Quarterly report pursuant to Section 13 or 15(d)

Long-term Debt (Tables)

v3.10.0.1
Long-term Debt (Tables)
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
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
 
 
 
 
 
 
 
Anticipated
Balance at
Maturity
 
Value of Assets Pledged
as of
 
 
 
June 30, 2018
 
December 31, 2017
 
Interest
Rate
 
 
 
Maturity Date
 
 
June 30, 2018
 
December 31, 2017
 
Description
of Assets Pledged
 
(dollars in millions)
 
 
HASI Sustainable Yield Bond 2013-1
$
67

 
$
67

 
2.79
%
 
 
 
December 2019
 
$
57

 
$
87

 
$
86

 
Receivables
ABS Loan Agreement
77

 
81

 
5.74
%
 
 
 
September 2021
 
17

 
67

 
79

 
Equity interest in Strong Upwind Holdings I, LLC
HASI Sustainable Yield Bond 2015-1A
92

 
94

 
4.28
%
 
 
 
October 2034
 

 
135

 
137

 
Receivables, real estate and real estate intangibles
HASI Sustainable Yield Bond 2015-1B Note
13

 
14

 
5.41
%
 
 
 
October 2034
 

 
135

 
137

 
Class B Bond of HASI Sustainable Yield Bond 2015-1
2017 Credit Agreement
145

 
180

 
4.12
%
 
 
 
January 2023
 

 
174

 
226

 
Equity interests in Strong Upwind Holdings I, II, III, and IV LLC, and Northern Frontier, LLC
HASI SYB Loan Agreement 2015-2
34

 
36

 
6.42
%
 
(1) 
 
December 2023
 

 
70

 
68

 
Equity interest in Buckeye Wind Energy Class B Holdings LLC, related interest rate swap
HASI SYB Loan Agreement 2015-3
138

 
143

 
4.92
%
 
 
 
December 2020
 
127

 
168

 
171

 
Residential solar receivables, related interest rate swaps
HASI SYB Loan Agreement 2016-1
120

 
121

 
5.41
%
 
(1) 
 
November 2021
 
106

 
142

 
143

 
Residential solar receivables, related interest rate swaps
HASI SYB Trust 2016-2
80

 
81

 
4.35
%
 
 
 
April 2037
 

 
85

 
86

 
Receivables
2017 Master Repurchase Agreement
47

 
35

 
5.00
%
 
(1) 
 
July 2019
 
42

 
54

 
38

 
Receivables and investments
HASI ECON 101 Trust
134

 
134

 
3.57
%
 
 
 
May 2041
 

 
136

 
140

 
Receivables and investments
HASI SYB Trust 2017-1
161

 
162

 
3.86
%
 
 
 
March 2042
 

 
208

 
209

 
Receivables, real estate and real estate intangibles
Other non-recourse debt (2)
115

 
90

 
2.26% - 7.45%

 
 
 
2018 to 2046
 
18

 
177

 
162

 
Receivables
Debt issuance costs
(25
)
 
(27
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-recourse debt (3)
$
1,198

 
$
1,211

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1)
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.
(2)
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.
(3)
The total collateral pledged against our non-recourse debt was $1,503 million and $1,545 million as of June 30, 2018 and December 31, 2017, respectively. In addition, $68 million and $59 million of our restricted cash balance was pledged as collateral to various non-recourse loans as of June 30, 2018 and December 31, 2017, 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
 
Fair Value as of
 
 
 
Base
Rate
 
Hedged
Rate
 
June 30, 2018
 
December 31, 2017
 
June 30, 2018
 
December 31, 2017
 
Term
 
 
 
 
 
(dollars in millions)
 
 
HASI SYB Loan Agreement 2015-2
3 month Libor
 
1.52
%
 
$
30

 
$
31

 
$
0.1

 
$
0.1

 
December 2015 to December 2018
HASI SYB Loan Agreement 2015-2
3 month Libor
 
2.55
%
 
29

 
29

 
0.3

 
(0.2
)
 
December 2018 to December 2024
HASI SYB Loan Agreement 2015-3
1 month Libor
 
2.34
%
 
119

 
119

 
2.3

 

 
November 2020 to August 2028
HASI SYB Loan Agreement 2016-1
3 month Libor
 
1.88
%
 
112

 
120

 
3.3

 
1.1

 
November 2016 to 
November 2021
HASI SYB Loan Agreement 2016-1
3 month Libor
 
2.73
%
 
107

 
107

 
0.9

 
(1.1
)
 
November 2021 to October 2032
2017 Master Repurchase Agreement
3 month Libor
 
2.42
%
 
32

 
32

 
0.7

 

 
August 2019 to March 2033
Total
 
 
 
 
$
429

 
$
438

 
$
7.6

 
$
(0.1
)
 
 
Summary of Analysis of Financial Statement Line Item Impacted by Cash Flow Hedges in Condensed Consolidated Statement of Operations
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.
 
Three months ended June 30,
 
Six months ended June 30,
 
2018
 
2017
 
2018
 
2017
 
(in thousands)
 
 
 
 
Total interest expense
$
19,033

 
$
15,361

 
$
37,744

 
$
29,144

Impact of hedging
(143
)
 
264

 
$
(88
)
 
$
597

Schedule of Minimum Maturities of Non-Recourse Debt
The stated minimum maturities of non-recourse debt as of June 30, 2018, were as follows:
 
Future minimum maturities
 
(in millions)
July 1, 2018 to December 31, 2018
$
43

2019
158

2020
180

2021
156

2022
27

2023
62

Thereafter
597

Total minimum maturities
$
1,223

Deferred financing costs, net
(25
)
Total non-recourse debt
$
1,198

Summary of Components of Convertible Notes
The following table presents a summary of the components of the convertible notes:
 
June 30, 2018
 
December 31, 2017
 
(in millions)
Principal
$
150

 
$
150

Accrued interest
2

 
3

Less:
 
 
 
Unamortized financing costs
(4
)
 
(5
)
Carrying value of convertible notes
$
148

 
$
148