[8-K] HA Sustainable Infrastructure Capital, Inc. Reports Material Event

Rhea-AI Filing Summary

HA Sustainable Infrastructure Capital, Inc. (HASI) has issued $500,000,000 of 8.000% Green Junior Subordinated Notes due 2056 under an existing indenture. The company plans to use the net proceeds to temporarily repay borrowings under its unsecured revolving credit facility or commercial paper programs, then allocate an amount equal to the net proceeds to new or existing eligible green projects, with disbursements allowed from twelve months before to two years after the issue date.

The Notes pay 8.000% interest per year until June 1, 2031, then reset every five years to the Five-year U.S. Treasury Rate plus 4.301%, with a minimum rate of 8.000%, and interest is paid semi-annually starting June 1, 2026. HASI can defer interest, with deferred amounts accruing additional interest. The Notes are redeemable in several situations, including change of control, specified tax or rating agency events, and around the first reset date, and are subordinated to senior debt. They are initially guaranteed on a subordinated basis by certain affiliates, with guarantees terminating under defined conditions.

Insights

Corporate credit and capital structure analyst

HASI adds $500M long-dated, subordinated green debt at a fixed 8% coupon.

HA Sustainable Infrastructure Capital has issued $500,000,000 of junior subordinated notes due 2056, carrying an 8.000% coupon until the first reset on June 1, 2031. This provides sizable long-term funding while placing the new instrument structurally below senior debt, which can be viewed as closer to hybrid capital than traditional senior bonds.

After the first reset date, the rate floats every five years at the Five-year U.S. Treasury Rate plus 4.301%, but never below 8.000%, so interest costs remain relatively high even if benchmark rates fall. Provisions allowing interest deferral and step-up in coupon by 5% following an unredeemed Change of Control Event add complexity but are clearly defined.

Proceeds initially repay revolving credit facility or commercial paper balances and are then allocated to eligible green projects within the specified look-back and forward periods. Guarantees from several affiliates and multiple redemption options, including for tax and rating agency events, give structural detail but the overall impact on the company depends on how this capital supports future project growth and funding mix in subsequent periods.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported)

November 20, 2025

HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware		001-35877		46-1347456
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

One Park Place, Suite 200

Annapolis, Maryland 21401

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (410) 571-9860

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.01 par value per share		HASI		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.01. Entry into a Material Definitive Agreement.

Indenture and 8.000% Green Junior Subordinated Notes due 2056

On November 20, 2025, HA Sustainable Infrastructure Capital, Inc., a Delaware corporation (the “Company”), issued $500,000,000 aggregate principal amount of its 8.000% Green Junior Subordinated Notes due 2056 (the “Notes”), under an indenture, dated as of June 24, 2025 (the “Base Indenture”), between the Company, Hannon Armstrong Sustainable Infrastructure, L.P., a Delaware limited partnership (the “Operating Partnership”), Hannon Armstrong Capital, LLC, a Maryland limited liability company (“HAC”), HAT Holdings I LLC, a Maryland limited liability company (“HAT I”), HAT Holdings II LLC, a Maryland limited liability company (“HAT II” and, together with HAT I, the “Offerors”), HAC Holdings I LLC, a Delaware limited liability company (“HAC Holdings I”) and HAC Holdings II LLC, a Delaware limited liability company (“HAC Holdings II,” and collectively with the Operating Partnership, HAC, HAT I, HAT II and HAC Holdings I, the “Guarantors”), as guarantors, and U.S. Bank Trust Company, National Association, as trustee, as amended and supplemented pursuant to an Officer’s Certificate, dated November 20, 2025 (the “Officer’s Certificate” and, together with the Base Indenture, the “Indenture”).

The Company intends to use the net proceeds from the offering to (i) temporarily repay a portion of the outstanding borrowings under the Company’s unsecured revolving credit facility, or (ii) temporarily repay a portion of the outstanding borrowings under the Company’s commercial paper programs. The Company will use cash equal to the net proceeds from the offering of the Notes to acquire, invest in or refinance, in whole or in part, new and/or existing eligible green projects. These eligible green projects may include projects with disbursements made during the twelve months preceding the issue date of the offering of the Notes and projects with disbursements to be made within two years following the issue date. Prior to the full investment of an amount equal to such net proceeds in such eligible green projects, the Company intends to apply the net proceeds as set forth above and to invest any remaining net proceeds in interest-bearing accounts and short-term, interest-bearing securities.

The Notes bear interest (i) from and including November 20, 2025 to, but excluding, June 1, 2031 (the “First Reset Date”) at the rate of 8.000% per year and (ii) from and including the First Reset Date, during each Reset Period (as defined in the Indenture), at a rate per year equal to the Five-year U.S. Treasury Rate (as defined in the Indenture) as of the most recent Reset Interest Determination Date (as defined in the Indenture) plus a spread of 4.301%, to be reset on each Reset Date (as defined in the Indenture); provided, that the interest rate during any Reset Period will not reset below 8.000%. Subject to the Company’s right to defer interest payments as described in the Indenture, interest on the Notes will be paid semi-annually in arrears on each June 1 and December 1, commencing June 1, 2026.

Any deferred interest on the Notes will accrue additional interest at a rate equal to the interest rate then applicable to the Notes to the extent permitted by applicable law. Once the Company pays all deferred interest payments on the Notes, including any additional interest accrued on the deferred interest, the Company can again defer interest payments on the Notes as described above, but not beyond the maturity date of the Notes.

The following is a brief description of the terms of the Notes and the Indenture.

Change of Control

If a Change of Control Event (as defined in the Indenture) occurs and is continuing, the Company may redeem the Notes, in whole but not in part, at its option at a redemption price equal to 101% of the principal amount plus any accrued and unpaid interest thereon to, but excluding the date of redemption.

If the Company does not redeem the Notes following the occurrence of a Change of Control Event and has not given a redemption notice for any other specified reason, the interest rate on the Notes will increase by 5% per annum from and including the date on which the applicable notice of a Change of Control Event is sent to holders of Notes.

Optional Redemption

The Company may redeem the Notes in whole or in part on one or more occasions at a price equal to 100% of the principal amount being redeemed, plus accrued and unpaid interest to, but excluding, the redemption date (i) on any day in the period commencing on the date falling 90 days prior to the First Reset Date and ending on and including the First Reset Date and (ii) after the First Reset Date, on any interest payment date.

The Notes are redeemable, in whole, but not in part, at 100% of the principal amount of the Notes, plus accrued and unpaid interest to, but excluding, the redemption date, at any time following the occurrence and during the continuance of a Tax Event (as defined in the Indenture).

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The Notes are redeemable in whole, but not in part, at 102% of the principal amount of the Notes, plus accrued and unpaid interest to, but excluding, the redemption date, at any time following the occurrence and during the continuance of a Rating Agency Event (as defined in the Indenture) with respect to the Notes.

Guarantees

When the Notes are first issued they will be guaranteed solely by each of the Guarantors on a subordinated basis. None of the Company’s other current or future subsidiaries will be required to guarantee the Notes in the future.

Ranking

The Notes will:

• be subordinate and junior in right of payment to all existing and future senior indebtedness, guarantees and other liabilities of the Company;

• be effectively junior to the Company’s secured debt, to the extent of the value of the collateral securing such secured debt;

• be effectively junior to all debt and other liabilities of the Company’s subsidiaries from time to time outstanding (other than any pari passu debt and other liabilities of the Guarantors); and

• rank senior to all of the equity securities of the Company.

The guarantee from each Guarantor will:

• be subordinate and junior in right of payment to all existing and future senior indebtedness, guarantees and other liabilities; and

• be effectively junior to the Guarantors’ secured debt, to the extent of the value of the collateral securing such secured debt;

• be effectively junior to all debt and other liabilities of the Guarantors’ subsidiaries (other than any pari passu debt and other liabilities of subsidiaries that are Guarantors of the Notes) from time to time outstanding; and

• rank senior to all of the equity securities of the Guarantors.

The Notes (including the Guarantees), including the principal thereof and interest thereon, are subordinate and junior in right of payment to the Company’s and Guarantors’ obligations to holders of Senior Debt (as defined in the Indenture).

The Guarantors’ guarantees of the Notes and all other obligations of such Guarantor under the Indenture will automatically terminate and such Guarantor will automatically be released from all of its obligations under such guarantee and the Indenture under certain circumstances set forth in the Indenture, including if such Guarantor ceases or substantially contemporaneously ceases to (i) guarantee any Corporate Indebtedness (as defined in the Indenture) (other than the Notes) and (ii) have any outstanding Corporate Indebtedness issued by such Guarantor.

Covenants

The Indenture contains covenants that, subject to a number of exceptions and adjustments, among other things, impose certain requirements in order for the Company to merge or consolidate with or transfer all or substantially all of our assets to another person.

Events of Default

The Indenture also provides for Events of Default which, if any of them occurs, would permit or require the principal of and accrued and unpaid interest on all the outstanding Notes to become or to be declared due and payable.

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The preceding description is qualified in its entirety by reference to the Base Indenture and Officer’s Certificate, copies of which are attached as Exhibits 4.1 and 4.2 to this Current Report on Form 8-K and are incorporated herein by reference.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant.

The information required by this Item 2.03 relating to the Notes and the Indenture is contained in Item 1.01 above and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description
4.1		Indenture, dated as of June 24, 2025 by and among HA Sustainable Infrastructure Capital, Inc., as issuer, the guarantors party thereto and U.S. Bank Trust Company, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K (No. 001-35877), filed on June 24, 2025).
4.2		Indenture Officer’s Certificate pursuant to Section 2.02 of the Indenture, dated November 20, 2025 (including the form of HA Sustainable Infrastructure Capital, Inc.’s 8.000% Green Junior Subordinated Note due 2056).
5.1		Opinion of Clifford Chance US LLP (including consent of such firm)
8.1		Tax Opinion of Clifford Chance US LLP (including consent of such firm)
23.1		Consent of Clifford Chance US LLP (included in Exhibit 5.1)
23.2		Consent of Clifford Chance US LLP (included in Exhibit 8.1)
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

				HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC.
				By:		/s/ Steven L. Chuslo
Dated: November 20, 2025						Steven L. Chuslo
						Executive Vice President and Chief Legal Officer

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FAQ

What did HA Sustainable Infrastructure Capital (HASI) announce in this 8-K?

HASI announced it issued $500,000,000 aggregate principal amount of its 8.000% Green Junior Subordinated Notes due 2056 under an existing indenture.

How will HASI use the proceeds from the $500,000,000 green junior subordinated notes?

HASI plans to use the net proceeds to temporarily repay borrowings under its unsecured revolving credit facility or commercial paper programs, and then apply an amount equal to the net proceeds to eligible green projects, including projects with disbursements from twelve months before to two years after the issue date.

What are the interest rate terms on HASIs 8.000% Green Junior Subordinated Notes due 2056?

The Notes pay 8.000% interest per year from November 20, 2025 to, but excluding, June 1, 2031, and thereafter reset every five years to the Five-year U.S. Treasury Rate plus 4.301%, with the rate not falling below 8.000%. Interest is paid semi-annually on June 1 and December 1, starting June 1, 2026.

Can HASI redeem the 8.000% Green Junior Subordinated Notes early?

Yes. HASI may redeem the Notes at 100% of principal plus accrued interest during the 90 days before and on the first reset date and on any interest payment date thereafter. The Notes are also redeemable in whole at 100% upon a Tax Event and at 102% upon a Rating Agency Event, plus accrued interest.

What happens to the interest rate on HASIs notes if there is a Change of Control Event?

If a Change of Control Event occurs and HASI does not redeem the Notes, and no other redemption notice is given for specified reasons, the interest rate on the Notes increases by 5% per annum from and including the date the related notice is sent to holders.

How are HASIs 8.000% Green Junior Subordinated Notes ranked and guaranteed?

The Notes, including the guarantees, are subordinate and junior in right of payment to the obligations to holders of Senior Debt. They are initially guaranteed on a subordinated basis by specified guarantor affiliates, with guarantees automatically terminating under certain conditions described in the indenture.