ANNAPOLIS, Md., Dec. 17, 2018 /PRNewswire/ -- Hannon Armstrong
Sustainable Infrastructure Capital, Inc. ("Hannon Armstrong," "we", "our", or the
"Company") (NYSE: HASI) announced today the closing of two new
senior secured revolving credit facilities among certain of its
subsidiaries, as borrowers, Bank of America, N.A., as
administrative agent, and various lenders party thereto on
December 13, 2018. The two credit
facilities combined provide for $450
million in new borrowing capacity. Certain of the
Company's subsidiaries repaid in full $253
million of borrowings under the existing credit facilities
using the proceeds from the new facility. All commitments under the
existing credit facilities were cancelled and the existing credit
facilities and related agreements and documents were
terminated.
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"As part of our long-term financing strategy, these new credit
facilities lower the cost and increase the flexibility of our main
credit facility while extending the maturity until 2023," said
Brendan Herron, Chief Financial
Officer. "We believe the combination of the market activity
described on our Q3 earnings call along with these credit
facilities and the recently completed equity raise positions us
well for 2019."
On December 13, 2018, the Company
through certain of its subsidiaries entered into two new senior
secured revolving credit facilities with Bank of America, N.A. as
administrative agent, and the various lenders party thereto. The
credit facilities are comprised of two loan agreements, a
representation-based loan agreement (the "Rep-Based Loan
Agreement") and an approval-based loan agreement (the
"Approval-Based Loan Agreement," and, together with the Rep-Based
Loan Agreement, the "Loan Agreements"). The Loan Agreements provide
(a) in the case of the Rep-Based Loan Agreement, for a senior
secured revolving limited-recourse credit facility in the principal
amount of $250 million and (b) in the
case of the Approval-Based Loan Agreement, for a senior secured
revolving recourse credit facility in the principal amount of
$200 million. The maturity of each of
the Loan Agreements is July 19, 2023.
Loans under the Rep-Based Loan Agreement bear interest at a rate
equal to one- month LIBOR plus 1.40% or 1.85% (depending on the
type of collateral) or, in certain circumstances, the Federal Funds
Rate plus 0.40% or 0.85% (depending on the type of collateral) and
loans under the Approval-Based Loan Agreement bear interest at a
rate equal to one-month LIBOR plus 1.50% or 2.00% (depending on the
type of collateral) or, under certain circumstances, the Federal
Funds Rate plus 0.50% or 1.00% (depending on the type of
collateral). The Company, together with its subsidiary, Hannon
Armstrong Capital, LLC, guaranteed the obligations of the borrowers
under each of the Loan Agreements pursuant to (i) a Limited
Guaranty (Rep-Based) and (ii) a Guaranty (Approval-Based)
(together, the "Guaranty Agreements").
Inclusion of any financings of the Company in the borrowing base
as collateral under the Rep-Based Loan Agreement will be subject to
the Company making certain agreed upon representations and
warranties, the accuracy of such which will be guaranteed under the
Limited Guaranty (Rep-Based). Payment by the borrowers of certain
amounts relating to any such financing included in the borrowing
base of the Rep-Based Loan Agreement, which amounts are guaranteed
under the Limited Guaranty (Rep-Based), is the exclusive remedy
with respect to any breach of such representations and warranties
under the Rep-Based Loan Agreement. Inclusion of any financings of
the Company in the borrowing base as collateral under the
Approval-Based Loan Agreement will be subject to the approval of a
super majority of the lenders. The amount eligible to be drawn
under the facilities is based on a discount to the value of each
included investment based upon the type of collateral or an
applicable valuation percentage. The sum of included financings
after taking into account the applicable valuation percentages and
any changes in the valuation of the financings in accordance with
the Loan Agreements determines the borrowing capacity, subject to
the overall facility limits described above. For further
details on the new credit facilities, please refer to our Current
Report on Form 8-K, filed with the SEC on December 17, 2018.
About Hannon Armstrong
With over 30 years of experience, Hannon
Armstrong (NYSE: HASI) is a capital provider focused on
reducing the impact of, or increasing resiliency to, climate
change. Our portfolio includes efficiency, renewable energy
and resiliency assets with a focus on long-term, recurring and
largely predictable cash flows or cost savings from proven
technologies. With scientific consensus that climate warming
trends are linked to human activities, we believe our firm is well
positioned to generate better risk-adjusted returns by investing in
the assets that reduce carbon emissions. We are based in
Annapolis, MD.
Forward-Looking Statements
Some of the information in this press release contains
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 the Company's Annual Report on Form 10-K for the fiscal year
ended December 31, 2017, which was
filed with the SEC, as well as in other reports that the Company
files with the SEC.
Forward-looking statements are based on beliefs, assumptions
and expectations as of the date of this press release. The Company
disclaims 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.
Contact: Investor/Media Relations
Phone:
410-571-6189
Email: investors@hannonarmstrong.com
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SOURCE Hannon Armstrong Sustainable Infrastructure Capital,
Inc.