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SEC Filings

10-Q
TERRAFORM GLOBAL, INC. filed this Form 10-Q on 06/27/2017
Entire Document
 

6. 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 eight VIEs in entities that were consolidated as of March 31, 2017, each of which existed and was consolidated as of December 31, 2016. The VIEs own and operate power plants in order to generate contracted cash flows.
As disclosed in Note 2 - Acquisitions, in October 2016, the Company entered into arrangements with SunEdison for the transfer of the balance of the equity interests in the Millenium and SE 25 solar power plants in India, in each case following the expiration of the equity lock-up period in the applicable PPAs in January and March 2017, respectively, and without further action by SunEdison. In accordance with these arrangements, in January 2017, the balance of 26.0% of the equity interests in Millenium was transferred to the Company. In March 2017, 100.0% of the equity interests in SE 25 were transferred to the Company. As a result of the transfer of equity interest in Millenium and SE 25, these power plants are no longer considered VIEs as of March 31, 2017.

The carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in the Company’s unaudited condensed consolidated balance sheets are as follows:
(In thousands)
As of
March 31, 2017
 
As of December 31, 2016
Current assets
$
175,695

 
$
186,739

Non-current assets
381,565

 
423,315

Total assets
$
557,260

 
$
610,054

Current liabilities
$
392,732

 
$
386,297

Non-current liabilities
111,625

 
162,793

Total liabilities
$
504,357

 
$
549,090

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 by using VIE resources.

7. LONG-TERM DEBT
Long-term debt as of March 31, 2017 and December 31, 2016 consists of the following:
 
As of March 31,
 
As of December 31,
 
 
 
 
 
 
 
(In thousands, except rates)
2017
 
2016
 
Interest Type
 
Current Interest Rate (%)(1)
 
Financing Type
Corporate level long-term debt:
 
 
 
 
 
 
 
 
 
 
Senior Notes
$
753,152

 
$
752,813

 
Fixed
 
9.80%
 
 
Term debt
Project level long-term debt:
 
 
 
 
 
 
 
 
 
 
Permanent financing
356,688

 
351,607

 
Blended
 
11.9%
(2) 
 
Term debt
Total long-term debt
1,109,840

 
1,104,420

 
 
 
 
 
 
 
Less: deferred financing costs, net (3)
17,871

 
18,352

 
 
 
 
 
 
 
Less: current portion of long-term debt (4)
331,467

 
327,459

 
 
 
 
 
 
 
Consolidated long-term debt, less current portion
$
760,502

 
$
758,609

 
 
 
 
 
 
 
(1)
The weighted average effective interest rate as of March 31, 2017.
(2)
As of March 31, 2017, 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.
(3)
Total net debt reflects the reclassification of deferred financing costs to reduce long-term debt as further described in Note 1 - Nature of Operations and Basis of Presentation.
(4)
Approximately $328.0 million and $323.3 million have been classified as current due to non-compliance with certain debt covenants as of March 31, 2017 and December 31, 2016, respectively.

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