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SEC Filings

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

The SunEdison Bankruptcy could result in a liquidation of SunEdison, which may have a material adverse effect on our business, results of operations and financial condition in light of our ongoing utilization of SunEdison for business and operational services and projects. A disorganized liquidation would increase the risk of a material adverse effect on our business.    
Acquisition and Related Costs
Acquisition, formation and related costs totaled $39.4 million for the year ended December 31, 2015. These costs were related to the IPO and formation and acquisition costs associated with the acquisitions completed and pending completion as of December 31, 2015. There were no such costs incurred during the year ended December 31, 2014.
Depreciation, Accretion and Amortization
Depreciation, accretion and amortization expense increased $21.6 million during the year to $28.8 million for the year ended December 31, 2015 due to additional projects achieving commercial operation and additional power plants acquired compared to the year ended December 31, 2014.
Provision for Contingent Loss on Deposit for Acquisitions
Provision for contingent loss on deposit for acquisitions totaled $231.0 million for the year ended December 31, 2015. See Item 15. Note 5 - Deposits for Acquisitions for information regarding the 425 MW India Projects. During 2016, the Company became aware that there is a substantial risk that the 425 MW India Projects may not be completed and transferred to the Company in accordance with the India PSA. In April 2016, the Company filed a verified complaint against SunEdison (see Item 15. Note 17 - Commitments and Contingencies). The complaint asserts claims for breach of fiduciary duty, breach of contract and unjust enrichment relating to the failure by SunEdison to transfer the equity interests in the 425 MW India Projects. In addition, during April 2016, SunEdison filed for protection under Chapter 11 of the U.S. Bankruptcy Code. The Company determined that the deposit for acquisition of the 425 MW India Projects was not realizable as of December 31, 2015 and recorded a provision for contingent loss of $231.0 million. There were no such costs incurred during the year ended December 31, 2014.
Loss on Extinguishment of Debt, net
A loss on the extinguishment of debt, net of $2.3 million was recognized for the year ended December 31, 2015, primarily due to the prepayment and termination of project level indebtedness related to several power plants and repurchase of the Senior Notes. There were no extinguishments of debt during the year ended December 31, 2014.
Interest Expense, net
Interest expense, net was $107.6 million and $24.3 million for the year ended December 31, 2015 and 2014, respectively, an increase of $83.4 million. The increase was primarily due to interest and amortization of deferred financing costs under our Bridge Facility, which was drawn in December 2014 and outstanding through the second quarter of 2015, and the Senior Notes issued during the third quarter of 2015.
Loss on Foreign Currency Exchange, net
Net loss on foreign currency exchange was $35.4 million for the year ended December 31, 2015 versus a gain of $4.0 million for the year ended December 31, 2014, a change of $39.4 million. This increased net loss is primarily due to new hedging activities initiated as of the IPO. Components of loss (gain) are as follows:
 
 
Year Ended December 31,
 
 
(in thousands)
 
2015
 
2014
 
Change
Foreign currency forward contracts loss (gain)
 
 
 
 
 


Investment in power plants
 
$
60,821

 
$

 
$
60,821

Cash generated by foreign subsidiaries
 
(27,679
)
 

 
(27,679
)
 
 
$
33,142

 
$

 
$
33,142

 
 
 
 
 
 
 
Plant assets and liabilities denominated in other currencies
 
2,221

 
(4,038
)
 
6,259

Total loss (gain) on foreign currency exchange, net
 
$
35,363

 
$
(4,038
)
 
$
39,401



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