Annual report pursuant to Section 13 and 15(d)

Long-term Debt (Tables)

v3.22.4
Long-term Debt (Tables)
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Schedule of Outstanding Asset-Backed Non-Recourse Debt and Bank Loans
We have outstanding the following asset-backed non-recourse debt and bank loans:
  Outstanding
Balance as of
December 31,		 Interest Rate Maturity Date Anticipated
Balance at
Maturity		 Carrying Value of
Assets Pledged
as of December 31,		 Description of Assets
Pledged
  2022 2021 2022 2021
  (dollars in millions)
HASI Sustainable Yield Bond 2015-1A $ 73  $ 77  4.28  % October 2034 $ —  $ 136  $ 139  Receivables, real estate, real estate intangibles, and restricted cash
HASI SYB Trust 2016-2 56  62  4.35  % April 2037 —  63  70  Receivables and restricted cash
HASI SYB Trust 2017-1 141  146  3.86  % March 2042 —  231  208  Receivables, real estate, real estate intangibles, and restricted cash
Lannie Mae Series 2019-1 90  93  3.68  % January 2047 —  120  110  Receivables, real estate, real estate intangibles, and restricted cash
Other non-recourse debt (1)
82  62 
3.15% - 7.45%
 2022 to 2032 18  82  65  Receivables
Unamortized financing costs (9) (10)
Non-recourse debt (2)
$ 433  $ 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 $632 million and $592 million as of December 31, 2022 and December 31, 2021, respectively, which includes $20 million and $19 million of restricted cash balance was pledged for debt service as of December 31, 2022 and December 31, 2021, respectively.
Schedule of Minimum Maturities of Non-Recourse Debt
The stated minimum maturities of non-recourse debt as of December 31, 2022, were as follows:

Year Ending December 31, Future minimum
maturities
  (in millions)
2023 $ 28 
2024 29 
2025 27 
2026 26 
2027 34 
Thereafter 298 
Total minimum maturities 442 
Unamortized financing costs (9)
Total non-recourse debt $ 433 
Principal and interest payments which were due under the term loan facility as of December 31, 2022 are as follows:
Year Ending December 31, Future maturities
(in millions)
2023 $ 15 
2024 18 
2025 351 
Total $ 384 
Less: Unamortized financing costs (4)
Carrying Value $ 380 
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 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:
As of and for the year ended December 31,
2022 2021
  (in millions)
Principal $ 1,775  $ 1,775 
Accrued interest 12  12 
Unamortized premium (discount) (3) (3)
Less: Unamortized financing costs (16) (21)
Carrying value of Senior Unsecured Notes $ 1,768  $ 1,763 
Interest expense $ 77  $ 72 
Schedule of Components of Convertible Notes
The following are summarized terms of the Convertible Notes as of December 31, 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 20.7767 $48.13 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 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)In March 2022, we exercised a redemption option to call the remaining $8.1 million of 2022 Convertible Senior Notes. $7.6 million principal of the notes was converted prior to the effectiveness of the redemption option, with the remaining notes being redeemed for cash of $0.5 million
(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 $205 million.
The following table presents a summary of the components of our Convertible Notes:
As of and for the year ended December 31,
  2022 2021
  (in millions)
Principal $ 344  $ 152 
Premium 5  — 
Less: Unamortized financing costs (5) (2)
Carrying value of Convertible Senior Notes $ 344  $ 150 
Interest expense $ 7  $ 6