HASI subsidiaries launch $500 million tender offer for outstanding notes

Published 12/06/2025, 14:34
HASI subsidiaries launch $500 million tender offer for outstanding notes

ANNAPOLIS, Md. - HA Sustainable Infrastructure Capital, Inc.’s (NYSE: HASI), a $3.32 billion market cap company with a strong dividend track record spanning 13 consecutive years, announced that its subsidiaries HAT Holdings I LLC and HAT Holdings II LLC launched a cash tender offer to purchase up to $500 million of outstanding notes, according to a press release statement issued Thursday. According to InvestingPro data, the company maintains healthy liquidity with a current ratio of 4.4x.

The tender offer targets two series of notes: the 3.375% Senior Notes due 2026 with a $250 million series cap and the 8.00% Green Senior Unsecured Notes due 2027 with no series cap. The notes will be purchased according to priority levels, with the 2026 notes having higher priority. The company’s stock has shown strong momentum recently, posting a 9% return over the past week, as reported by InvestingPro.

The offer expires on July 14, 2025, with an early tender deadline of June 26, 2025. Noteholders who tender before the early deadline will receive the total tender offer consideration, which includes a $30 per $1,000 premium. Those tendering after the early deadline will receive the late tender offer consideration without the premium.

The purchase price will be determined on June 27, 2025, based on a fixed spread over U.S. Treasury securities. Early settlement is expected on June 30, 2025, with final settlement on July 16, 2025.

The tender offer is contingent upon HASI raising sufficient funds through a concurrent public offering of senior debt securities. J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are serving as dealer managers for the offer.

HASI describes itself as an investor in sustainable infrastructure assets with more than $14 billion in managed assets across utility-scale solar, onshore wind, storage, distributed solar and storage, renewable natural gas, and energy efficiency. The company currently offers a substantial 6.19% dividend yield and appears undervalued according to InvestingPro’s Fair Value analysis. Discover more insights about HASI and other sustainable infrastructure companies with InvestingPro’s comprehensive research reports, covering over 1,400 US stocks.

In other recent news, Hannon Armstrong reported its Q1 2025 earnings, meeting analysts’ expectations with an adjusted EPS of $0.64 and surpassing revenue forecasts by posting $96.94 million. The company recorded over $700 million in new investments during this period, reaffirming its guidance for 8-10% annual EPS growth through 2027. In addition, Hannon Armstrong and KKR have extended their CCH1 co-investment partnership through November 2026, expanding investment capacity to $2.6 billion. On the credit rating front, S&P upgraded Hannon Armstrong’s corporate and issuer credit ratings to BBB-, aligning it with Moody’s and Fitch, which have also rated it as investment-grade. Oppenheimer reiterated its Outperform rating with a $48.00 price target, citing the company’s strong start to the year and successful capital-light investment strategy. BofA Securities raised its price target for Hannon Armstrong to $24.00 while maintaining a Buy rating, reflecting positive expectations for revenue growth. These developments highlight Hannon Armstrong’s strategic positioning and financial flexibility in the climate solutions investment sector.

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