HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI) has amended its existing credit agreement, expanding its financial flexibility. The amendment, effective as of September 10, 2024, transitions the obligations from the original borrowers to the company itself.
Under the terms of the amendment, HA Sustainable Infrastructure Capital, as the successor borrower, has assumed all obligations of the original borrowers under the credit agreement.
The original borrowers have been released as borrowers but will continue to guarantee the company's obligations. This strategic financial restructuring enhances the company's capital structure and supports its ongoing operations.
The amendment relates to the company's $1.25 billion, 4-year unsecured CarbonCount®-based revolving credit facility. JPMorgan Chase (NYSE:JPM) Bank, N.A. serves as the administrative agent, sole bookrunner, and sustainability structuring agent for the facility.
Additional joint lead arrangers include Citibank, N.A., Credit Agricole (OTC:CRARY) Corporate and Investment Bank, and several others. Bank of America, N.A., Barclays Bank PLC, and Goldman Sachs Bank USA are documentation agents.
HA Sustainable Infrastructure Capital, originally known as Hannon Armstrong (NYSE:HASI) Sustainable Infrastructure Capital, Inc., specializes in real estate investment trusts focused on sustainable infrastructure. The company's headquarters are located in Annapolis, Maryland.
In other recent news, Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) reported robust second-quarter results for 2024, showing a 19% year-over-year growth in adjusted EPS and a 16% increase in adjusted net investment income.
The company confirmed its guidance for an 8-10% growth in adjusted earnings per share from 2024 to 2026. HASI's investments in renewable energy have significantly expanded, reaching 10 gigawatts in solar and wind capacity and 6 million MMBTUs in renewable natural gas projects. Managed assets have seen a notable increase of over 80% since 2020, hitting $13 billion by the end of Q2 2024.
In other recent developments, Jefferies initiated coverage on Hannon Armstrong with a Buy rating, highlighting the company’s potential for compounding growth.
RBC Capital also initiated coverage of HASI with an Outperform rating, recognizing the company's resilient business model and potential for growth. Both firms noted HASI's collaborations with energy project developers, owners, operators, utilities, and energy service companies as a cornerstone of its strategy.
The company's strategic partnership with KKR in their CCH1 $2 billion initiative was also highlighted. These are all recent developments that investors should take into account.
InvestingPro Insights
In light of HA Sustainable Infrastructure Capital, Inc.'s recent credit agreement amendment, certain metrics and tips from InvestingPro can provide investors with a deeper understanding of the company's financial position. The company's market capitalization stands at $4.09 billion, indicating its substantial presence in the industry. A noteworthy InvestingPro Tip is that HA Sustainable Infrastructure Capital has raised its dividend for 5 consecutive years, demonstrating a commitment to returning value to shareholders. Additionally, the company's P/E ratio is currently 14.84, which can be a useful indicator for investors assessing the company's valuation relative to its earnings.
InvestingPro Data also shows a robust revenue growth of 31.06% over the last twelve months as of Q2 2024, suggesting that the company is expanding its financial base. This growth could be particularly relevant considering the company's strategic financial restructuring. Furthermore, the dividend yield as of July 2024 is 4.79%, which may be attractive to income-focused investors. Lastly, HA Sustainable Infrastructure Capital's stock has experienced significant returns, with a 52.1% one-year price total return as of the date provided, highlighting the potential for shareholder gains.
For those interested in detailed analysis and additional insights, InvestingPro offers more tips on HA Sustainable Infrastructure Capital. Visit InvestingPro for a comprehensive list of tips to help guide your investment decisions regarding HASI.
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