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SEC Filings

10-Q
TERRAFORM GLOBAL, INC. filed this Form 10-Q on 11/08/2017
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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
Gains and losses on extinguishment of debt recognized for the three months ended September 30, 2017 and 2016, respectively, were immaterial amounts.
During the nine months ended September 30, 2017, the Company permanently reduced to zero and terminated the revolving commitments under the Revolver. As a result, a loss on extinguishment of debt of $6.7 million was recognized for the same period. During the nine months ended September 30, 2016, a gain on extinguishment of debt of $5.7 million was recognized due to repurchases of Senior Notes in January 2016.
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 nine months ended September 30, 2017, the Company received interest income of $2.2 million and $5.0 million, respectively, from its cash and cash equivalents balances, short-term investments and restricted deposit accounts, compared to $0.9 million and $4.1 million during the same periods in 2016.
Maturities
The aggregate amounts of contractual payments of long-term debt due after September 30, 2017, excluding amortization of debt discounts and premiums, as stated in the financing agreements, are as follows:

Maturities (1)
(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
$
15,584

 
$
16,857

 
$
16,380

 
$
16,765

 
$
15,108

 
$
265,648

 
$
346,342

Corporate

 

 

 

 

 
753,829

 
753,829

Total debt
$
15,584

 
$
16,857

 
$
16,380

 
$
16,765

 
$
15,108

 
$
1,019,477

 
$
1,100,171

(1)
Represents the contractual principal payment due dates for the Company’s long-term debt and does not reflect the reclassification of $310.8 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.

8. INCOME TAXES
The income tax provision consisted of the following:
 
Three Months Ended
September 30,
Nine Months Ended
 September 30,
(In thousands, except effective tax rate)
2017
 
2016
2017
 
2016
Loss before income tax expense
$
(34,221
)
 
$
(15,734
)
$
(48,969
)
 
$
(13,382
)
Income tax expense
2,490

 
2,121

7,440

 
5,040

Effective tax rate
(7.3
)%
 
(13.5
)%
(15.2
)%
 
(37.7
)%
The Company records income tax expense each quarter using its best estimate of the full year’s effective tax rate. The Company regularly reviews its deferred tax assets for realizability, taking into consideration all available evidence, both positive and negative, including cumulative losses, projected future pre-tax and taxable income (losses), the expected timing of the reversals of existing temporary differences and the expected impact of tax planning strategies.

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