Quarterly report pursuant to Section 13 or 15(d)

Long-term Debt (Tables)

v3.20.2
Long-term Debt (Tables)
 6 Months Ended
Jun. 30, 2020
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		 Carrying Value of Assets Pledged as of
  June 30, 2020 December 31, 2019 Interest
Rate		 Maturity Date June 30, 2020 December 31, 2019 Description
of Assets Pledged
(dollars in millions)
HASI Sustainable Yield Bond 2015-1A $ 84    $ 85    4.28% October 2034 $ —    $ 134    $ 126    Receivables, real estate and real estate intangibles
HASI Sustainable Yield Bond 2015-1B Note 13    13    5.41% October 2034 —    134    126    Class B Bond of HASI Sustainable Yield Bond 2015-1
2017 Credit
Agreement (1)
—    61    4.12% January 2023 —    —    120    Equity interests in Strong Upwind Holdings I, II, III, and IV LLC, and Northern Frontier, LLC
HASI SYB Loan Agreement 2015-2 23    28    4.37%
(2)
 December 2023 —    71    73    Equity interest in Buckeye Wind Energy Class B Holdings LLC, related interest rate swap
HASI SYB Trust 2016-2 71    72    4.35% April 2037 —    76    76    Receivables
HASI ECON 101 Trust 127    129    3.57% May 2041 —    132    135    Receivables and investments
HASI SYB Trust 2017-1 153    155    3.86% March 2042 —    206    206    Receivables, real estate and real estate intangibles
Lannie Mae Series 2019-01 96    96    3.68% January 2047 108    106    Receivables, real estate and real estate intangibles
Other non-recourse
debt (3)
73    77   
3.15% - 7.23%
 2022 to 2032 18    73    77    Receivables
Unamortized financing costs (14)   (16)  
Non-recourse debt (4)
$ 626    $ 700   
(1)This loan was prepaid in January 2020.
(2)Interest rate represents the current period’s LIBOR based rate plus the spread. We have hedged the LIBOR rate exposure for the HASI SYB Loan Agreement 2015-2 using interest rate swaps fixed at 2.55%.
(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 $800 million and $921 million as of June 30, 2020 and December 31, 2019, respectively. In addition, $25 million and $23 million of our restricted cash balance was pledged as collateral to various non-recourse loans as of June 30, 2020 and December 31, 2019, respectively.
Schedule of Minimum Maturities of Debt The stated minimum maturities to be paid under the amortization schedule to meet the required target loan balances as of June 30, 2020 are as follows:
Future minimum maturities
(in millions)
July 1, 2020 to December 31, 2020 $ —   
2021 7   
2022 8   
2023 15   
Total $ 30   
The stated minimum maturities of non-recourse debt as of June 30, 2020, were as follows:

Future minimum maturities
(in millions)
July 1, 2020 to December 31, 2020 $ 17   
2021 25   
2022 27   
2023 53   
2024 34   
2025 31   
Thereafter 453   
Total minimum maturities $ 640   
Unamortized financing costs (14)  
Total non-recourse debt $ 626   
Summary of Components of Notes
The following table presents a summary of the components of the convertible notes:

  June 30, 2020 December 31, 2019
(in millions)
Principal $ 150    $ 150   
Accrued interest 2    2   
Less: Unamortized financing costs (2)   (3)  
Carrying value of convertible notes $ 150    $ 149   
Schedule of Long-term Debt Instruments
The following are summarized terms of the 2024 Notes and 2025 Notes.
Outstanding Principal Amount Maturity Date Stated Interest Rate Interest Payment Dates
Redemption Terms Modification Date (1)
(in millions)
2024 Notes $ 500   
(2)
 July 15, 2024 5.25  % January 15th and
July 15th		 July 15, 2021
2025 Notes $ 400    April 15, 2025 6.00  % April 15 and
October 15th		 April 15, 2022

(1)Prior to this date, we may redeem, at our option, some or all of the Senior Unsecured Notes for the outstanding principal amount plus the applicable “make-whole” premium as defined in the indenture governing the Senior Unsecured Notes plus accrued and unpaid interest through the redemption date. In addition, prior to this date, we may redeem up to 40% of the Senior Unsecured Notes using the proceeds of certain equity offerings at a price equal to 105.25% of the principal amount thereof, plus accrued but unpaid interest, if any, to, but excluding, the applicable redemption date. On, or subsequent to, this date we may redeem the Senior Unsecured Notes in whole or in part at redemption prices defined in the indenture governing the Senior Unsecured Notes, plus accrued and unpaid interest though the redemption date.
(2)We issued $150 million of the $500 million aggregate principal amount of the 2024 Notes for total proceeds of $157 million ($155 million net of issuance costs) at an effective rate of 4.13%.
The following table presents a summary of the components of the Senior Unsecured Notes:
  June 30, 2020 December 31, 2019
(in millions)
Principal $ 900    $ 500   
Accrued interest 17    13   
Unamortized premium 6    7   
Less: Unamortized financing costs (12)   (8)  
Carrying value of Notes $ 911    $ 512