HA Sustainable Infrastructure Capital Boosts Credit Facilities to $2.65 Billion with Extended Terms and Sustainability-Linked Pricing

Refinancing Enhances Liquidity and Extends Debt Maturity Profile

HA Sustainable Infrastructure Capital has executed two new credit facilities significantly enhancing its financial flexibility. The $2.25 billion revolving credit facility increases borrowing capacity by $425 million compared to the prior $1.825 billion facility from April 2024 and extends maturity to July 2031, adding three years beyond the previous April 2028 maturity. This structure supports both near-term operational funding and long-term capital planning for the sustainable infrastructure company.

The refinancing involves 18 relationship banks, all participants in the prior facility, demonstrating strong lender confidence. JPMorgan Chase Bank, N.A. serves as administrative agent, sole bookrunner, sustainability structuring agent, and lead arranger. Other documentation agents include Citibank, N.A., Cof6peratieve Rabobank U.A., Credit Agricole Corporate and Investment Bank, ING Capital LLC, Mizuho Bank, Ltd., Morgan Stanley Senior Funding, Inc., Royal Bank of Canada, Sumitomo Mitsui Banking Corporation, and Truist Bank.

Lower Borrowing Costs Through Interest Rate Spread Reductions

The new revolving credit facility offers improved pricing with a spread of 157.5 basis points plus Term SOFR on drawn amounts, down from 167.5 basis points previously. This 10 basis point reduction, combined with the elimination of a prior 10 basis point uplift, results in meaningful interest savings. The commitment fee on undrawn amounts also decreased from 29.5 to 27 basis points.

The $400 million term loan facility further reduces borrowing costs with a 1.45% margin, a 33 basis point decrease compared to the weighted average of the two replaced term loans. The prior $250 million term loan from April 2024 had a 1.925% spread, while the November 2025 delayed draw term loan carried a 1.65% spread. These reductions reflect improved credit metrics and favorable refinancing conditions.

CarbonCountae Sustainability Pricing Aligns Financing with Environmental Goals

Both credit facilities integrate CarbonCountae-based sustainability pricing adjustments that link borrowing costs to the company’s environmental performance. The revolving credit margin ranges from 1.25% to 2.125% based on credit rating, with up to 10 basis points margin reduction for achieving CarbonCountae targets. The undrawn commitment fee ranges from 0.20% to 0.45%, adjustable by 1 basis point based on sustainability performance.

The term loan margin similarly includes up to 10 basis points of sustainability-based adjustment, with the current 1.45% margin reflecting this component. This structure incentivizes the company to meet environmental objectives while maintaining pricing stability tied to creditworthiness, aligning financial and sustainability goals increasingly common in infrastructure refinancing.

Revolving Facility Supersedes April 2024 Agreement

The new $2.25 billion revolving credit facility replaces the prior $1.825 billion unsecured credit agreement from April 2024, which matured in April 2028. The prior facility was terminated on July 14, 2026, with no outstanding loans at termination. Letters of credit issued under the prior agreement continue seamlessly under the new facility.

Standard terms apply, including customary affirmative and negative covenants, restrictions on liens, indebtedness, investments, fundamental changes, asset dispositions, affiliate transactions, use of proceeds, stock repurchases, and dividends. Events of default and remedies provisions are included. Obligations under the new facility are guaranteed by certain company subsidiaries.

Term Loan Consolidation Simplifies Debt Structure

The new $400 million unsecured term loan consolidates two prior term loans totaling $500 million, replacing the $250 million term loan from April 2024 with a 1.925% spread and the $250 million delayed draw term loan from November 2025 with a 1.65% spread. Both prior facilities were terminated on July 14, 2026, concurrent with the new loan closing, reducing administrative complexity.

This term loan has a three-year maturity, bridging intermediate-term financing between the revolving credit and longer-dated obligations. JPMorgan Chase acts as administrative agent, sole bookrunner, and sustainability structuring agent, with Cof6peratieve Rabobank U.A., New York Branch, and JPMorgan as joint lead arrangers. The facility includes customary unsecured loan provisions and is guaranteed by certain subsidiaries.

Improved Credit Quality Reflected in Pricing and Market Confidence

The reductions in borrowing spreads indicate enhanced credit quality since the prior facilities were established in 2024. The 10 basis point improvement in revolving credit spreads and 33 basis point term loan margin decrease suggest favorable refinancing market conditions and lender confidence. These improvements persist despite prevailing interest rate environments and may reflect stronger operational and sustainability performance.

The pricing structure balances credit risk compensation with sustainability incentives and market benchmarks, using Term SOFR as the floating rate benchmark. Credit rating triggers adjust margins as creditworthiness changes, while CarbonCountae adjustments provide a distinct sustainability-linked incentive layer.

Standard Covenant Package Maintains Credit Discipline

Both credit agreements include customary covenants protecting lender interests, such as affirmative and negative covenants restricting liens, indebtedness, investments, organizational changes, asset sales, affiliate transactions, and capital allocation including dividends and share repurchases. Events of default and remedies provisions are standard. Guarantees from certain subsidiaries enhance creditor protection by providing claims against subsidiary assets and cash flows.

Balance Sheet Impact and Financial Obligations

The new credit facilities constitute direct financial obligations requiring balance sheet recognition under GAAP. If undrawn, the $2.25 billion revolving credit facility appears as a contingent liability. Drawn amounts would be recorded as current or long-term debt with associated interest expense. The company did not disclose any drawn balances as of July 14, 2026.

The replacement of prior facilities removes associated contingent liabilities, while letters of credit continue under the new revolving facility. Total stated commitments increased by $325 million from $2.325 billion to $2.65 billion, expanding financial flexibility.

Subsidiary Guarantees Enhance Lender Security

Obligations under both new credit facilities are guaranteed by certain subsidiaries, providing lenders with claims on subsidiary assets and cash flows. Though specific subsidiaries and guarantee scope are not detailed, this structure is standard and reduces lender risk by diversifying obligors and collateral bases. Guarantee terms are contained in full credit agreement exhibits.

Competitive Terms Reflect Strong Market Position

The facilities’ competitive terms reflect HA Sustainable Infrastructure’s strong position in sustainable infrastructure finance. The lending syndicate includes 18 major global banks such as JPMorgan, Citibank, Rabobank, Credit Agricole, ING, Mizuho, Morgan Stanley, Royal Bank of Canada, Sumitomo Mitsui, and Truist, indicating robust demand and institutional confidence.

The inclusion of CarbonCountae sustainability adjustments demonstrates evolving market practices that integrate environmental performance into credit pricing, aligning lender and borrower incentives while maintaining traditional credit risk management.