Long-term Debt (Tables)
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9 Months Ended |
Sep. 30, 2018 |
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| Debt Disclosure [Abstract] |
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| Schedule of Outstanding Non-Recourse Asset-Backed Debt and Bank Loans |
We have outstanding the following asset-backed non-recourse debt and bank loans:
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Outstanding Balance
as of |
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Anticipated
Balance at
Maturity |
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Value of Assets Pledged
as of |
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September 30, 2018 |
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December 31, 2017 |
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Interest
Rate |
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Maturity Date |
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September 30, 2018 |
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December 31, 2017 |
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Description
of Assets Pledged |
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(dollars in millions) |
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HASI Sustainable Yield Bond 2013-1 |
$ |
62 |
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$ |
67 |
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2.79 |
% |
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December 2019 |
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$ |
57 |
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$ |
83 |
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$ |
86 |
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Receivables |
ABS Loan Agreement (1)
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— |
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81 |
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5.74 |
% |
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— |
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— |
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— |
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79 |
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Equity interest in Strong Upwind Holdings I, LLC |
HASI Sustainable Yield Bond 2015-1A |
91 |
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94 |
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4.28 |
% |
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October 2034 |
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— |
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135 |
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137 |
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Receivables, real estate and real estate intangibles |
HASI Sustainable Yield Bond 2015-1B Note |
13 |
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14 |
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5.41 |
% |
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October 2034 |
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— |
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135 |
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137 |
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Class B Bond of HASI Sustainable Yield Bond 2015-1 |
2017 Credit Agreement |
124 |
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180 |
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4.12 |
% |
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January 2023 |
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— |
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160 |
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226 |
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Equity interests in Strong Upwind Holdings I, II, III, and IV LLC, and Northern Frontier, LLC |
HASI SYB Loan Agreement 2015-2 |
33 |
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36 |
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6.47 |
% |
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(2) |
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December 2023 |
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— |
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72 |
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68 |
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Equity interest in Buckeye Wind Energy Class B Holdings LLC, related interest rate swap |
HASI SYB Loan Agreement 2015-3 |
137 |
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143 |
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4.92 |
% |
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December 2020 |
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127 |
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167 |
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171 |
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Residential solar receivables, related interest rate swaps |
HASI SYB Loan Agreement 2016-1 |
119 |
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121 |
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5.40 |
% |
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(2) |
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November 2021 |
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106 |
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141 |
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143 |
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Residential solar receivables, related interest rate swaps |
HASI SYB Trust 2016-2 |
81 |
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81 |
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4.35 |
% |
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April 2037 |
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— |
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82 |
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86 |
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Receivables |
2017 Master Repurchase Agreement |
47 |
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35 |
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5.00 |
% |
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(2) |
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July 2019 |
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42 |
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51 |
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38 |
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Receivables and investments |
HASI ECON 101 Trust |
133 |
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134 |
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3.57 |
% |
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May 2041 |
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— |
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135 |
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140 |
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Receivables and investments |
HASI SYB Trust 2017-1 |
160 |
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162 |
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3.86 |
% |
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March 2042 |
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— |
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208 |
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209 |
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Receivables, real estate and real estate intangibles |
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Other non-recourse
debt (3)
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120 |
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90 |
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2.26% - 7.45% |
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2018 to 2046 |
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18 |
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177 |
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162 |
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Receivables |
Debt issuance costs |
(24 |
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(27 |
) |
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Non-recourse debt (4)
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$ |
1,096 |
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$ |
1,211 |
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(1) |
This non-recourse debt agreement was re-financed in the third quarter of 2018 with the same lender with the PF Credit Facility as discussed in Note 7. |
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(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. |
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(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. |
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(4) |
The total collateral pledged against our non-recourse debt was $1,411 million and $1,545 million as of September 30, 2018 and December 31, 2017, respectively. In addition, $59 million of our restricted cash balance was pledged as collateral to various non-recourse loans as of September 30, 2018 and December 31, 2017.
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| Schedule of Interest Rate Swaps which are Designated as Cash Flow Hedges |
In connection with several of our non-recourse debt borrowings, we have entered into the following interest rate swaps that are designated as cash flow hedges:
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Notional Value as of |
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Fair Value as of |
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Base
Rate
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Hedged
Rate
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September 30, 2018 |
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December 31, 2017 |
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September 30, 2018 |
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December 31, 2017 |
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Term |
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(dollars in millions) |
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HASI SYB Loan Agreement 2015-2 |
3 month LIBOR |
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1.52 |
% |
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$ |
30 |
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$ |
31 |
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$ |
0.1 |
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$ |
0.1 |
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December 2015 to December 2018 |
HASI SYB Loan Agreement 2015-2 |
3 month LIBOR |
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2.55 |
% |
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29 |
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29 |
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0.4 |
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(0.2 |
) |
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December 2018 to December 2024 |
HASI SYB Loan Agreement 2015-3 |
1 month LIBOR |
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2.34 |
% |
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119 |
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119 |
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3.0 |
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— |
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November 2020 to August 2028 |
HASI SYB Loan Agreement 2016-1 |
3 month LIBOR |
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1.88 |
% |
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111 |
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120 |
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3.7 |
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1.1 |
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November 2016 to
November 2021 |
HASI SYB Loan Agreement 2016-1 |
3 month LIBOR |
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2.73 |
% |
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107 |
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107 |
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1.7 |
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(1.1 |
) |
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November 2021 to October 2032 |
2017 Master Repurchase Agreement |
3 month LIBOR |
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2.42 |
% |
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32 |
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32 |
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1.0 |
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— |
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August 2019 to March 2033 |
Total |
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$ |
428 |
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$ |
438 |
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$ |
9.9 |
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$ |
(0.1 |
) |
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| 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.
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Three months ended September 30, |
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Nine months ended September 30, |
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2018 |
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2017 |
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2018 |
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2017 |
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(in thousands) |
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Total interest expense |
$ |
19,681 |
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$ |
17,584 |
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$ |
57,424 |
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$ |
46,728 |
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Impact of hedging |
(198 |
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201 |
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(286 |
) |
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798 |
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| Schedule of Minimum Maturities of Debt |
The stated minimum maturities to be paid under the SU Borrowing to meet the required target loan balances as of September 30, 2018 are as follows:
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Future minimum maturities |
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(in millions) |
October 1, 2018 to December 31, 2018 |
$ |
14 |
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2019 |
10 |
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2020 |
8 |
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2021 |
31 |
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Total |
$ |
63 |
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The stated minimum maturities of non-recourse debt as of September 30, 2018, were as follows:
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Future minimum maturities |
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(in millions) |
October 1, 2018 to December 31, 2018 |
$ |
19 |
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2019 |
139 |
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2020 |
156 |
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2021 |
135 |
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2022 |
27 |
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2023 |
62 |
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Thereafter |
582 |
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Total minimum maturities |
$ |
1,120 |
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Deferred financing costs, net |
(24 |
) |
Total non-recourse debt |
$ |
1,096 |
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| Summary of Components of Convertible Notes |
The following table presents a summary of the components of the convertible notes:
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September 30, 2018 |
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December 31, 2017 |
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(in millions) |
Principal |
$ |
150 |
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$ |
150 |
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Accrued interest |
1 |
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3 |
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Less: |
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Unamortized financing costs |
(4 |
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(5 |
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Carrying value of convertible notes |
$ |
147 |
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$ |
148 |
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