Bank of America acted as an administrative agent on $450 million in credit facilities for Hannon Armstrong Sustainable Infrastructure Capital, a capital provider focused on reducing the impact of climate change.
Certain of the company’s subsidiaries repaid in full $253 million of the borrowings under their existing credit facilities using the proceeds from the new facility. All commitments, related agreements and documents under the existing facilities were cancelled.
“As part of our long-term financing strategy, these new credit facilities lower the cost and increase the flexibility of our main credit facility while extending the maturity until 2023,” said Brendan Herron, Hannon Armstrong chief financial officer. “We believe the combination of the market activity described on our Q3 earnings call along with these credit facilities and the recently completed equity raise positions us well for 2019.”
The new credit facilities are comprised of two loan agreements, a representation-based loan agreement for a $250 million senior secured revolving limited-recourse credit facility and an approval-based loan agreement for a $200 million senior secured revolving recourse credit.
Both agreements mature on July 19, 2023. Loans under the rep-based agreement bear interest at a rate equal to one-month LIBOR plus 1.40% or 1.85% (depending on the type of collateral) or, in certain circumstances, the Federal Funds Rate plus 0.40% or 0.85%. Loans under the approval-based agreement bear interest at a rate equal to one-month LIBOR plus 1.50% or 2.00% or, under certain circumstances, the Federal Funds Rate plus 0.50% or 1.00%.
Hannon Armstrong, together with its subsidiary, Hannon Armstrong Capital, guaranteed the obligations of the borrowers under each of the loan agreements pursuant to a limited guaranty (rep-based) and a guaranty (approval-based).