|TERRAFORM POWER, INC. filed this Form 10-K on 03/07/2018|
11. 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
New Senior Notes due 2023
Senior Notes due 2025
Senior Notes due 2028
New Term Loan
Non-recourse long-term debt3:
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 obligations6
Long-term debt and financing lease obligations, less current portion7
As of December 31, 2017.
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).
Non-recourse debt represents debt issued by subsidiaries with no recourse to Terra LLC, Terra Operating LLC or guarantors of the Company's corporate-level debt, other than limited or capped contingent support obligations, which in aggregate are not considered to be material to the Company's business and financial condition.
Includes fixed rate debt and variable rate debt. As of December 31, 2017, 60% of this balance had a fixed interest rate and the remaining 40% 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 13. Derivatives).
Represents the weighted average interest rate as of December 31, 2017.
As of December 31, 2016, the Company reclassified $14.7 million from current portion of long-term debt and financing lease obligations to current liabilities related to assets held for sale in the consolidated balance sheet. There was no similar reclassification as of December 31, 2017 as the sale of the related renewable energy facilities closed in the first half of 2017 (see Note 4. Assets Held for Sale).
As of December 31, 2016, the Company reclassified $353.9 million from long-term debt and financing lease obligations, less current portion to non-current liabilities related to assets held for sale in the consolidated balance sheet. There was no similar reclassification as of December 31, 2017 as the sale of the related renewable energy facilities closed in the first half of 2017 (see Note 4. Assets Held for Sale).
Corporate-level Long-term Debt
On January 28, 2015, Terra Operating LLC repaid the remaining outstanding principal balance on its term loan facility (the “Term Loan”) of $573.5 million. The Company recognized a $12.0 million loss on extinguishment of debt during the year ended December 31, 2015 as a result of this repayment.