Quarterly report pursuant to Section 13 or 15(d)

Long-term Debt (Tables)

v3.22.2.2
Long-term Debt (Tables)
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Outstanding Non-Recourse Asset-Backed Debt
We have outstanding the following asset-backed non-recourse debt:

  Outstanding Balance
as of		 Anticipated
Balance at
Maturity		 Carrying Value of Assets Pledged as of
  September 30, 2022 December 31, 2021 Interest
Rate		 Maturity Date September 30, 2022 December 31, 2021 Description
of Assets Pledged
(dollars in millions)
HASI Sustainable Yield Bond 2015-1A $ 74  $ 77  4.28% October 2034 $ —  $ 137  $ 139  Receivables, real estate and real estate intangibles
HASI SYB Trust 2016-2 61  62  4.35% April 2037 —  67  70  Receivables
HASI SYB Trust 2017-1 143  146  3.86% March 2042 —  231  208  Receivables, real estate and real estate intangibles
Lannie Mae Series 2019-1 91  93  3.68% January 2047 —  120  110  Receivables, real estate and real estate intangibles
Other non-recourse
debt (1)
49  62 
3.15% - 7.23%
 2023 to 2032 18  51  65  Receivables
Unamortized financing costs (10) (10)
Non-recourse debt (2)
$ 408  $ 430 
(1)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.
(2)The total collateral pledged against our non-recourse debt was $606 million and $592 million as of September 30, 2022 and December 31, 2021, respectively. These amounts include $24 million and $19 million of restricted cash pledged for debt service payments as of September 30, 2022 and December 31, 2021, respectively.
Schedule of Minimum Maturities of Debt
The stated minimum maturities of non-recourse debt as of September 30, 2022, were as follows:

Future minimum maturities
(in millions)
October 1, 2022 to December 31, 2022 $ 11 
2023 25 
2024 28 
2025 25 
2026 24 
2027 33 
Thereafter 272 
Total minimum maturities $ 418 
Unamortized financing costs (10)
Total non-recourse debt $ 408 
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)
2025 Notes $ 400  April 15, 2025 6.00  % April 15 and
October 15th
April 15, 2022 (1)
2026 Notes 1,000  June 15, 2026 3.38  % June 15 and December 15
March 15, 2026 (1)
2030 Notes 375 
(2)
 September 15, 2030 3.75  % February 15th and August 15th
September 15, 2022 (3)

(1)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.
(2)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%.
(3)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, 2022 December 31, 2021
(in millions)
Principal $ 1,775  $ 1,775 
Accrued interest 23  12 
Unamortized premium (discount) (3) (3)
Less: Unamortized financing costs (18) (21)
Carrying value of Senior Unsecured Notes $ 1,777  $ 1,763 
The following are summarized terms of the Convertible Notes as of September 30, 2022:
Outstanding Principal Amount Maturity Date Stated Interest Rate Interest Payment Dates Conversion/Exchange Ratio Conversion/Exchange Price Issuable Shares
Dividend Threshold Amount (1)
(in millions) (in millions)
2022 Convertible Senior Notes $ — 
(2)
 September 1,
2022		 4.125  % March 1 and September 1 36.8366 $27.15 — $0.330
2023 Convertible Senior Notes 144  August 15,
2023		 0.000  % N/A 20.7278 $48.24 3.0 $0.340
2025 Exchangeable Senior Notes 200 
(3)
 May 1,
2025		 0.000  % N/A 17.6873 $56.54 3.5 $0.375
(1)The conversion or exchange 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 nine months ended September 30, 2022, the $8 million in principal amount of 2022 Convertible Senior Notes which were outstanding as of December 31, 2021 were converted into 282,678 shares of common stock.
(3)The 2025 Exchangeable Senior Notes accrete to a premium at maturity equal to 3.25% per annum. The current balance including accreted premium is $203 million.
Schedule of Components of Convertible Notes
The following table presents a summary of the components of our Convertible Notes:

  September 30, 2022 December 31, 2021
(in millions)
Principal $ 344  $ 152 
Accrued interest —  — 
Premium 3  — 
Less: Unamortized financing costs (5) (2)
Carrying value of Convertible Notes
 $ 342  $ 150