Quarterly report pursuant to Section 13 or 15(d)

Nonrecourse Debt (Tables)

v3.4.0.3
Nonrecourse Debt (Tables)
3 Months Ended
Mar. 31, 2016
Debt Disclosure [Abstract]  
Schedule of Outstanding Nonrecourse Asset-Backed Debt and Bank Loans

We have outstanding the following nonrecourse asset-backed debt and bank loans (dollars in millions):

 

     Issue Date    Original Principal      Interest Rate     Maturity Date    Anticipated Balance
at Maturity
 

HASI Sustainable Yield Bond 2013-1

   December 2013    $ 100         2.79   December 2019    $ 57   

ABS Loan Agreement

   October 2014    $ 115         5.74   September 2021    $ 17   

HASI Sustainable Yield Bond 2015-1

   September 2015    $ 101         4.28   October 2034    $ —     

HASI SYB Loan Agreement 2015-1

   December 2015    $ 90         4.13 %(1)    December 2021    $ —     

HASI SYB Loan Agreement 2015-2

   December 2015    $ 42         4.63 %(1)    December 2023    $ —     

HASI SYB Loan Agreement 2015-3

   December 2015    $ 162         4.92   December 2020    $ 132   

 

(1) 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.
Schedule of Outstanding Amounts under Each Nonrecourse Asset-Backed Debt Agreements and Bank Loans and Value of Assets Pledged as Security

Outstanding amounts under the nonrecourse asset-backed debt agreements and bank loans and the value of assets pledged as security are as follows (dollars in millions):

 

     Outstanding Balance as of     Value of Assets Pledged as of,       
     March 31, 2016     December 31,
2015
    March 31,
2016
     December 31,
2015
     Description of Assets Pledged

HASI Sustainable Yield Bond 2013-1

   $ 82      $ 83      $ 98       $ 99       Financing receivables

ABS Loan Agreement

   $ 99      $ 102      $ 110       $ 117       Equity interest in Strong
Upwind Holdings I, LLC

HASI Sustainable Yield Bond 2015-1

   $ 99      $ 100      $ 139       $ 139       Financing receivables,
real estate and real estate
intangibles

HASI SYB Loan Agreement 2015-1

   $ 84      $ 90      $ 110       $ 117       Equity interest in Strong
Upwind Holdings II and
III, LLC, related interest
rate swap

HASI SYB Loan Agreement 2015-2

   $ 42      $ 42      $ 70       $ 71       Equity interest in
Buckeye Wind Energy
Class B Holdings LLC,
related interest rate swap

HASI SYB Loan Agreement 2015-3

   $ 161      $ 162      $ 174       $ 175       Residential Solar
Financing receivables

Debt issuance costs

   $ (15   $ (16        
  

 

 

   

 

 

         

Asset-backed nonrecourse debt

   $ 552      $ 563           
  

 

 

   

 

 

         

 

Schedule of Interest Rate Swaps that Are Designated as Cash Flow Hedges

In connection with several of our nonrecourse debt borrowings, we have entered into the following interest rate swaps that are designated as cash flow hedges (dollars in millions):

 

              Notional Value as of     Fair Value as of      
   

Base

Rate

  Hedged
Rate
    March 31, 2016     December 31, 2015     March 31, 2016     December 31, 2015    

Term

HASI SYB Loan Agreement 2015-1

  3 month Libor     1.55   $ 77      $ 81      $ (1.1   $ (0.3   December 2015 to September 2021

HASI SYB Loan Agreement 2015-2

  3 month Libor     1.52   $ 37      $ 38      $ (0.6   $ (0.1   December 2015 to December 2018

HASI SYB Loan Agreement 2015-2

  3 month Libor     2.55   $ 29      $ 29      $ (0.8   $ (0.2   December 2018 to December 2024

HASI SYB Loan Agreement 2015-3

  1 month Libor     2.34   $ 119      $ —        $ (1.6   $ —        November 2020 to August 2028
     

 

 

   

 

 

   

 

 

   

 

 

   

Total

      $ 262      $ 148      $ (4.1   $ (0.6  
     

 

 

   

 

 

   

 

 

   

 

 

   

 

Additional Information Related to Other Nonrecourse Debt by Interest Rate

Additional information related to other nonrecourse debt by interest rate is as follows:

 

As of March 31, 2016

   Balance      Maturity  
     (dollars in millions)  

Fixed-rate promissory notes, interest rates from 2.26% to 5.00% per annum

   $ 31         2017 to 2032   

Fixed-rate promissory notes, interest rates from 5.01% to 6.50% per annum

     42         2017 to 2031   

Fixed-rate promissory notes, interest rates from 6.51% to 8.00% per annum

     21         2019 to 2031   
  

 

 

    

Other nonrecourse debt

   $ 94      
  

 

 

    

 

As of December 31, 2015

   Balance      Maturity  
     (dollars in millions)  

Fixed-rate promissory notes, interest rates from 2.26% to 5.00% per annum

   $ 33         2017 to 2032   

Fixed-rate promissory notes, interest rates from 5.01% to 6.50% per annum

     46         2017 to 2031   

Fixed-rate promissory notes, interest rates from 6.51% to 8.00% per annum

     22         2019 to 2031   
  

 

 

    

Other nonrecourse debt

   $ 101      
  

 

 

    

 

Schedule of Minimum Maturities of Nonrecourse Debt

The stated minimum maturities of nonrecourse debt as of March 31, 2016, were as follows:

 

     Nonrecourse Debt  

As of March 31,

   Asset Backed
Nonrecourse Notes
     Other Nonrecourse
Debt
             Total          
     (dollars in millions)  

2016

   $ 31       $ 16       $             47   

2017

     31         13         44   

2018

     31         6         37   

2019

     92         4         96   

2020

     164         5         169   

Thereafter

     218         50         268   
  

 

 

    

 

 

    

 

 

 
   $ 567       $ 94       $ 661   

Deferred financing costs, net

     (15      —           (15
  

 

 

    

 

 

    

 

 

 
   $ 552       $ 94       $ 646