 108.7 for a yield of 2.25% to 2.75% and an initial conversion premium of 35% to 40%
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| Stock symbol: | NYSE: HASI
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| Stock price: | $42.67 at market close April 7
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| Market capitalization: | $3.7 billion
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