ANNAPOLIS, Md. - Hannon Armstrong (NYSE:HASI) Sustainable Infrastructure Capital, Inc. (NYSE: HASI), an investment firm focused on climate solutions, announced today that it has expanded and extended its unsecured credit facilities, reaching a total capacity of $1.625 billion.
The amendment includes an increase of its revolving credit facility from $915 million to $1.25 billion, a maintenance of the $250 million term loan, and an expansion of its green commercial paper program from $100 million to $125 million.
The extensions of the credit lines enhance the company's financial flexibility, with the revolving line of credit now maturing in 2028, the term loan A in 2027, and the green commercial paper program in 2026.
The interest rates for these facilities remain unchanged, but they include provisions for reductions if the company achieves certain benchmarks related to its CarbonCount metric, which measures the carbon emission efficiency of its investments.
Marc Pangburn, Chief Financial Officer of HASI, stated that this strategic financial move not only addresses upcoming 2025 maturities but also strengthens their diversified funding approach, which includes a mix of bank borrowings, unsecured debt, and project debt.
The 14-bank syndicate involved in the credit facilities is led by J.P. Morgan, acting as the administrative agent and sustainability structuring agent, with BofA Securities serving as the dealer and green structuring advisor for the green commercial paper program.
HASI's investment strategy is to fund projects that have a neutral to negative impact on carbon emissions or offer other environmental benefits, such as reduced water consumption. The company uses its proprietary CarbonCount tool to track and report the impact of its investments, promoting transparency and comparability in infrastructure project finance.
The announcement is based on a press release statement and follows the company's commitment to supporting the transition to sustainable energy. HASI manages over $12 billion in assets and aims to ensure that each investment contributes positively to the climate.
InvestingPro Insights
Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) has recently made strategic moves to enhance its financial flexibility, which is reflected in the company's robust financial metrics. According to InvestingPro Data, HASI boasts a market capitalization of approximately $2.8 billion and an attractive price-to-earnings (P/E) ratio of 17.01, adjusted to 18.71 for the last twelve months as of Q4 2023. This indicates a reasonable valuation relative to the company's earnings.
Moreover, HASI's revenue growth is impressive, with a 23.03% increase over the last twelve months and an even more substantial quarterly surge of 72.76% in Q4 2023.
For investors seeking income-generating assets, HASI has a commendable track record, having raised its dividend for 5 consecutive years, and maintained dividend payments for 12 consecutive years, as highlighted by InvestingPro Tips.
These consistent dividend payouts, coupled with a high dividend yield of 6.88%, make HASI an attractive option for dividend investors. Additionally, the stock has experienced a large price uptick over the last six months, with a total return of 37.6%, demonstrating the company's strong performance in the market.
Investors interested in further insights can find additional InvestingPro Tips on HASI, including the company's profitability predictions for this year and its strong return over the last decade. For those looking to delve deeper into HASI's financials and stock performance, InvestingPro offers a wealth of tips—9 more to be precise.
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