ANNAPOLIS, Md., May 28, 2014 /PRNewswire/ -- Hannon
Armstrong Sustainable Infrastructure Capital, Inc. ("Hannon Armstrong," "we," "our" or the "company;"
NYSE: HASI), a leading sustainable infrastructure investor, today
announced the acquisition of a $107
million portfolio of land and payments from land leases
underlying wind and solar projects. HASI also entered into an
expansion of its existing credit facility, which provides for an
additional $200 million of capacity
and increased flexibility in terms.
"We have acquired high credit quality, long duration lease
streams that are senior to the project debt in some of the largest
solar and wind projects in the country," said Chief Executive
Officer Jeffrey Eckel. "This
portfolio diversifies our asset mix while moving us toward our 2014
financial targets and adds another platform for originating new
assets that fit well with our REIT structure."
Highlights
- Acquired more than 7,500 acres of land leased to three solar
projects with a value of approximately $60
million and the payments from 11 additional land leases for
a diversified portfolio of wind projects with a value of
approximately $27 million. In
addition, another portfolio of 46 smaller streams of payments from
land leases on wind projects was also purchased.
- The land and leases purchased support wind and solar projects
developed or owned by high credit quality entities, including
Southern Company, NRG Yield, First Solar and NextEra, with long
term investment grade power purchase agreements from utilities such
as SDG&E, PG&E, LADWP and SCE.
"Strategically, this transaction is a terrific fit: It adds high
credit quality assets at attractive risk-adjusted yields, grows our
near term pipeline and increases our capacity to add distributed
energy assets by expanding our REIT asset base," said Eckel. "In
addition to the long duration assets, we now will enjoy equity
upsides from long-term land ownership, all the while taking the
least risk in the project capital stack," added Eckel.
The Transaction
The transaction is structured as a purchase of American Wind
Capital Company, LLC with no debt, liabilities or employees.
Existing employees and management will form a new company named
AWCC Capital, LLC to originate additional transactions in which
HASI has a right of first refusal to purchase additional
transactions.
Expansion of Credit Facility
HASI has also expanded its existing credit facility by
increasing its overall capacity by $200
million. The new terms provide an increase in the maximum
borrowings allowed at any point in time in the project finance
facility from $150 million to
$250 million, and an increase in the
total maximum advances allowed under the facility from $700 million to $900
million. The amendment also expanded the eligibility
criteria to reflect current market opportunities in distributed
energy assets.
"The expansion of our credit facility, combined with our recent
equity offering, provides us with additional financial resources to
continue to grow our business," said Chief Financial Officer
Brendan Herron. "Aligning our credit
facility with the market opportunities is key to ensuring optimal
leverage in our capital structure."
About Hannon Armstrong
Hannon Armstrong makes debt and
equity investments in sustainable infrastructure projects. The
company focuses on profitable projects that increase energy
efficiency, provide cleaner energy, positively impact the
environment or make more efficient use of natural resources.
Hannon Armstrong targets projects
that have high credit quality obligors, fully contracted revenue
streams and inherent economic value.
The company, based in Annapolis,
Maryland, intends to elect and qualify to be taxed as a real
estate investment trust (REIT) for federal income-tax purposes,
commencing with its taxable year ended Dec.
31, 2013.
Forward Looking Statements
Some of the information contained in this press release are
forward-looking statements and within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. When used in this
press release, words such as "believe," "expect," "anticipate,"
"estimate," "plan," "continue," "intend," "should," "may,"
"target," or similar expressions, are intended to identify such
forward-looking statements. Forward-looking statements are subject
to significant risks and uncertainties. Investors are cautioned
against placing undue reliance on such statements. Actual results
may differ materially from those set forth in the forward-looking
statements. Factors that could cause actual results to differ
materially from those described in the forward-looking statements
include those discussed under the caption "Risk Factors" included
in our Annual Report on Form 10-K for our fiscal year ended
December 31, 2013, which was filed
with the U.S. Securities and Exchange Commission (SEC), as well as
in other reports that we file with the SEC.
Forward-looking statements are based on beliefs, assumptions
and expectations as of the date of this press release. We disclaim
any obligation to publicly release the results of any revisions to
these forward-looking statements reflecting new estimates, events
or circumstances after the date of this press release.
Investor Relations
410-571-6189
investors@hannonarmstrong.com
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SOURCE Hannon Armstrong Sustainable Infrastructure Capital,
Inc.