In a strategic corporate maneuver, HA Sustainable Infrastructure Capital, Inc., previously known as Hannon Armstrong (NYSE:HASI) Sustainable Infrastructure Capital, Inc., has officially changed its state of incorporation from Maryland to Delaware, effective Tuesday, July 2, 2024. This move was ratified by stockholder vote at the company's annual meeting on June 6, 2024, following a detailed proposal outlined in the definitive proxy statement filed with the SEC on April 15, 2024.
The transition to Delaware, a state known for its business-friendly legal environment, was executed through a Plan of Conversion. This shift entails the adoption of Delaware's General Corporation Law, a new Certificate of Incorporation, and bylaws that will now govern the company's operations. The company's common stock, traded on the New York Stock Exchange under the ticker HASI, remains unaffected in terms of its capitalization, with each share of the Maryland corporation seamlessly converting to an equivalent share of the newly established Delaware entity.
As part of the reincorporation, the company also implemented Charter Tax Benefit Provisions, intended to supersede the Tax Benefits Preservation Plan that was terminated on July 1, 2024. These provisions are designed to maintain the company's tax benefits post-reincorporation. Additionally, all of the company's previous equity incentive plans and the positions of its directors and officers continue unchanged in the new structure.
Concurrently, the company has amended its At Market Issuance Sales Agreement to reflect the reincorporation and the change in company name. This amendment ensures continuity in the company's ability to offer shares of common stock up to an aggregate value of $500 million.
This corporate restructuring is intended to be neutral from a stockholder's perspective regarding their holdings, and the company will continue to fulfill its reporting obligations with the SEC. The information provided is based on the company's recent SEC filing.
In other recent news, Hannon Armstrong Sustainable Infrastructure Capital has priced a $700 million green senior unsecured notes offering due in 2034. The net proceeds, estimated at approximately $688 million, are intended for the repayment of outstanding borrowings and to finance eligible green projects. In a strategic move, Hannon Armstrong has also announced a $2 billion partnership with KKR, forming CarbonCount Holdings 1 and committing $1 billion each.
TD Cowen has raised Hannon Armstrong's price target from $35.00 to $40.00, maintaining a Buy rating on the stock. This follows a detailed analysis of the company's first quarter 10Q filing and the recent partnership announcement. On the other hand, Citi has adjusted Hannon Armstrong's price target to $8.30 from the previous $8.50, while still maintaining a Buy rating.
China-based Hesai Group, a lidar manufacturer, has initiated legal action against the U.S. government, challenging its inclusion on a Department of Defense list that suggests ties to the Chinese military. Hesai asserts that the majority of its ownership lies outside of China and that its products are designed for commercial and civilian use only. These are the recent developments in the companies.
InvestingPro Insights
In light of HA Sustainable Infrastructure Capital's recent reincorporation, a review of the company's financial health and stock performance can provide valuable context for investors. According to InvestingPro data, HASI boasts a solid market capitalization of $3.3 billion, with an attractive P/E ratio of 12.41, and has experienced significant revenue growth of 35.19% over the last twelve months as of Q1 2024. This growth is further underscored by a quarterly revenue increase of 39.73% in Q1 2024. Additionally, the company's dividend yield stands at a robust 5.87%, reflecting a commitment to returning value to shareholders.
InvestingPro Tips suggest that HASI's consistent dividend growth, having raised its dividend for 5 consecutive years and maintained payments for 12 consecutive years, may appeal to income-focused investors. Moreover, the company's liquid assets exceed its short-term obligations, indicating a strong liquidity position. While analysts have revised their earnings expectations downwards for the upcoming period, it's worth noting that HASI's stock price movements have been quite volatile recently, and the Relative Strength Index (RSI) suggests the stock is currently in oversold territory.
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