|TERRAFORM GLOBAL, INC. filed this Form 10-K on 12/21/2016|
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,
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)
Current Interest Rate (%) (1)
Corporate level long-term debt:
Bridge Credit Facility
Revolving Credit Facility
Revolving line of credit
Senior Notes due 2022
Project level long-term debt:
Total long-term debt
Less current portion of long-term debt (4)
Consolidated long-term debt, less current portion
The weighted average effective interest rate as of December 31, 2015.
As of December 31, 2015, no facilities have construction financing.
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.
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.