HASI prices $1 billion in green senior unsecured notes

NEW YORK - HA Sustainable Infrastructure Capital, Inc. (NYSE: HASI), a $3.33 billion market cap sustainable infrastructure investor with a notable 6.17% dividend yield, has priced $1 billion in green senior unsecured notes in a registered public offering, according to a press release statement issued Thursday. According to InvestingPro data, the company has maintained dividend payments for 13 consecutive years, showcasing its commitment to shareholder returns.

The offering consists of $600 million in 6.15% green senior unsecured notes due 2031 and $400 million in 6.75% green senior unsecured notes due 2034. At issuance, the notes will be guaranteed by several HASI subsidiaries, including Hannon Armstrong Sustainable Infrastructure, L.P. and Hannon Armstrong Capital, LLC.

Settlement of the notes is expected to occur on June 24, 2025, subject to customary closing conditions.

The company estimates net proceeds from the offering will be approximately $987.3 million after deducting underwriting discounts and offering expenses. HASI plans to use the proceeds to fund previously announced cash tender offers for a portion of its 3.375% Senior Notes due 2026 and 8.00% Green Senior Unsecured Notes due 2027, temporarily repay outstanding borrowings under its unsecured revolving credit facility, or repay borrowings under its commercial paper program.

The company stated it will use cash equal to the net proceeds to acquire, invest in or refinance eligible green projects, which may include projects with disbursements made during the twelve months preceding the issue date or projects with disbursements to be made within two years following the issue date.

Several financial institutions are acting as joint book-running managers for the offering, including Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and RBC Capital Markets, LLC.

HASI describes itself as an investor in sustainable infrastructure assets with more than $14 billion in managed assets across multiple classes, including utility-scale solar, onshore wind, storage, and energy efficiency. InvestingPro analysis indicates the company is currently undervalued, with analysts maintaining a bullish outlook and setting price targets up to $48 per share. Discover more detailed insights and 8 additional ProTips about HASI’s financial health and growth prospects through InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.

In other recent news, Hannon Armstrong Sustainable Infrastructure Capital Inc. (HASI) reported its first-quarter 2025 earnings, meeting analysts’ expectations with an adjusted EPS of $0.64 and surpassing revenue forecasts with $96.94 million. The company continues to project an 8-10% annual EPS growth through 2027, reaffirming its financial guidance. Concurrently, HASI’s subsidiaries launched a $500 million tender offer for outstanding notes, contingent upon raising sufficient funds through a public offering of senior debt securities. In a related development, S&P upgraded Hannon Armstrong’s credit rating to BBB-, marking the company as investment-grade across all major credit agencies. Analysts at Oppenheimer and BofA Securities maintained positive outlooks on HASI, with Oppenheimer reiterating an Outperform rating and a $48 target, while BofA raised its price target to $24, citing revenue growth expectations. The partnership between Hannon Armstrong and KKR was extended through 2026, expanding its investment capacity to $2.6 billion. These developments highlight the company’s strategic moves in the climate solutions sector, indicating robust growth and financial flexibility.

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