Quarterly report pursuant to Section 13 or 15(d)

Long-term Debt (Tables)

v3.21.2
Long-term Debt (Tables)
 9 Months Ended
Sep. 30, 2021
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
  September 30, 2021 December 31, 2020 Interest
Rate		 Maturity Date September 30, 2021 December 31, 2020 Description
of Assets Pledged
(dollars in millions)
HASI Sustainable Yield Bond 2015-1A $ 78  $ 81  4.28% October 2034 $ —  $ 133  $ 134  Receivables, real estate and real estate intangibles
HASI Sustainable Yield Bond 2015-1B Note (1)
—  13  5.41% October 2034 —  133  134  Class B Bond of HASI Sustainable Yield Bond 2015-1
HASI SYB Trust 2016-2 66  67  4.35% April 2037 —  66  71  Receivables
HASI ECON 101 Trust (2)
—  126  3.57% May 2041 —  —  133  Receivables and investments
HASI SYB Trust 2017-1 147  150  3.86% March 2042 —  203  205  Receivables, real estate and real estate intangibles
Lannie Mae Series 2019-01 93  95  3.68% January 2047 —  107  107  Receivables, real estate and real estate intangibles
Other non-recourse
debt (3)
65  73 
3.15% - 7.45%
 2022 to 2032 18  65  73  Receivables
Unamortized financing costs (11) (12)
Non-recourse debt (4)
$ 438  $ 593 
(1)The Company repurchased this note in April of 2021.
(2)In March 2021, contractual terms were modified resulting in the deconsolidation of both this debt and the related pledged assets. We recognized a loss of approximately $3 million, which is included in gain on sale of receivables and investments in our income statement.
(3)Other non-recourse debt consists of various debt agreements used to finance certain of our receivables. Scheduled debt service payment requirements 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 $574 million and $723 million as of September 30, 2021 and December 31, 2020, respectively. In addition, $25 million and $23 million of our restricted cash balance was pledged as collateral to various non-recourse loans as of September 30, 2021 and December 31, 2020, respectively.
Schedule of Minimum Maturities of Debt
The stated minimum maturities of non-recourse debt as of September 30, 2021, were as follows:

Future minimum maturities
(in millions)
October 1, 2021 to December 31, 2021 $ 11 
2022 23 
2023 26 
2024 30 
2025 26 
2026 25 
Thereafter 308 
Total minimum maturities $ 449 
Unamortized financing costs (11)
Total non-recourse debt $ 438 
Schedule of Long-term Debt Instruments
The following are summarized terms of the Senior Unsecured Notes:
Outstanding Principal Amount Maturity Date Stated Interest Rate Interest Payment Dates Redemption Terms Modification Date
(in millions)
2024 Notes $ — 
(1)
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 (2)
2026 Notes 1,000  June 15, 2026 3.38  % June 15 and December 15
March 15, 2026 (2)
2030 Notes 375 
(3)
 September 15, 2030 3.75  % February 15th and August 15th
September 15, 2022 (4)

(1)The first $350 million issuance of 2024 Notes was priced at par. We subsequently 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 interest rate of 4.13%. The 2024 Notes were redeemed in June 2021 using a portion of the proceeds from the 2026 Notes. We recognized a loss of $15 million upon redemption for the redemption premium and the acceleration of debt issuance cost and premium amortization which is recorded in interest expense in our income statement.
(2)Prior to this date, we may redeem, at our option, some or all of the 2025 Notes or 2026 Notes for the outstanding principal amount plus the applicable “make-whole” premium as defined in the indenture governing the 2025 Notes or 2026 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 par plus the coupon percentage 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 2025 Notes or 2026 Notes in whole or in part at redemption prices defined in the indenture governing the 2025 Notes or 2026 Notes, plus accrued and unpaid interest though the redemption date.
(3)We issued the $375 million aggregate principal amount of the 2030 Notes for total proceeds of $371 million ($367 million net of issuance costs) at an effective interest rate of 3.87%.
(4)Prior to this date, we may, at our option on one or more occasions redeem up to 40% of the 2030 Notes using the proceeds of certain equity offerings at a price equal to 103.75% of the principal amount thereof; plus accrued but unpaid interest, if any, to, but excluding the applicable redemption date. At any point prior to maturity, we may redeem, at our option, some or all of the 2030 Notes plus the applicable “make-whole” premium as defined in the indenture governing the 2030 Notes plus accrued and unpaid interest through the redemption date.
The following table presents a summary of the components of the Senior Unsecured Notes:
  September 30, 2021 December 31, 2020
(in millions)
Principal $ 1,775  $ 1,275 
Accrued interest 21  22 
Unamortized premium (discount) (3) 2 
Less: Unamortized financing costs (22) (16)
Carrying value of Senior Unsecured Notes $ 1,771  $ 1,283 
The following are summarized terms of the Convertible Senior Notes as of September 30, 2021:
Outstanding Principal Amount Maturity Date Stated Interest Rate Interest Payment Dates Conversion Ratio Conversion Price Issuable Shares
Dividend Threshold Amount (1)
(in millions) (in millions)
2022 Convertible Senior Notes $ 14 
(2)
 September 1,
2022		 4.125  % March 1 and September 1 36.8088 $27.17 0.5 $0.33
2023 Convertible Senior Notes 144  August 15,
2023		 0.000  % N/A 20.6853 $48.34 3.0 $0.34
(1)The conversion ratio is subject to adjustment for dividends declared above these amounts per share per quarter and certain other events that may be dilutive to the holder.
(2)During the quarter ended September 30, 2021, $136 million in principal amount of 2022 Convertible Senior Notes were converted into 5 million shares of common stock.
Schedule of Components of Notes
The following table presents a summary of the components of the Convertible Senior Notes:

  September 30, 2021 December 31, 2020
(in millions)
Principal $ 158  $ 294 
Accrued interest —  2 
Less: Unamortized financing costs (3) (5)
Carrying value of Convertible Senior Notes
 $ 155  $ 291