|TERRAFORM GLOBAL, INC. filed this Form 10-Q on 08/09/2017|
7. LONG-TERM DEBT
Long-term debt as of June 30, 2017 and December 31, 2016 consists of the following:
As of December 31,
(In thousands, except rates)
Current Interest Rate (%)(1)
Corporate level long-term debt:
Project level long-term debt:
Total long-term debt
Less: deferred financing costs, net (3)
Less: current portion of long-term debt (4)
Consolidated long-term debt, less current portion
The weighted average effective interest rate as of June 30, 2017.
As of June 30, 2017, 8.6% of this balance had fixed interest rate debt and the remaining 91.4% had variable interest rate debt, of which a portion is hedged with interest rate swaps.
Total net debt reflects the reclassification of deferred financing costs to reduce long-term debt as further described in Note 1 - Nature of Operations.
Approximately $325.4 million and $323.3 million have been classified as current due to non-compliance with certain debt covenants as of June 30, 2017 and December 31, 2016, respectively.
Corporate Level Long-Term Debt
Revolving Credit Facility
On March 31, 2017, Global Operating LLC permanently reduced to zero and terminated the revolving commitments under the Revolver and entered into a fifth amendment (the “Fifth Amendment”) to the Revolver. The Fifth Amendment provides that Global LLC will no longer be required to deliver to the administrative agent and the other lenders party to the Revolver its annual financial statements and accompanying audit reports, unaudited quarterly financial statements, annual compliance certificates, statements of reconciliation after changes in accounting principles, annual financial plans and reconciliations of non-recourse project indebtedness pursuant to the Revolver, and removes the requirement that Global LLC and its subsidiaries comply with certain financial ratios contained in the Revolver. The Fifth Amendment requires Global Operating LLC to provide the administrative agent under the Revolver with an annual collateral verification within 90 days after the end of each fiscal year.
The Company had drawn zero on the Revolver as of June 30, 2017 and December 31, 2016. The Company issued a letter of credit for $0.4 million in August 2016 under the terms of the Revolver in support of the Alto Cielo acquisition, which remained outstanding as of December 31, 2016. The outstanding letter of credit was terminated on March 23, 2017 in connection with the Fifth Amendment.
The aggregate amount of the Senior Notes outstanding at June 30, 2017 was $753.5 million (or a notional amount of $760.4 million) and the aggregate amount outstanding at December 31, 2016 was $752.8 million (or a notional amount of $760.4 million).
Global Operating LLC received a notice of default, dated January 17, 2017, from the trustee under the indenture governing the Senior Notes with respect to the failure of Global Operating LLC to comply with its obligations under the indenture governing the Senior Notes to timely furnish the Company's Form 10-Q for the third quarter of 2016. However, no event of default under the indenture governing the Senior Notes occurred with respect to the Company's Form 10-Q for the third quarter of 2016 because such Form 10-Q was filed before an event of default under the indenture governing the Senior Notes would otherwise arise.
Global Operating LLC received a notice of default, dated May 16, 2017, from the trustee under the indenture governing the Senior Notes with respect to the failure of Global Operating LLC to comply with its obligations under the