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

Annual report pursuant to Section 13 and 15(d)

Long-term Debt (Tables)

Long-term Debt (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Outstanding Non-Recourse Asset-Backed Debt and Bank Loans

We have outstanding the following asset-backed non-recourse debt and bank loans:


	Outstanding Balance as of December 31,						Interest Rate			Maturity Date		Anticipated Balance at Maturity		Value of Assets Pledged as of December 31,				Description of Assets Pledged
	2017			2016			Interest Rate			Maturity Date		Anticipated Balance at Maturity		2017		2016		Description of Assets Pledged
	(dollars in millions)
HASI Sustainable Yield Bond 2013-1	$	67		$	75			2.79	%		December 2019	$	57	$	86	$	93	Receivables
ABS Loan Agreement		81			90			5.74	%		September 2021		17		79		97	Equity interest in Strong Upwind Holdings I, LLC
HASI Sustainable Yield Bond 2015-1A		94			97			4.28	%		October 2034		—		137		138	Receivables, real estate and real estate intangibles
HASI Sustainable Yield Bond 2015-1B Note		14			—			5.41	%		October 2034		—		137		—	Class B Bond of HASI Sustainable Yield Bond 2015-1
HASI SYB Loan Agreement 2015-1		—	⁽¹⁾		74		$	—			—		—		—		96	Equity interest in Strong Upwind Holdings II and III, LLC, related interest rate swap
2017 Credit Agreement		180			—			4.12	%		January 2023		—		226		—	Equity interests in Strong Upwind Holdings I, II, III, and IV LLC, and Northern Frontier, LLC
HASI SYB Loan Agreement 2015-2		36			41			5.78	% ⁽²⁾		December 2023		—		68		70	Equity interest in Buckeye Wind Energy Class B Holdings LLC, related interest rate swap
HASI SYB Loan Agreement 2015-3		143			150			4.92	%		December 2020		127		171		175	Residential solar receivables, related interest rate swaps
HASI SYB Loan Agreement 2016-1		121			98			4.44	% ⁽²⁾		November 2021		104		143		114	Residential solar receivables, related interest rate swaps
HASI SYB Trust 2016-2		81			—			4.35	%		April 2037		—		86		—	Receivables
2017 Master Repurchase Agreement		35			—			3.98	%⁽²⁾		July 2019		31		38		—	Receivables and investments
HASI ECON 101 Trust		134			—			3.57	%		May 2041		—		140		—	Receivables and investments
HASI SYB Trust 2017-1		162			—			3.86	%		March 2042		—		209		—	Receivables, real estate and real estate intangibles
Other non-recourse debt ⁽³⁾		90			84			2.26 7.45	% - %		2018 to 2046		5		162		81	Receivables
Debt issuance costs		(27	)		(17	)

Non-recourse debt ⁽⁴⁾	$	1,211		$	692

(1)	This non-recourse 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. 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 or the interest rate of the debt instrument.

(3)	Other non-recourse debt consists of various debt agreements used to finance certain of our 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 receivables.

(4)	The total collateral pledged against our non-recourse debt was $1,545 million and $864 million as of December 31, 2017 and December 31, 2016, respectively.

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

In connection with several of our non-recourse debt borrowings, we have entered into the following interest rate swaps that are designated as cash flow hedges:


						Notional Value as of December 31,				Fair Value as of December 31,
	Base Rate		Hedged Rate			2017		2016		2017			2016			Term
						(dollars in millions)
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	%		31		37		0.1			—			December 2015 to December 2018
HASI SYB Loan Agreement 2015-2		3 month Libor		2.55	%		29		29		(0.2	)		(0.2	)		December 2018 to December 2024
HASI SYB Loan Agreement 2015-3		1 month Libor		2.34	%		119		119		—			1.0			November 2020 to August 2028
HASI SYB Loan Agreement 2016-1		3 month Libor		1.88	%		120		72		1.1			0.2			November 2016 to November 2021
HASI SYB Loan Agreement 2016-1		3 month Libor		2.73	%		107		107		(1.1	)		—			November 2021 to October 2032
2017 Master Repurchase Agreement		3 month Libor		2.42	%		32		—		—			—			August 2019 to March 2033

Total						$	438	$	431	$	(0.1	)	$	1.0

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

Summary of Presentation of Total Balance of Financial Statement Line Item Related to Hedging Activities in Consolidated Statements of Operations and Impact of Hedges

The following is a presentation of the total balance of the financial statement line item related to our hedging activities in our consolidated statements of operations and the impact of our hedges that is included in this total balance.


	Year ended December 31,
	2017		2016		2015
	(in thousands)
Total interest expense	$	65,472	$	45,241	$	26,385
Impact of hedging		972		1,316		(4	)

Schedule of Minimum Maturities of Non-Recourse Debt

The stated minimum maturities of non-recourse debt as of December 31, 2017, were as follows:


Year Ending December 31,	Future minimum maturities
	(in millions)
2018	$	66
2019		146
2020		182
2021		154
2022		26
Thereafter		664

Total minimum maturities		1,238
Deferred financing costs, net		(27	)

Total non-recourse debt	$	1,211

4.125% Convertible Senior Notes Due September 1, 2022 [Member]

Summary of Components of Convertible Notes

The following table presents a summary of the components of the convertible notes:


	December 31, 2017
	(in millions)
Principal	$	150
Accrued interest		3
Less:
Unamortized financing costs		(5	)

Carrying value of convertible notes	$	148

Interest expense	$	3