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  "documentTitle": "Hannon Armstrong Sustainable Infrastructure Capital (HASI)",
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  "authorName": "Carson Block",
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  "presentationDate": "2022-07-12 00:00:00",
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  "notes": "This is a page from a research report (likely short-seller report) detailing specific financial transactions between HASI and SunStrong.",
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      "text": "SunStrong flattered HASI's 2020 financials while PIKing by providing HASI with a $21.6 million equity distribution.",
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      "text": "In November 2018, HASI issued Mezzanine Loan 2 to a SunPower subsidiary for up to $32.0 million, carrying annual interest of 11.75% and maturing in November 2043.",
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      "text": "In January 2020, HASI appears to have made a significant loan to SunStrong that was partly used to repay $57.5 million in principal from loans HASI made no more than 14 months earlier.",
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      "text": "issued substantially all of the loans to SunStrong that have a PIK option.35 Yet, HASI makes only general reference to PIK interest. The company states:",
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      "text": "SunStrong flattered HASI's 2020 financials while PIKing by providing HASI with a $21.6 million equity distribution. This distribution likely improved HASI's operating cash flow, while effectively being a roundtrip of money.",
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      "text": "Certain of our receivables may include the ability to defer required interest payments in exchange for increasing the receivable balance at the borrower's option.",
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      "text": "Certain of our receivables may include the ability to defer required interest payments in exchange for increasing the receivable balance at the borrower’s option. We generally accrue this paid-in-kind (“PIK”) interest when collection is expected, and cease accruing PIK interest if there is insufficient value to support the accrual or we expect that any portion of the principal or interest due is not collectible. — HASI 2021 10-K, p. 88",
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      "text": "35-42 Footnotes detailing specific SEC filings and financial statements.",
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      "text": "By Refinancing SunStrong Debt, HASI Boosts its Investing Cash Inflows, Giving the Appearance of a Strong Loan Portfolio",
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