Interest Expense, Net
Year Ended December 31,
Regulated Solar and Wind
Total interest expense, net
Interest expense, net decreased by $12.8 million during the year ended December 31, 2018, compared to 2017, primarily driven by the decrease at our Solar and Wind segments. The decrease of $6.9 million at our Solar segment was primarily due to (i) the sale of the U.K. Portfolio, which had interest expense of $8.5 million for the year ended December 31, 2017; and (ii) $2.1 million due to the reduction of outstanding balance from regular repayments. Such decrease was partially offset by $3.3 million interest expense on new project finance debt obtained during 2018. The decrease of $26.7 million in interest expense at our Wind segment was primarily due to: (i) a $29.7 million decrease due to the repayment of the remaining outstanding principal balance of a $300.0 million Midco Portfolio Term Loan (as defined as defined in Note 10. Long-Term Debt to our consolidated financial statements) in the fourth quarter of 2017; and (ii) a $4.2 million decrease due to the reduction of the outstanding debt balances. The decrease at our Wind segment was partially offset by $8.0 million of expense in 2018 related to Saeta’s project-level debt in Portugal and Uruguay since the date of acquisition. The $5.3 million increase in net corporate interest expense was primarily related to increased borrowings under the Revolver (as defined as defined in Note 10. Long-Term Debt to our consolidated financial statements), the proceeds of which were used to fund the acquisition of Saeta. The new Regulated Solar and Wind segment had net interest expense of $15.5 million for the year ended December 31, 2018.
Loss on Extinguishment of Debt, net
We incurred a net loss on extinguishment of debt of $1.5 million for the year ended December 31, 2018, compared to a loss of $81.1 million in the prior year. The loss for the year ended December 31, 2018 represents the deferred financing costs written off and other charges related to the repricing of our Term Loan that took place in May of 2018. The loss for the year ended December 31, 2017 comprised of (i) a $72.3 million loss on the extinguishment of our Old Senior Notes due 2023, including the $50.7 million make-whole premium and the write-off of $21.6 million of unamortized deferred financing costs and debt discounts as of the redemption date; (ii) a $4.5 million loss as a result of the termination of the Old Revolver representing write-off of unamortized deferred financing fees as of the redemption date; and (iii) a $4.3 million loss due to other reductions in borrowing capacity for the Old Revolver during the year ended December 31, 2017 prior to its termination and prepayments and a final repayment of a non-recourse portfolio term loan prior to the date a change of control would have occurred. See Note 10. Long-term Debt to our consolidated financial statements for more details.
Gain on Sale of Renewable Energy Facilities
On May 11, 2017, we announced that Terra Operating LLC completed its previously announced sale of its U.K. Portfolio to Vortex Solar UK Limited, a renewable energy platform managed by the private equity arm of EFG Hermes, an investment bank. We recognized a gain on the sale of $37.1 million within gain on sale of renewable energy facilities in the consolidated statements of operations for the year ended December 31, 2017.
(Gain) Loss on Foreign Currency Exchange, net
We recognized a net gain on foreign currency exchange of $11.0 million for the year ended December 31, 2018, primarily due to a total $34.7 million net realized and unrealized gain on foreign currency derivative contracts that were partially offset by a loss of $24.1 million on the remeasurement of intercompany loans, which are primarily denominated in Euro. We recognized a net gain on foreign currency exchange of $6.1 million for the year ended December 31, 2017 due to a $7.1 million unrealized gain on the remeasurement of intercompany loans (which were primarily denominated in Canadian dollars as of the end of 2017), offset by $1.0 million of realized and unrealized net losses on foreign currency derivatives.