Long-term Debt (Tables)
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12 Months Ended |
Dec. 31, 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
December 31,
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Interest
Rate
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Maturity Date |
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Anticipated
Balance at
Maturity
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Carrying Value of
Assets Pledged
as of December 31,
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Description of Assets
Pledged
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2018 |
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2017 |
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2018 |
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2017 |
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(dollars in millions) |
HASI Sustainable Yield Bond 2013-1 |
$ |
55 |
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$ |
67 |
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2.79 |
% |
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December
2019 |
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$ |
51 |
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$ |
76 |
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$ |
86 |
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Receivables |
ABS Loan Agreement (1)
|
— |
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81 |
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— |
% |
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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 |
90 |
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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 |
112 |
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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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151 |
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226 |
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Equity interests in Strong Upwind Holdings I, II, III, and IV LLC, and Northern Frontier Wind, LLC |
HASI SYB Loan Agreement 2015-2 |
32 |
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36 |
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6.89 |
% |
(2) |
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 (3)
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— |
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143 |
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— |
% |
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— |
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— |
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— |
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171 |
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Residential solar receivables, related interest rate swaps |
HASI SYB Loan Agreement 2016-1 (3)
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— |
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121 |
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— |
% |
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— |
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— |
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— |
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143 |
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Residential solar receivables, related interest rate swaps |
HASI SYB Trust 2016-2 |
77 |
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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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81 |
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86 |
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Receivables |
2017 Master Repurchase Agreement |
56 |
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35 |
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5.13 |
% |
(2) |
July 2019 |
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53 |
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67 |
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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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137 |
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140 |
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Receivables and investments |
HASI SYB Trust 2017-1 |
159 |
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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 |
Other non-recourse debt (4)
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125 |
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90 |
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3.15% - 7.45% |
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2019 to 2046 |
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18 |
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178 |
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162 |
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Receivables |
Debt issuance costs |
(17 |
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(27 |
) |
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Non-recourse debt (5)
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$ |
835 |
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$ |
1,211 |
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(1) |
This non-recourse debt agreement was re-financed through our credit facilities in 2018. |
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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) |
These non-recourse debt agreements were repaid in the fourth quarter of 2018 from proceeds of prepayment of the related assets. See Note 6. Our Portfolio for further information. |
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(4) |
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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(5) |
The total collateral pledged against our non-recourse debt was $1,105 million and $1,545 million as of December 31, 2018 and December 31, 2017, respectively. In addition, $35 million and $59 million of our restricted cash balance was pledged as collateral to various non-recourse loans as of December 31, 2018 and December 31, 2017
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| Schedule of Interest Rate Swaps which are Designated as Cash Flow Hedges |
In connection with several of our non-recourse debt borrowings, we have entered into the following interest rate swaps that are designated as cash flow hedges:
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Notional Value
as of December 31,
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Fair Value
as of
December 31,
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Base Rate |
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Hedged
Rate
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2018 |
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2017 |
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2018 |
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2017 |
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Term |
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(dollars in millions) |
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HASI SYB Loan Agreement 2015-2 |
3 month
LIBOR |
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1.52 |
% |
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$ |
— |
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$ |
31 |
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$ |
— |
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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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— |
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(0.2 |
) |
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December 2018 to
December 2024 |
HASI SYB Loan Agreement 2015-3 (1)
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1 month
LIBOR |
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2.34 |
% |
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— |
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119 |
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— |
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— |
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November 2020 to
August 2028 |
HASI SYB Loan Agreement 2016-1 (1)
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3 month
LIBOR |
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1.88 |
% |
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— |
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120 |
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— |
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1.1 |
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November 2016 to
November 2021 |
HASI SYB Loan Agreement 2016-1 (1)
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3 month
LIBOR |
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2.73 |
% |
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— |
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107 |
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— |
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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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0.3 |
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— |
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August 2019 to
March 2033 |
Total |
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$ |
61 |
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$ |
438 |
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$ |
0.3 |
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$ |
(0.1 |
) |
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(1) |
These interest rate swaps were financially settled in November 2018. |
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| 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.
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Year ended December 31, |
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2018 |
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2017 |
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2016 |
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(in thousands) |
Total interest expense |
$ |
76,874 |
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$ |
65,472 |
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$ |
45,241 |
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Impact of hedging |
(8,034 |
) |
(1) |
972 |
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1,316 |
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(1) |
There was an approximately $8 million gain on the settlement of these instruments that is classified in interest expense in our consolidated statement of operations.
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| Schedule of Minimum Maturities of Non-Recourse Debt |
The stated minimum maturities to be paid under the amortization schedule to meet the required target loan balances as of December 31, 2018 are as follows:
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Future Minimum Maturities |
For the year ended December 31, |
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(in millions) |
2019 |
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$ |
10 |
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2020 |
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8 |
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2021 |
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8 |
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2022 |
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8 |
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2023 |
|
15 |
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Total |
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$ |
49 |
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The stated minimum maturities of non-recourse debt as of December 31, 2018, were as follows:
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Year Ending December 31, |
Future minimum
maturities
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(in millions) |
2019 |
$ |
139 |
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2020 |
24 |
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2021 |
26 |
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2022 |
27 |
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2023 |
61 |
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Thereafter |
575 |
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Total minimum maturities |
852 |
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Deferred financing costs, net |
(17 |
) |
Total non-recourse debt |
$ |
835 |
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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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As of and for the year ended December 31, |
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2018 |
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2017 |
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(in millions) |
Principal |
$ |
150 |
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$ |
150 |
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Accrued interest |
2 |
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3 |
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Less: |
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Unamortized financing costs |
(4 |
) |
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(5 |
) |
Carrying value of convertible notes |
$ |
148 |
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$ |
148 |
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Interest expense |
$ |
7 |
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$ |
3 |
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