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SEC Filings

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

result of the notice from SunEdison purporting to terminate the Interest Payment Agreement in July 2016, we do not expect SunEdison to perform under the Interest Payment Agreement going forward, including its obligation to pay to us up to an aggregate amount of $40.0 million in 2017, $30.0 million in 2018, $20.0 million in 2019 and $10.0 million in 2020, plus any interest due on any payment not remitted when due. See “- Liquidity and Capital Resources - Interest Payment Agreement” above. We also expect to incur higher costs as we transition away from our historic dependence on SunEdison for corporate, management, administrative, project and other services and perform these services ourselves or hire substitute providers. See “- Consolidated Results of Operations - Year Ended December 31, 2015 Compared to Year Ended December 31, 2014 - General and Administrative Expense” above. In addition, our exploration of strategic alternatives involves certain risks and uncertainties, which may, among other things, disrupt our business or adversely impact our revenue, operating results and financial condition. For additional information on these and other factors that may adversely affect the amount of cash available for distribution and, in turn, our ability to pay any dividend in future periods, see “Item 1A. Risk Factors - Risks Inherent in an Investment in TerraForm Global, Inc. - We may not be able to pay comparable or growing cash dividends to holders of our Class A common stock in the future.” Please refer to the disclosures included elsewhere in this annual report on Form 10-K (including those under Item 1A. Risk Factors) for additional information about the adverse impact of the SunEdison Bankruptcy on us and other risks and uncertainties we face.
Global LLC is a holding company and will be dependent on receiving cash distributions from Global Operating LLC in order to fund quarterly distributions to its unit holders, including the Company. Global Operating LLC is also a holding company and will in turn be dependent on receiving cash distributions from its project companies to fund any distributions to Global LLC. The ability of such project companies to make cash distributions to Global Operating LLC may be restricted by, among other things, the provisions of existing and future indebtedness or other financing agreements, applicable national, provincial, state and local corporation laws and other laws and regulations, such as capital controls that either restrict investment by foreign sources, restrict the transfer of capital to foreign recipients, or both. Some of the jurisdictions in which the power plants in our portfolio are located impose material limitations on their ability to make cash distributions to Global Operating LLC.
On February 29, 2016, the Company declared a dividend for the fourth quarter of 2015 on the Company’s Class A common stock of $0.275 per share, or $1.100 per share on an annualized basis.  The dividend was paid on March 17, 2016 to stockholders of record as of March 10, 2016. No dividends were paid to SunEdison on its Class B common stock in light of SunEdison’s unpaid liabilities to the Company. We have not declared or paid a dividend for the first, second, or third quarter of 2016. As a result of the SunEdison Bankruptcy, the limitations on our ability to access the capital markets for our corporate debt and equity securities, and other risks that we face as detailed in this annual report, we believe it is prudent to defer any decisions on paying dividends to our stockholders for the time being.
Cash Flow Discussion
We use traditional measures of cash flow, including net cash used in operating activities, net cash used in investing activities and net cash provided by financing activities to evaluate our periodic cash flow results.
Year Ended December 31, 2015 Compared to Year Ended December 31, 2014
The following table reflects the changes in cash flows for the comparative periods:
(In thousands)
 
Year Ended December 31,
 
 
 
2015
 
2014
 
Change
Net cash provided by operating activities
 
$
9,621

 
$
15,060

 
$
(5,439
)
Net cash used in investing activities
 
(752,464
)
 
(231,853
)
 
(520,611
)
Net cash provided by financing activities
 
1,536,959

 
365,519

 
1,171,440

Net Cash Provided By Operating Activities
Net cash provided by operating activities for the year ended December 31, 2015 was $9.6 million, compared to net cash provided by operating activities for year ended December 31, 2014 of $15.1 million. The decrease in net cash used in operations of $5.4 million was primarily driven by increased operating costs paid due to additional projects reaching commercial operation and acquisitions.
Net Cash Used In Investing Activities
Net cash used in investing activities for the year ended December 31, 2015 was $752.5 million, compared to net cash used in operating activities for year ended December 31, 2014 of $231.9 million. The increase in net cash used in investing


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