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

Quarterly report pursuant to Section 13 or 15(d)

Nonrecourse Debt

Nonrecourse Debt

9 Months Ended

Sep. 30, 2013

8. Nonrecourse Debt

Certain of the Company’s financing receivables have been financed using nonrecourse debt. When nonrecourse debt is used, the financings are typically collateralized by a security interest in the financing receivables or leased equipment and at no time is the Company liable for nonpayment by the obligor of the financing receivable. An analysis of nonrecourse debt by interest rate as of September 30, 2013 and December 31, 2012 is as follows (amounts in thousands):


September 30, 2013	Balance		Maturity
Fixed-rate promissory notes, interest rates from 2.06% to 5.00% per annum	$	86,872		2014 to 2032
Fixed-rate promissory notes, interest rates from 5.01% to 6.50% per annum		75,627		2013 to 2031
Fixed-rate promissory notes, interest rates from 6.51% to 8.00% per annum		25,289		2015 to 2031

Total nonrecourse debt	$	187,788


December 31, 2012	Balance		Maturity
Fixed-rate promissory notes, interest rates from 2.26% to 5.00% per annum	$	82,753		2014 to 2032
Fixed-rate promissory notes, interest rates from 5.01% to 6.50% per annum		85,301		2013 to 2031
Fixed-rate promissory notes, interest rates from 6.51% to 8.00% per annum		27,898		2013 to 2031

Total nonrecourse debt	$	195,952

Amounts due under nonrecourse notes are secured by financing receivables with a carrying value of $184.2 million as of September 30, 2013 and there is no recourse to the general assets of the Company. Debt service, in a majority of cases, is equal to or less than the lease or financing receivables from the equipment user. Approximately $18.5 million of nonrecourse debt was repaid in April 2013 from the proceeds of the IPO.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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