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SEC Filings

10-Q
TERRAFORM GLOBAL, INC. filed this Form 10-Q on 08/09/2017
Entire Document
 

complete the classification of a portion of the project sites as non-agricultural use. Thus, the debt balances are classified as current as of June 30, 2017 and December 31, 2016. These defaults also prevent the Azure and ESP Urja project companies from making distributions and provide OPIC with the right to accelerate the debt maturity. The Company is currently working with OPIC to cure such defaults.
As of June 30, 2017 and December 31, 2016, the Corporate Season power plant in Malaysia has term debt from Standard Chartered Bank with an outstanding principal amount of $5.1 million and $5.1 million, respectively. The term debt matures in 2028, and bears a variable interest rate tied to the Kuala Lumpur Interbank Offered Rate. The interest rate as of June 30, 2017 and December 31, 2016 was 6.1%. Principal and interest are due and payable in arrears at the end of each fiscal quarter or on the maturity date of the credit facility.
The Silverstar Pavilion and Fortune 11 power plants in Malaysia have outstanding loans with a holder of a non-controlling interest in such power plants in the aggregate amount of $0.7 million as of June 30, 2017 and December 31, 2016 and with a fixed interest rate of 4.0%.
The Alto Cielo power plant in Uruguay has term debt from Jugler S.A. with an outstanding principal amount of $0.1 million as of June 30, 2017 and with a variable interest rate tied to value added tax.
Each of the project level financing agreements contains customary representations, covenants and warranties of the respective borrower including limitations on business activities, guarantees, environmental issues, power plant maintenance standards and a minimum debt service coverage ratio requirement. In particular, these agreements contain financial and other restrictive covenants that limit the project companies' ability to make distributions or otherwise engage in activities that may be in their long-term best interests. The project level financing agreements generally prohibit distributions from the project companies unless certain specific conditions are met, including the satisfaction of certain financial ratios.
Debt Extinguishments
On March 31, 2017, Global Operating LLC permanently reduced to zero and terminated the revolving commitments under the Revolver. As a result, a loss on extinguishment of debt of zero and $6.8 million was recognized for the three and six months ended June 30, 2017, as compared to a loss on extinguishment of debt of $0.5 million and a gain on extinguishment of debt of $5.7 million for the three and six months ended June 30, 2016, respectively.
In January 2016, the Company repurchased $41.0 million of the Senior Notes for $33.2 million and paid $1.9 million of interest and prepayment fees. In total, the Company repurchased $49.6 million of the Senior Notes for $40.0 million plus prepayment fees and interest of $2.3 million. A gain on extinguishment of debt of $6.3 million was recognized in the first quarter of 2016 related to these repurchases.
Interest Income
Interest expense in the unaudited condensed consolidated statements of operations is presented net of interest income. During the three and six months ended June 30, 2017, the Company received interest income of $1.6 million and $2.7 million, respectively, from its cash and cash equivalents balances, short-term investments and restricted deposit accounts, compared to $0.9 million and $3.2 million during the same periods in 2016.
Maturities
The aggregate amounts of contractual payments of long-term debt due after June 30, 2017, excluding amortization of debt discounts and premiums, as stated in the financing agreements, are as follows:

Maturities
(In thousands)
Within 1 Year
 
Year 1 through Year 2
 
Year 2 through Year 3
 
Year 3 through Year 4
 
Year 4 through Year 5
 
Thereafter
 
Total
Project Level
$
8,506

 
$
10,669

 
$
15,382

 
$
18,207

 
$
21,772

 
$
278,188

 
$
352,724

Corporate

 

 

 

 

 
753,490

 
753,490

Total debt
$
8,506

 
$
10,669

 
$
15,382

 
$
18,207

 
$
21,772

 
$
1,031,678

 
$
1,106,214

(1)
Represents the contractual principal payment due dates for the Company’s long-term debt and does not reflect the reclassification of $325.4 million of long-term debt to current as a result of debt defaults under a portion of its non-recourse financing agreements or deferred financing costs that are included with the net long-term balance of the unaudited condensed consolidated balance sheet.


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