HA Sustainable Infrastructure Capital, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Equity

Equity

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Equity

Dividends and Distributions

Our board of directors declared the following dividends in 2018 and 2019:



Announced Date	Record Date		Pay Date	Amount per share
2/21/2018	4/4/2018		4/12/2018	$	0.330
5/31/2018	7/5/2018		7/12/2018	0.330
9/12/2018	10/3/2018		10/11/2018	0.330
12/12/2018	12/26/2018	⁽¹⁾	1/10/2019	0.330
2/21/2019	4/3/2019		4/11/2019	0.335


(1)	This dividend was treated as a distribution in 2019 for tax purposes.

We have an effective universal shelf registration statement registering the potential offer and sale, from time to time and in one or more offerings, of any combination of our common stock, preferred stock, depositary shares, debt securities, warrants and rights (collectively referred to as the “securities”). We may offer the securities directly, through agents, or to or through underwriters by means of ordinary brokers’ transactions on the NYSE or otherwise at market prices prevailing at the time of sale or at negotiated prices and may include “at the market” (“ATM”) offerings or sales “at the market,” to or through a market maker or into an existing trading market on an exchange or otherwise. We completed the following public offerings (including ATM issuances) of our common stock in 2018 and 2019:



Closing Date	Common Stock Offerings	Shares Issued ⁽¹⁾	Price Per Share		Net Proceeds ⁽²⁾
		(amounts in millions, except per share amounts)
5/18/18 to 6/25/18	ATM	0.834	18.76	⁽³⁾	$	15
11/15/18 to 12/11/18	ATM	2.777	23.37	⁽³⁾	64
12/17/2018 and 1/3/2019	Public Offering	5.465	21.60	⁽⁴⁾	117
1/23/19 to 3/21/19	ATM	1.603	23.39	⁽³⁾	37


(1)	Includes shares issued in connection with the exercise of the underwriters’ option to purchase additional shares.


(2)	Net proceeds from the offerings are shown after deducting underwriting discounts, commissions and other offering costs.


(3)	Represents the average price per share at which investors in our ATM offerings purchased our shares.


(4)	Represents the price per share at which the underwriters in our public offerings purchased our shares.

Awards of Shares of Restricted Common Stock and Restricted Stock Units under our 2013 Plan

We have issued awards with service, performance and market conditions that vest from 2019 to 2023. During the three months ended March 31, 2019, our board of directors awarded employees and directors 192,893 shares of restricted stock and restricted stock units that vest from 2019 to 2022. As of March 31, 2019, as it relates to previously issued restricted stock awards with performance conditions, we have concluded that it is probable that the performance conditions will be met.

For the three months ended March 31, 2019, we recorded $4 million of equity-based compensation expense as compared to $2 million for the three months ended March 31, 2018. The total unrecognized compensation expense related to awards of shares of restricted stock and restricted stock units was approximately $13 million as of March 31, 2019. We expect to recognize compensation expense related to these awards over a weighted-average term of approximately 2 years. A summary of the unvested shares of restricted common stock that have been issued is as follows:



	Restricted Shares of Common Stock		Weighted Average Share Price		Value
					(in millions)
Ending Balance — December 31, 2017	1,399,593		$	18.73	$	26.2
Granted	454,106		19.72		9.0
Vested	(370,072	)	18.88		(7.0		)
Forfeited	(96,871	)	18.92		(1.8		)
Ending Balance — December 31, 2018	1,386,756		$	19.00	$	26.4
Granted	148,401		23.96		3.5
Vested	(551,502	)	18.85		(10.4		)
Forfeited	—		—		—
Ending Balance — March 31, 2019	983,655		$	19.83	$	19.5

A summary of the unvested shares of restricted stock units that have market based vesting conditions that have been issued is as follows:



	Restricted Stock Units		Weighted Average Share Price		Value
					(in millions)
Ending Balance — December 31, 2017	255,706		$	18.99	$	4.9
Granted	176,128		20.24		3.5
Vested	(20,368	)	18.99		(0.4		)
Forfeited	(18,318	)	19.05		(0.3		)
Ending Balance — December 31, 2018	393,148		$	19.55	$	7.7
Granted	44,492		25.03		1.1
Vested	—		—		—
Forfeited	—		—		—
Ending Balance — March 31, 2019	437,640		$	20.10	$	8.8