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SEC Filings

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

Capitalized Interest
Interest expense consisting of amortization of deferred financing costs and amounts incurred on funds borrowed to finance construction of solar or wind energy systems is capitalized until the system is ready for its intended use. During the years ended December 31, 2015 and 2014, the Company capitalized $1.8 million and $1.6 million of interest, respectively. Capitalized interest is found within the Power Plants, net line item on the Company's consolidated balance sheets.
Interest Income
Interest expense in the consolidated statement of operations is presented net of interest income. During the year ended December 31, 2015 and 2014, the Company received interest income of $2.6 million and $1.4 million, respectively, from its cash and cash equivalents balances, short-term investments and restricted deposit accounts. No interest income was received during the year ended December 31, 2013.
Maturities
The aggregate amounts of payments on long-term debt due after December 31, 2015 excluding amortization of debt discounts and premiums, as stated in the financing agreements, are as follows:
(In thousands)
 
2016 (1)
 
2017
 
2018
 
2019
 
2020
 
Thereafter
 
Total
Corporate
 
$

 
$

 
$

 
$
135,000

 
$

 
$
801,395

 
$
936,395

Project level
 
11,044

 
10,721

 
10,079

 
13,555

 
17,318

 
310,223

 
372,940

Total
 
$
11,044

 
$
10,721

 
$
10,079

 
$
148,555

 
$
17,318

 
$
1,111,618

 
$
1,309,335

(1)
Represents the contractual principal payment due dates for our long-term debt and does not reflect the reclassification of $319.0 million of long-term debt to current as a result of debt defaults under a portion of our non-recourse financing agreements.
As described above, on September 8, 2016, the Company repaid the $135.0 million balance on the Revolver in connection with the consent solicitation of its Senior Notes and entered into the Second Supplemental Indenture.
Subsequent Events
Event of Default
On April 21, 2016, SunEdison and certain of its domestic and international subsidiaries voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code (the “SunEdison Bankruptcy”). Our corporate level revolving credit facility and indenture do not include an event of default provision triggered by the SunEdison Bankruptcy. However, the project level financing agreements for our two remaining levered power plants in India and our three power plants in South Africa contain provisions that provide the lenders with the right to accelerate debt maturity due to the SunEdison Bankruptcy with SunEdison being an original sponsor of the project and/or party to certain material project agreements, such as O&M and EPC related contracts. In addition, certain audited financial statements at the project level have been delayed, which created defaults at the project level for our levered power plants. If not cured or waived, these defaults may restrict the ability of the project companies to make distributions to us or provide the lenders with the right to accelerate debt maturity. As of December 31, 2015 and October 31, 2016, the outstanding debt balances of these power plants were reclassified to current. We are currently working with the applicable project lenders to obtain waivers and/or forbearance agreements as we seek to cure such defaults; however, no assurances can be given that such waivers and/or forbearance agreements will be obtained.
On June 16, 2016, Global Operating LLC received a breach of agreement notice from one of its foreign currency hedging counterparties under the International Swap Dealers Association, Inc. (ISDA) Master Agreement dated August 6, 2015 (the “ISDA Agreement”). The notice stated that because the applicable foreign currency hedging counterparty did not receive the audited financial statements of the Company within 120 days following the end of the fiscal year, as required under the ISDA Agreement, there would be an event of default under the ISDA Agreement if this deficiency is not remedied within 30 days after the date of the notice. On July 19, 2016 the Company and the applicable foreign currency hedging counterparty entered into an amendment to the ISDA Agreement (the “Amendment”). The Amendment extended the date by which the Company must deliver to the applicable foreign currency hedging counterparty the financial statements of the Company for the year ended December 31, 2015 to the date such statements are to be delivered under the Revolver. See above in this Note 9 - Long-Term Debt for additional information on the date such statements are to be delivered under the Revolver.


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