Quarterly report pursuant to Section 13 or 15(d)

Nonrecourse Debt (Tables)

v3.5.0.2
Nonrecourse Debt (Tables)
9 Months Ended
Sep. 30, 2016
Debt Disclosure [Abstract]  
Schedule of Outstanding Asset-Backed Nonrecourse Debt and Bank Loans

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

 

    Outstanding Balance as of                       Value of Assets Pledged
as of
     
    September 30,
2016
    December 31,
2015
    Interest
Rate
    Maturity Date     Anticipated
Balance at
Maturity
    September 30,
2016
    December 31,
2015
   

Description of
Assets Pledged

HASI Sustainable Yield Bond 2013-1

  $ 77      $ 83        2.79     December 2019      $ 57      $ 93      $ 99      Financing receivables

ABS Loan Agreement

  $ 92      $ 102        5.74     September 2021     $ 17      $ 100      $ 117      Equity interest in Strong Upwind Holdings I, LLC

HASI Sustainable Yield Bond 2015-1

  $ 98      $ 100        4.28     October 2034      $ —        $ 138      $ 139      Financing receivables, real estate and real estate intangibles

HASI SYB Loan Agreement 2015-1

  $ 76      $ 90        4.34 (1)      December 2021      $ —        $ 100      $ 117      Equity interest in Strong Upwind Holdings II and III, LLC, related interest rate swap

HASI SYB Loan Agreement 2015-2

  $ 41      $ 42        4.92 (1)      December 2023      $ —        $ 70      $ 71      Equity interest in Buckeye Wind Energy Class B Holdings LLC, related interest rate swap

HASI SYB Loan Agreement 2015-3

  $ 152      $ 162        4.92     December 2020      $ 132      $ 176      $ 175      Residential Solar Financing receivables

Other nonrecourse debt (2)

  $ 88      $ 101        2.26 % - 7.45%      2017 to 2032      $ —        $ 86      $ 97      Financing receivables

Debt issuance costs

  $ (14   $ (16            
 

 

 

   

 

 

             

Nonrecourse debt

  $ 610      $ 664               
 

 

 

   

 

 

             

 

(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.
(2) Other nonrecourse debt consists of various debt agreements used to finance certain of our financing receivables for the term of the financing receivables. Debt service payment requirements, in a majority of cases, are equal to or less than the cash flows received from the underlying financing receivables.
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
    September 30,
2016
     December 31,
2015
     September 30,
2016
    December 31,
2015
    Term

HASI SYB Loan Agreement 2015-1

    
 
3 month
Libor
  
  
     1.55   $ 70       $ 81       $ (0.8   $ (0.3   December 2015 to
September 2021

HASI SYB Loan Agreement 2015-2

    

 

3 month

Libor

  

  

     1.52   $ 37       $ 38       $ (0.4   $ (0.1   December 2015 to
December 2018

HASI SYB Loan Agreement 2015-2

    

 

3 month

Libor

  

  

     2.55   $ 29       $ 29       $ (1.1   $ (0.2   December 2018 to
December 2024

HASI SYB Loan Agreement 2015-3

    
 
1 month
Libor
  
  
     2.34  

$

119

  

   $ —         $ (3.9   $ —        November 2020 to
August 2028
       

 

 

    

 

 

    

 

 

   

 

 

   

Total

        $ 255       $ 148       $ (6.2   $ (0.6  
Schedule of Minimum Maturities of Nonrecourse Debt

The next 12-months of stated minimum maturities of nonrecourse debt are as follows:

 

As of September 30,

   (dollars in millions)  

2016

   $ 49   

2017

     40   

2018

     38   

2019

     95   

2020

     164   

Thereafter

     238   
  

 

 

 
   $ 624   

Deferred financing costs, net

     (14
  

 

 

 

Total nonrecourse debt

   $ 610