How Investors May Respond To HASI Expanding Its Revolving Credit Facility To $1.65 Billion

• Earlier this week, HA Sustainable Infrastructure Capital, Inc. executed a fourth amendment to its credit agreement, expanding its revolving credit facility by US$100 million to US$1.65 billion through the accordion feature.
• This larger credit line increases the firm’s financial flexibility to fund climate-positive infrastructure projects while addressing investor focus on its already high leverage.
• We’ll now explore how this expanded revolving credit capacity shapes HA Sustainable Infrastructure Capital’s investment narrative and future funding optionality.

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What Is HA Sustainable Infrastructure Capital's Investment Narrative?

To own HA Sustainable Infrastructure Capital, you have to believe its green-lending model can convert growing demand for climate-positive projects into steady earnings and dividends, despite modest historical ROE and heavy use of debt. Recent quarterly results showed improved profitability, but the net-debt-to-EBITDA ratio near 28.5 times keeps balance sheet risk front and center. The US$100 million expansion of the revolving credit facility to US$1.65 billion fits this tension neatly: it gives HA more room to fund new projects and smooth near term funding needs, yet it also leans further into a capital structure already stretched by junior and senior bond issuance in 2025. In my view, this amendment tweaks the short term funding and growth toolkit, but does not fundamentally change the key risk that leverage could become a constraint if project returns underwhelm.

Yet the very flexibility investors like today is tied to that elevated leverage risk tomorrow.

Despite retreating, HA Sustainable Infrastructure Capital's shares might still be trading 8% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

Four Simply Wall St Community members currently see fair value between US$24.24 and US$39.36, underscoring how far apart private investors can be. When you layer that dispersion on top of HA’s rising funding capacity and already high leverage, it becomes even more important to weigh both upside from new projects and the balance sheet risk that comes with financing them.

Explore 4 other fair value estimates on HA Sustainable Infrastructure Capital - why the stock might be worth 27% less than the current price!

Build Your Own HA Sustainable Infrastructure Capital Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your HA Sustainable Infrastructure Capital research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free HA Sustainable Infrastructure Capital research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate HA Sustainable Infrastructure Capital's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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