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 (Tables)

Nonrecourse Debt (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Outstanding Nonrecourse Asset-Backed Debt and Bank Loans

We have outstanding the following asset-backed nonrecourse debt and bank loans (dollars in millions):


	Outstanding Balance as of													Value of Assets Pledged as of
	June 30, 2017			December 31, 2016			Interest Rate			Maturity Date		Anticipated Balance at Maturity		June 30, 2017		December 31, 2016		Description of Assets Pledged
HASI Sustainable Yield Bond 2013-1	$	73		$	75			2.79	%		December 2019	$	57	$	91	$	93	Financing receivables
ABS Loan Agreement	$	89		$	90			5.74	%		September 2021	$	17	$	87	$	97	Equity interest in Strong Upwind Holdings I, LLC
HASI Sustainable Yield Bond 2015-1A	$	96		$	97			4.28	%		October 2034	$	—	$	138	$	138	Financing receivables, real estate and real estate intangibles
HASI Sustainable Yield Bond 2015-1B Note	$	14		$	—			5.41	%		October 2034	$	—	$	138	$	—	Class B Bond of HASI Sustainable Yield Bond 2015-1
HASI SYB Loan Agreement 2015-1		⁽¹⁾		$	74			⁽¹⁾			⁽¹⁾		⁽¹⁾		⁽¹⁾	$	96	Equity interest in Strong Upwind Holdings II and III, LLC, related interest rate swap
2017 Credit Agreement	$	196			—			3.47	%⁽²⁾		June 2024	$	—	$	262	$	—	Equity interests in Strong Upwind Holdings I, II, III, and IV LLC, and Northern Frontier, LLC
HASI SYB Loan Agreement 2015-2	$	37		$	41			5.38	% ⁽³⁾		December 2023	$	—	$	67	$	70	Equity interest in Buckeye Wind Energy Class B Holdings LLC, related interest rate swap
HASI SYB Loan Agreement 2015-3	$	147		$	150			4.92	%		December 2020	$	127	$	173	$	175	Residential solar financing receivables, related interest rate swaps
HASI SYB Loan Agreement 2016-1	$	119		$	98			4.23	%⁽³⁾		November 2021	$	101	$	139	$	114	Residential solar financing receivables, related interest rate swaps
HASI SYB Trust 2016-2	$	85		$	—			4.35	%		April 2037	$	—	$	91	$	—	Financing receivables
Other nonrecourse debt ⁽⁴⁾	$	87		$	84			2.26	% - 7.45%		2017 to 2046	$	—	$	221	$	81	Financing receivables
Debt issuance costs	$	(21	)	$	(17	)

Nonrecourse debt⁽⁵⁾	$	922		$	692

(1)	This nonrecourse debt agreement was re-financed in the second quarter of 2017 with the same lender through the 2017 Credit Agreement.

(2)	Interest rate represents the current period’s LIBOR based rate plus the spread. Under the terms of the 2017 Credit Agreement, this rate will become fixed upon the lender’s syndication of the loan, or that can be fixed at our option.

(3)	Interest rate represents the current period’s LIBOR based rate plus the spread. Also see the interest rate swap contracts shown in the table below, the value of which are not included in the book value of assets pledged.

(4)	Other nonrecourse debt consists of various debt agreements used to finance certain of our financing receivables for their term. Debt service payment requirements, in a majority of cases, are equal to or less than the cash flows received from the underlying financing receivables.

(5)	The total collateral pledged against our nonrecourse debt was $1,269 million and $864 million as of June 30, 2017 and December 31, 2016, respectively.

Schedule of Interest Rate Swaps which are Designated as Cash Flow Hedges

In connection with several of our nonrecourse debt borrowings, we have entered into the following interest rate swaps that are designated as cash flow hedges (dollars in millions):


					Notional Value as of				Fair Value as of
	Base Rate	Hedged Rate			June 30, 2017		December 31, 2016		June 30, 2017			December 31, 2016			Term
HASI SYB Loan Agreement 2015-1⁽¹⁾	3 month Libor		1.55	%	$	—	$	67	$	—		$	—		December 2015 to September 2021
HASI SYB Loan Agreement 2015-2	3 month Libor		1.52	%	$	36	$	37	$	—		$	—		December 2015 to December 2018
HASI SYB Loan Agreement 2015-2	3 month Libor		2.55	%	$	29	$	29	$	(0.4	)	$	(0.2	)	December 2018 to December 2024
HASI SYB Loan Agreement 2015-3	1 month Libor		2.34	%	$	119	$	119	$	0.2		$	1.0		November 2020 to August 2028
HASI SYB Loan Agreement 2016-1	3 month Libor		1.88	%	$	109	$	72	$	(0.1	)	$	0.2		November 2016 to November 2021
HASI SYB Loan Agreement 2016-1	3 month Libor		2.73	%	$	107	$	107	$	(0.7	)	$	—		November 2021 to October 2032

Total					$	400	$	431	$	(1.0	)	$	1.0

(1)	This interest rate swap was financially settled in June 2017.

Schedule of Minimum Maturities of Nonrecourse Debt

The next 12-months of stated minimum maturities of nonrecourse debt are as follows:


	(dollars in millions)
July 1, 2017 to December 31, 2017	$	37
2018		47
2019		105
2020		176
2021		143
2022		18
Thereafter		417

	$	943
Deferred financing costs, net		(21	)

Total Nonrecourse	$	922

Debt