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SEC Filings

10-K
TERRAFORM GLOBAL, INC. filed this Form 10-K on 12/21/2016
Entire Document
 

8. VARIABLE INTEREST ENTITIES
The Company consolidates any variable interest entities (“VIEs”) in power plants in which it is the primary beneficiary. The Company is the primary beneficiary of fourteen VIEs in power plants that were consolidated as of December 31, 2015, five of which existed and were consolidated as of December 31, 2014. The VIEs own and operate power plants in order to generate contracted cash flows. No VIEs were deconsolidated during the years ended December 31, 2015 and 2014.
The carrying amounts and classification of the consolidated VIE assets and liabilities included in the Company’s consolidated balance sheets are as follows:
 
 
As of December 31,
(In thousands)
 
2015
 
2014
Current assets
 
$
212,295

 
$
30,878

Non-current assets
 
579,069

 
210,781

Total assets
 
$
791,364

 
$
241,659

Current liabilities
 
$
370,395

 
$
5,000

Non-current liabilities
 
80,158

 
235,265

Total liabilities
 
$
450,553

 
$
240,265

The amounts shown in the table above exclude intercompany balances which are eliminated upon consolidation. All of the assets in the table above are restricted for settlement of the VIE obligations, and all of the liabilities in the table above can only be settled using VIE resources.
As disclosed in Note 3 - Acquisitions, the Company acquired the equity interest in the FERSA Projects in October 2015 and as of December 31, 2015, the Company is not the primary beneficiary and thus has not consolidated the acquired power plants, but has recorded this investment as an equity method investment. Based on the adoption of ASU 2015-02 in 2016, the Company will consolidate the assets and liabilities of the FERSA Projects as of January 1, 2016.

9. LONG-TERM DEBT
Long-term debt consists of the following:
 
 
As of December 31,
 
 
 
 
(In thousands, except rates)
 
2015
 
2014
 
Interest Type
 
Current Interest Rate (%) (1)
 
Financing Type
Corporate level long-term debt:
 
 
 
 
 
 
 
 
 
 
 
Bridge Credit Facility
 
$

 
$
150,000

 
 
n/a
 
 
Term debt
Revolving Credit Facility
 
135,000

 

 
Variable
 
3.28%
 
 
Revolving line of credit
Senior Notes due 2022
 
791,826

 

 
Fixed
 
9.75%
 
 
Term debt
Project level long-term debt:
 
 
 
 
 
 
 
 
 
 
 
Construction financing
 

 
20,485

 
Variable
 
n/a
(2) 
 
Construction debt
Permanent financing
 
368,935

 
353,626

 
Blended
 
12.17%
(3) 
 
Term debt
Total long-term debt
 
1,295,761

 
524,111

 
 
 
 
 
 
 
Less current portion of long-term debt (4)
 
327,714

 
31,542

 
 
 
 
 
 
 
Consolidated long-term debt, less current portion
 
$
968,047

 
$
492,569

 
 
 
 
 
 
 
(1)
The weighted average effective interest rate as of December 31, 2015.
(2)
As of December 31, 2015, no facilities have construction financing.
(3)
As of December 31, 2015, 8.8% of this balance had fixed interest rate debt and the remaining 91.2% had variable interest rate debt, of which a portion is hedged with interest rate swaps.
(4)
Approximately $319.0 million of long-term debt has been classified as current due to non-compliance with certain debt covenants as of December 31, 2015.



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