|TERRAFORM POWER, INC. filed this Form 10-K on 03/15/2019|
10. LONG-TERM DEBT
Long-term debt consists of the following:
As of December 31,
Interest Rate (%)1
(In thousands, except rates)
Corporate-level long-term debt2:
Senior Notes due 2023
Senior Notes due 2025
Senior Notes due 2028
Non-recourse long-term debt:
Term debt / Senior notes
Financing lease obligations
Financing lease obligations
Total principal due for long-term debt and financing lease obligations
Unamortized discount, net
Deferred financing costs, net
Less current portion of long-term debt and financing lease obligations
Long-term debt and financing lease obligations, less current portion
As of December 31, 2018.
Outstanding corporate-level debt represents debt issued by Terra Operating LLC and guaranteed by Terra LLC and certain subsidiaries of Terra Operating LLC other than non-recourse subsidiaries as defined in the relevant debt agreements (with the exception of certain unencumbered non-recourse subsidiaries).
On February 6, 2018, Terra Operating LLC elected to increase the total borrowing capacity of its Revolver from $450.0 million, available for revolving loans and letters of credit, to $600.0 million. On October 5, 2018, Terra Operating LLC entered into an amendment to reduce the interest rate on the Revolver by 0.75% per annum. The $377.0 million does not include $99.5 million of outstanding project-level letters of credit that have been issued under the Revolver.
On May 11, 2018, the Company entered into an amendment to the Term Loan whereby the interest rate on the Term Loan was reduced by 0.75% per annum.
Includes fixed rate debt and variable rate debt. As of December 31, 2018, 39% of this balance had a fixed interest rate and the remaining 61% of this balance had a variable interest rate. The Company has entered into interest rate swap agreements to fix the interest rates of a majority of the variable rate permanent financing non-recourse debt (see Note 12. Derivatives).
Represents the weighted average interest rate as of December 31, 2018.
Corporate-level Long-term Debt
On November 8, 2017, Terra Operating LLC entered into a 5-year $350.0 million senior secured term loan (the “Term Loan”), which was used to repay outstanding borrowings under the Midco Portfolio Term Loan (as defined and discussed below) and $50.0 million of revolving loans outstanding under the Revolver. The Term Loan originally bore interest at a rate per annum equal to, at Terra Operating LLC's option, either (i) a base rate plus a margin of 1.75% or (ii) a reserve adjusted Eurodollar rate plus a margin of 2.75%, and is secured and guaranteed equally and ratably with the Revolver. The Term Loan provides for voluntary prepayments, in whole or in part, subject to notice periods. There are no prepayment penalties or premiums other than customary breakage costs subsequent to the six-month anniversary of the closing date. Within the first six months following the closing date, a prepayment premium of 1.00% would apply to any principal amounts that were prepaid. On May 11, 2018, Terra Operating LLC entered into an amendment to the Term Loan whereby the interest rate on the Term Loan was reduced by 0.75% per annum. The Company recognized a $1.5 million loss on extinguishment of debt during the