DBRS Finalizes Provisional Rating on Hannon Armstrong’s Convertible Sr Notes at BBB (low), Stb Trend

DBRS, Inc. (DBRS) has finalized its provisional rating of BBB (low) to the $135 million 4.125% Convertible Senior Notes due September 2022 (the Convertible Senior Notes or the Notes) of Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI or the Company). The trend on the Notes is Stable.

The Convertible Senior Notes are unsecured and unsubordinated obligations of HASI and bear interest at a fixed rate of 4.125%, payable semi-annually. The Convertible Senior Notes rank pari passu with all of the Company’s future unsecured and unsubordinated debt obligations. HASI plans to use the net proceeds of this offering to repay outstanding borrowings under one or both of its senior secured revolving credit facility and its recourse credit facility or for general corporate purposes.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are Global Methodology for Rating Finance Companies (October 2016) and Global Methodology for Rating Banks and Banking Organisations (May 2017), which can be found on our website under Methodologies.

The primary sources of information used for this rating include company documents and SNL Financial. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

Lead Analyst: David Laterza, Senior Vice President, Head of U.S. Non-Bank Financials, Global FIG
Rating Committee Chair: Michael Driscoll, Managing Director, Head of North American FIG, Global FIG
Initial Rating Date: August 15, 2017
Last Rating Date: August 15, 2017

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.