Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE: HASI) has launched a private offering of $200 million in aggregate initial principal amount of 0.00% green exchangeable senior notes due 2025 (the Notes). The company has launched the offering through its indirect subsidiaries, HAT Holdings I LLC and HAT Holdings II LLC.
It has been disclosed that holders will get several shares of the Company's common stock equal to the product of the total initial principal amount of Notes to be exchanged, divided by $1,000, and the applicable exchange rate, plus cash in place of fractional shares, upon any exchange of the Notes. The Notes will not pay regular interest and will accrue principal at a rate that offers holders a cumulative yield to maturity that will be decided at pricing.
Certain registration rights will be granted to the shares of the Company's common stock issued in exchange for the Notes. The Issuers additionally intend to give the first buyers of the Notes the option to buy up to $30 million in additional total initial principal amount of the Notes during the 13 days beginning on and including the first date on which the Notes are issued.
Furthermore, the net profit of this offering will be used by the Company to acquire or refinance, in whole or in part, new and/or existing qualifying green projects, which include assets that are carbon-neutral to carbon-negative. Furthermore, these approved green projects may include those with payments made in the twelve months before the issuance date of the Notes as well as those with payments scheduled after the issue date.
Additionally, before fully investing such net profits, the Company planned to invest them in interest-bearing accounts and short-term, interest-bearing securities, which are compatible with the Company's desire to maintain its REIT status.