Hannon Armstrong Sustainable Infrastructure Capital (HASI), an investor in climate solutions, amended and extended its corporate unsecured credit facilities with a syndicate of banks. The committed capacity under the company’s CarbonCount-based revolving credit facility increased from $915 million to $1.25 billion, outstanding amounts under its CarbonCount-based term loan facility are $250 million, and the CarbonCount green commercial paper note program was increased from $100 million to $125 million, totaling $1.625 billion across the three facilities.
The revolving line of credit was extended by four years and will mature in 2028, the term loan A was extended for three years and will mature in 2027, and the green commercial paper note program was extended for two years and will mature in 2026. The applicable margins remain unchanged for all three bank facilities at 187.5 basis points for the revolving line of credit, 212.5 basis points for term loan A and 140 basis points for the green commercial paper note program. Each facility provides for interest rate reductions if HASI achieves certain levels of its CarbonCount metric on an annual basis. CarbonCount is a proprietary scoring tool for evaluating real assets to determine the efficiency by which each dollar of invested capital avoids annual carbon dioxide equivalent emissions.
“The upsize and term extension of our credit facilities simultaneously addresses a majority of our 2025 maturities and enhances the flexibility of our diversified funding platform,” Marc Pangburn, CFO of HASI, said. “A well-balanced platform of bank borrowings, unsecured debt and project debt allows us to maintain an opportunistic approach to debt financing.”
The revolving line of credit and term loan A includes a 14-bank syndicate led by J.P. Morgan as administrative agent, sustainability structuring agent and lead left arranger. BofA Securities is the dealer and green structuring advisor for the CarbonCount green commercial paper note program.
