Filed Pursuant to Rule 424(b)(3)
Registration No. 333-202757
Prospectus Supplement No. 6
(to prospectus dated April 9, 2015)
17,506,667 Shares
TerraForm Power, Inc.
Class A Common Stock
This prospectus supplement is being filed to update and supplement the information contained in the prospectus dated April 9, 2015, covering resales by selling stockholders of our Class A common stock, par value $0.01 per share, with the information contained in our Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on August 6, 2015.
This prospectus supplement updates and supplements the information in the prospectus and is not complete without, and may not be delivered or utilized except in combination with, the prospectus, including any amendments or supplements thereto. This prospectus supplement should be read in conjunction with the prospectus and if there is any inconsistency between the information in the prospectus and this prospectus supplement, you should rely on the information in this prospectus supplement.
We are an “emerging growth company” as the term is used in the Jumpstart Our Business Startups Act of 2012 and, as such, have elected to comply with certain reduced public company reporting requirements.
See “Risk Factors” beginning on page 7 of the prospectus to read factors you should consider before buying shares of our Class A common stock.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the accuracy or adequacy of the prospectus or this prospectus supplement. Any representation to the contrary is a criminal offense.
Prospectus Supplement Dated August 6, 2015.
x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware |
|
46-4780940 |
(State or other jurisdiction of incorporation or organization) |
|
(I. R. S. Employer Identification No.) |
7550 Wisconsin Avenue, 9th Floor, Bethesda, Maryland |
|
20814 |
(Address of principal executive offices) |
|
(Zip Code) |
Large accelerated filer |
|
o |
|
Accelerated filer |
|
o |
Non-accelerated filer |
|
x (Do not check if a smaller reporting company) |
|
Smaller reporting company |
|
o |
Page | ||
Item 1. |
||
Item 2. |
||
Item 3. |
||
Item 4. |
||
Item 1. |
||
Item 1A. |
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Item 2. |
||
Item 3. |
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Item 4. |
||
Item 5. |
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Item 6. |
||
|
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||
Operating revenues, net |
$ |
130,046 |
|
$ |
22,378 |
|
$ |
200,561 |
|
$ |
30,770 |
| |||
Operating costs and expenses: |
|||||||||||||||
Cost of operations |
18,409 |
|
1,408 |
|
35,229 |
|
1,890 |
| |||||||
Cost of operations - affiliate |
4,174 |
|
825 |
|
7,817 |
|
1,217 |
| |||||||
General and administrative |
4,521 |
|
358 |
|
13,569 |
|
456 |
| |||||||
General and administrative - affiliate |
17,857 |
|
2,142 |
|
24,775 |
|
3,732 |
| |||||||
Acquisition and related costs |
6,664 |
|
1,235 |
|
20,386 |
|
1,235 |
| |||||||
Acquisition and related costs - affiliate |
604 |
|
— |
|
1,040 |
|
— |
| |||||||
Formation and offering related fees and expenses |
— |
|
2,863 |
|
— |
|
2,863 |
| |||||||
Depreciation, accretion and amortization |
38,136 |
|
4,953 |
|
70,027 |
|
8,387 |
| |||||||
Total operating costs and expenses |
90,365 |
|
13,784 |
|
172,843 |
|
19,780 |
| |||||||
Operating income |
39,681 |
|
8,594 |
|
27,718 |
|
10,990 |
| |||||||
Other expenses: |
|||||||||||||||
Interest expense, net |
35,961 |
|
24,621 |
|
72,816 |
|
32,148 |
| |||||||
(Gain) loss on extinguishment of debt, net |
(11,386 |
) |
1,945 |
|
8,652 |
|
1,945 |
| |||||||
(Gain) loss on foreign currency exchange, net |
(14,439 |
) |
79 |
|
(70 |
) |
674 |
| |||||||
Other, net |
(803 |
) |
— |
|
(323 |
) |
— |
| |||||||
Total other expenses, net |
9,333 |
|
26,645 |
|
81,075 |
|
34,767 |
| |||||||
Income (loss) before income tax expense (benefit) |
30,348 |
|
(18,051 |
) |
(53,357 |
) |
(23,777 |
) | |||||||
Income tax expense (benefit) |
1,214 |
|
(5,318 |
) |
1,169 |
|
(6,875 |
) | |||||||
Net income (loss) |
29,134 |
|
(12,733 |
) |
(54,526 |
) |
(16,902 |
) | |||||||
Less: Predecessor loss prior to initial public offering on July 23, 2014 |
— |
|
(13,204 |
) |
— |
|
(17,012 |
) | |||||||
Less: Net income attributable to redeemable non-controlling interests |
1,796 |
|
— |
|
1,627 |
|
— |
| |||||||
Less: Net income (loss) attributable to non-controlling interests |
9,903 |
|
471 |
|
(45,472 |
) |
110 |
| |||||||
Net income (loss) attributable to Class A common stockholders |
$ |
17,435 |
|
$ |
— |
|
$ |
(10,681 |
) |
$ |
— |
| |||
Weighted average number of shares: |
|||||||||||||||
Class A common stock - Basic and diluted |
57,961 |
|
53,874 |
|
|||||||||||
Earnings (loss) per share: |
|||||||||||||||
Class A common stock - Basic and diluted |
$ |
0.10 |
|
$ |
(0.41 |
) |
3 |
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
2015 |
2014 |
2015 |
2014 | |||||||||||||
Net income (loss) |
$ |
29,134 |
|
$ |
(12,733 |
) |
$ |
(54,526 |
) |
$ |
(16,902 |
) | ||||
Other comprehensive income (loss), net of tax: |
||||||||||||||||
Foreign currency translation adjustments: |
||||||||||||||||
Net unrealized gains arising during the period |
3,852 |
|
573 |
|
577 |
|
573 |
| ||||||||
Hedging activities: |
||||||||||||||||
Net unrealized gains (losses) arising during the period |
428 |
|
— |
|
(1,820 |
) |
— |
| ||||||||
Reclassification of net realized losses into earnings |
350 |
|
— |
|
3,207 |
|
— |
| ||||||||
Other comprehensive income, net of tax |
4,630 |
|
573 |
|
1,964 |
|
573 |
| ||||||||
Total comprehensive income (loss) |
33,764 |
|
(12,160 |
) |
(52,562 |
) |
(16,329 |
) | ||||||||
Less: Predecessor comprehensive loss prior to initial public offering on July 23, 2014 |
— |
|
(12,631 |
) |
— |
|
(16,439 |
) | ||||||||
Less comprehensive income (loss) attributable to non-controlling interests: |
||||||||||||||||
Net income (loss) attributable to non-controlling interests |
9,903 |
|
471 |
|
(45,472 |
) |
110 |
| ||||||||
Foreign currency translation adjustments |
2,177 |
|
— |
|
315 |
|
— |
| ||||||||
Hedging activities |
630 |
|
— |
|
798 |
|
— |
| ||||||||
Comprehensive income (loss) attributable to non-controlling interests |
12,710 |
|
471 |
|
(44,359 |
) |
110 |
| ||||||||
Comprehensive income (loss) attributable to Class A stockholders |
$ |
21,054 |
|
$ |
— |
|
$ |
(8,203 |
) |
$ |
— |
|
4 |
ASSETS |
June 30, 2015 |
December 31, 2014 | |||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
390,632 |
|
$ |
468,554 |
| |
Restricted cash, including consolidated variable interest entities of $25,943 and $39,898 in 2015 and 2014, respectively |
74,416 |
|
70,545 |
| |||
Accounts receivable, including consolidated variable interest entities of $36,228 and $16,921 in 2015 and 2014, respectively |
96,938 |
|
32,036 |
| |||
Prepaid expenses and other current assets |
31,061 |
|
22,637 |
| |||
Total current assets |
593,047 |
|
593,772 |
| |||
Property and equipment, net, including consolidated variable interest entities of $1,660,249 and $1,466,223 in 2015 and 2014, respectively |
3,928,714 |
|
2,637,139 |
| |||
Intangible assets, net, including consolidated variable interest entities of $233,326 and $259,004 in 2015 and 2014, respectively |
515,688 |
|
361,673 |
| |||
Deferred financing costs, net |
52,985 |
|
42,741 |
| |||
Deferred income taxes |
7 |
|
4,606 |
| |||
Other assets |
82,728 |
|
29,419 |
| |||
Total assets |
$ |
5,173,169 |
|
$ |
3,669,350 |
|
5 |
LIABILITIES AND STOCKHOLDERS' EQUITY |
June 30, 2015 |
December 31, 2014 | |||||
Current liabilities: |
|||||||
Current portion of long-term debt and financing lease obligations, including consolidated variable interest entities of $89,331 and $20,907 in 2015 and 2014, respectively |
$ |
322,115 |
|
$ |
97,412 |
| |
Accounts payable, accrued expenses and other current liabilities, including consolidated variable interest entities of $17,956 and $27,284 in 2015 and 2014, respectively |
99,832 |
|
83,437 |
| |||
Deferred revenue, including consolidated variable interest entities of $17,441 and $12,941 in 2015 and 2014, respectively |
13,014 |
|
24,264 |
| |||
Due to SunEdison and affiliates, net |
28,062 |
|
186,435 |
| |||
Total current liabilities |
463,023 |
|
391,548 |
| |||
Other liabilities: |
|||||||
Long-term debt and financing lease obligations, less current portion, including consolidated variable interest entities of $615,658 and $620,853 in 2015 and 2014, respectively |
1,944,795 |
|
1,599,277 |
| |||
Deferred revenue, including consolidated variable interest entities of $63,231 and $51,943 in 2015 and 2014, respectively |
76,814 |
|
52,214 |
| |||
Deferred income taxes |
7,108 |
|
7,877 |
| |||
Asset retirement obligations, including consolidated variable interest entities of $46,621 and $32,181 in 2015 and 2014, respectively |
145,877 |
|
78,175 |
| |||
Other long-term liabilities |
5,098 |
|
— |
| |||
Total liabilities |
2,642,715 |
|
2,129,091 |
| |||
Redeemable non-controlling interests |
38,228 |
|
24,338 |
| |||
Stockholders' equity: |
|||||||
Preferred stock, $0.01 par value, 50,000 shares authorized, none issued and outstanding in 2015 and 2014 |
— |
|
— |
| |||
Class A common stock, $0.01 par value per share, 850,000 shares authorized, 79,904 and 42,218 issued and outstanding in 2015 and 2014, respectively. |
773 |
|
387 |
| |||
Class B common stock, $0.01 par value per share, 140,000 shares authorized, 60,364 and 64,526 issued and outstanding in 2015 and 2014, respectively. |
604 |
|
645 |
| |||
Class B1 common stock, $0.01 par value per share, 260,000 shares authorized, zero and 5,840 issued and outstanding in 2015 and 2014, respectively. |
— |
|
58 |
| |||
Additional paid-in capital |
1,274,450 |
|
497,556 |
| |||
Accumulated deficit |
(36,298 |
) |
(25,617 |
) | |||
Accumulated other comprehensive loss |
(786 |
) |
(1,637 |
) | |||
Total TerraForm Power, Inc. stockholders' equity |
1,238,743 |
|
471,392 |
| |||
Non-controlling interests |
1,253,483 |
|
1,044,529 |
| |||
Total non-controlling interests and stockholders' equity |
2,492,226 |
|
1,515,921 |
| |||
Total liabilities, non-controlling interests and stockholders' equity |
$ |
5,173,169 |
|
$ |
3,669,350 |
|
6 |
Controlling Interest |
Non-controlling Interests |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock |
Class A Common Stock |
Class B Common Stock |
Class B1 Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Loss |
Accumulated Deficit |
Accumulated Other Comprehensive Loss |
Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Total |
Capital |
Total |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2015 |
— |
|
$ |
— |
|
42,218 |
|
$ |
387 |
|
64,526 |
|
$ |
645 |
|
5,840 |
|
$ |
58 |
|
$ |
497,556 |
|
$ |
(25,617 |
) |
$ |
(1,637 |
) |
$ |
471,392 |
|
$ |
1,092,809 |
|
$ |
(44,451 |
) |
$ |
(3,829 |
) |
$ |
1,044,529 |
|
$ |
1,515,921 |
| ||||||||||||||||
Issuance of Class A common stock related to the public offering, net of issuance costs |
— |
|
— |
|
31,912 |
|
318 |
|
(4,162 |
) |
(41 |
) |
— |
|
— |
|
921,333 |
|
— |
|
— |
|
921,610 |
|
— |
|
— |
|
— |
|
— |
|
921,610 |
| |||||||||||||||||||||||||||||
Riverstone exchange |
— |
|
— |
|
5,840 |
|
58 |
|
— |
|
— |
|
(5,840 |
) |
(58 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||||||||||||||||||||||||
Stock-based compensation |
— |
|
— |
|
(66 |
) |
10 |
|
— |
|
— |
|
— |
|
— |
|
7,464 |
|
— |
|
— |
|
7,474 |
|
— |
|
— |
|
— |
|
— |
|
7,474 |
| |||||||||||||||||||||||||||||
Net loss¹ |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(10,681 |
) |
— |
|
(10,681 |
) |
— |
|
(45,472 |
) |
— |
|
(45,472 |
) |
(56,153 |
) | |||||||||||||||||||||||||||||
Dividends |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(33,910 |
) |
— |
|
— |
|
(33,910 |
) |
— |
|
— |
|
— |
|
— |
|
(33,910 |
) | |||||||||||||||||||||||||||||
Consolidation of non-controlling interests in acquired projects |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
104,546 |
|
— |
|
— |
|
104,546 |
|
104,546 |
| |||||||||||||||||||||||||||||
Repurchase of non-controlling interest |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(54,694 |
) |
— |
|
— |
|
(54,694 |
) |
(54,694 |
) | |||||||||||||||||||||||||||||
Contributions from SunEdison |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
45,053 |
|
— |
|
— |
|
45,053 |
|
54,331 |
|
— |
|
— |
|
54,331 |
|
99,384 |
| |||||||||||||||||||||||||||||
Other comprehensive income |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
851 |
|
851 |
|
— |
|
— |
|
1,113 |
|
1,113 |
|
1,964 |
| |||||||||||||||||||||||||||||
Sale of membership interests in projects |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
33,237 |
|
— |
|
— |
|
33,237 |
|
33,237 |
| |||||||||||||||||||||||||||||
Distributions to non-controlling interests |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(47,153 |
) |
— |
|
— |
|
(47,153 |
) |
(47,153 |
) | |||||||||||||||||||||||||||||
Equity reallocation |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(163,046 |
) |
— |
|
— |
|
(163,046 |
) |
163,046 |
|
— |
|
— |
|
163,046 |
|
— |
| |||||||||||||||||||||||||||||
Balance at June 30, 2015 |
— |
|
$ |
— |
|
79,904 |
|
$ |
773 |
|
60,364 |
|
$ |
604 |
|
— |
|
$ |
— |
|
$ |
1,274,450 |
|
$ |
(36,298 |
) |
$ |
(786 |
) |
$ |
1,238,743 |
|
$ |
1,346,122 |
|
$ |
(89,923 |
) |
$ |
(2,716 |
) |
$ |
1,253,483 |
|
$ |
2,492,226 |
|
(1) |
Excludes net loss attributable to redeemable non-controlling interests |
7 |
Six Months Ended June 30, | |||||||
2015 |
2014 | ||||||
Cash flows from operating activities: |
|||||||
Net loss |
$ |
(54,526 |
) |
$ |
(16,902 |
) | |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|||||||
Non-cash incentive revenue |
(1,534 |
) |
(706 |
) | |||
Non-cash interest expense |
931 |
|
299 |
| |||
Stock compensation expense |
7,474 |
|
— |
| |||
Depreciation, accretion and amortization |
70,027 |
|
8,387 |
| |||
Amortization of intangible assets |
5,023 |
|
771 |
| |||
Amortization of deferred financing costs and debt discounts |
11,506 |
|
13,857 |
| |||
Recognition of deferred revenue |
(972 |
) |
(125 |
) | |||
Loss on extinguishment of debt, net |
8,652 |
|
1,945 |
| |||
Unrealized loss on derivatives |
1,814 |
|
— |
| |||
Unrealized loss (gain) on foreign currency exchange |
355 |
|
(1,646 |
) | |||
Deferred taxes |
1,112 |
|
(6,680 |
) | |||
Changes in assets and liabilities: |
|||||||
Accounts receivable |
(54,889 |
) |
(14,174 |
) | |||
Prepaid expenses and other current assets |
8,911 |
|
(9,526 |
) | |||
Accounts payable, accrued interest, and other current liabilities |
11,273 |
|
14,335 |
| |||
Deferred revenue |
14,323 |
|
22,349 |
| |||
Due to SunEdison and affiliates, net |
(196 |
) |
76 |
| |||
Restricted cash from operating activities |
520 |
|
— |
| |||
Other, net |
5,496 |
|
(24 |
) | |||
Net cash provided by operating activities |
35,300 |
|
12,236 |
| |||
Cash flows from investing activities: |
|||||||
Cash paid to third parties for renewable energy facility construction |
(351,252 |
) |
(524,105 |
) | |||
Other investments |
(10,000 |
) |
— |
| |||
Acquisitions of renewable energy facilities from third parties, net of cash acquired |
(1,004,773 |
) |
(191,130 |
) | |||
Due to SunEdison and affiliates, net |
(14,872 |
) |
3,313 |
| |||
Change in restricted cash |
4,343 |
|
9,015 |
| |||
Net cash used in investing activities |
$ |
(1,376,554 |
) |
$ |
(702,907 |
) |
8 |
Six Months Ended June 30, | |||||||
2015 |
2014 | ||||||
Cash flows from financing activities: |
|||||||
Proceeds from issuance of Class A common stock |
$ |
921,610 |
|
$ |
— |
| |
Change in restricted cash for principal debt service |
— |
|
335 |
| |||
Proceeds from Senior Notes due 2023 |
945,962 |
|
— |
| |||
Repayment of term loan |
(573,500 |
) |
— |
| |||
Proceeds from Revolver |
235,000 |
|
— |
| |||
Repayment of Revolver |
(235,000 |
) |
— |
| |||
Borrowings of project-level long-term debt |
276,529 |
|
551,610 |
| |||
Principal payments on project-level long-term debt |
(133,955 |
) |
(42,923 |
) | |||
Due to SunEdison and affiliates, net |
(138,113 |
) |
— |
| |||
Contributions from non-controlling interests |
44,792 |
|
1,930 |
| |||
Distributions to non-controlling interests |
(16,885 |
) |
— |
| |||
Repurchase of non-controlling interest |
(54,694 |
) |
— |
| |||
Distributions to SunEdison and affiliates |
(31,555 |
) |
— |
| |||
Net SunEdison investment |
99,251 |
|
217,680 |
| |||
Payment of dividends |
(33,910 |
) |
— |
| |||
Debt prepayment premium |
(6,412 |
) |
— |
| |||
Payment of deferred financing costs |
(35,392 |
) |
(23,089 |
) | |||
Net cash provided by financing activities |
1,263,728 |
|
705,543 |
| |||
Net (decrease) increase in cash and cash equivalents |
(77,526 |
) |
14,872 |
| |||
Effect of exchange rate changes on cash and cash equivalents |
(396 |
) |
100 |
| |||
Cash and cash equivalents at beginning of period |
468,554 |
|
1,044 |
| |||
Cash and cash equivalents at end of period |
$ |
390,632 |
|
$ |
16,016 |
| |
Supplemental Disclosures: |
|||||||
Cash paid for interest, net of amounts capitalized of $4,752 and $3,392, respectively |
$ |
44,530 |
|
$ |
8,741 |
| |
Schedule of non-cash activities: |
|||||||
Additions of asset retirement obligation (ARO) assets and liabilities |
$ |
36,176 |
|
$ |
3,122 |
| |
ARO assets and obligations from acquisitions |
27,208 |
|
10,183 |
| |||
Long-term debt assumed in connection with acquisitions |
63,293 |
|
109,072 |
|
9 |
(In thousands) Balance Sheet Caption |
December 31, 2014 as Previously Recasted |
Acquired Call Right and Operating Projects |
December 31, 2014 Recast | |||||||||
Cash and cash equivalents |
$ |
468,554 |
|
$ |
— |
|
$ |
468,554 |
| |||
Accounts receivable |
31,986 |
|
50 |
|
32,036 |
| ||||||
Prepaid expenses and other current assets |
22,620 |
|
17 |
|
22,637 |
| ||||||
Property and equipment, net |
2,554,904 |
|
82,235 |
|
2,637,139 |
| ||||||
Deferred financing costs, net |
42,113 |
|
628 |
|
42,741 |
| ||||||
Change in total assets |
$ |
82,930 |
|
| ||||||||
Current portion of long-term debt |
$ |
84,104 |
|
$ |
13,308 |
|
$ |
97,412 |
| |||
Accounts payable, accrued expenses and other current liabilities |
82,605 |
|
832 |
|
83,437 |
| ||||||
Due to SunEdison and affiliates, net |
153,052 |
|
33,383 |
|
186,435 |
| ||||||
Deferred revenue (short-term) |
21,989 |
|
2,275 |
|
24,264 |
| ||||||
Long-term debt and financing lease obligations, less current portion |
1,568,517 |
|
30,760 |
|
1,599,277 |
| ||||||
Asset retirement obligations |
76,111 |
|
2,064 |
|
78,175 |
| ||||||
Deferred revenue (long-term) |
52,081 |
|
133 |
|
52,214 |
| ||||||
Deferred income taxes |
7,702 |
|
175 |
|
7,877 |
| ||||||
Change in total liabilities |
|
$ |
82,930 |
|
|
10 |
(In thousands) Statement of Cash Flows Caption |
As Reported |
Acquired Call Right and Operating Projects |
June 30, 2014 Recast | |||||||||
Cash flows from operating activities: |
||||||||||||
Depreciation, accretion and amortization |
$ |
8,001 |
|
$ |
386 |
|
$ |
8,387 |
| |||
Deferred taxes |
(6,875 |
) |
195 |
|
(6,680 |
) | ||||||
Changes in assets and liabilities: |
|
| ||||||||||
Accounts receivable |
(14,034 |
) |
(140 |
) |
(14,174 |
) | ||||||
Prepaid expenses and other current assets |
(9,526 |
) |
— |
|
(9,526 |
) | ||||||
Accounts payable, accrued interest, and other current liabilities |
13,266 |
|
1,069 |
|
14,335 |
| ||||||
Deferred revenue |
22,349 |
|
— |
|
22,349 |
| ||||||
Cash flows from investing activities: |
||||||||||||
Cash paid to SunEdison and third parties for solar generation facility construction |
(485,756 |
) |
(38,349 |
) |
(524,105 |
) | ||||||
Due to SunEdison and affiliates, net |
— |
|
3,313 |
|
3,313 |
| ||||||
Cash flows from financing activities: |
||||||||||||
Borrowings of project-level long-term debt |
518,737 |
|
32,873 |
|
551,610 |
| ||||||
Principal payments on project-level long-term debt |
(42,923 |
) |
— |
|
(42,923 |
) | ||||||
Payment of deferred financing costs |
(22,421 |
) |
(668 |
) |
(23,089 |
) | ||||||
Net increase in cash and cash equivalents |
14,872 |
|
— |
|
14,872 |
| ||||||
Effect of exchange rate changes on cash and cash equivalents |
100 |
|
— |
|
100 |
| ||||||
Cash and cash equivalents at end of period |
16,016 |
|
— |
|
16,016 |
|
(In thousands) Statement of Operations Caption |
As Reported |
Acquired Call Right and Operating Projects |
June 30, 2014 Recast | |||||||||
Operating revenues, net |
$ |
30,077 |
|
$ |
693 |
|
$ |
30,770 |
| |||
Cost of operations |
1,846 |
|
44 |
|
1,890 |
| ||||||
Cost of operations - affiliate |
1,137 |
|
80 |
|
1,217 |
| ||||||
Depreciation, accretion and amortization |
8,001 |
|
386 |
|
8,387 |
| ||||||
Interest expense, net |
31,253 |
|
895 |
|
32,148 |
| ||||||
Change in net loss |
$ |
(712 |
) |
|
|
11 |
Nameplate Capacity (MW) |
Number of Sites |
As of June 30, 2015 (In thousands) | ||||||||||||||||||||
Facility Size |
Type |
Location |
Initial Cash Paid |
Estimated Cash Due to SunEdison |
Debt Transferred | |||||||||||||||||
Distributed Generation |
Solar |
U.S. |
51.7 |
|
46 |
|
$ |
76,371 |
|
$ |
10,815 |
|
$ |
4,460 |
| |||||||
Utility |
Solar |
U.S. |
47.0 |
|
8 |
|
15,396 |
|
55,150 |
|
60,903 |
| ||||||||||
Utility |
Solar |
U.K. |
214.3 |
|
14 |
|
141,783 |
|
9,924 |
|
218,201 |
| ||||||||||
Total |
313.0 |
|
68 |
|
$ |
233,550 |
|
$ |
75,889 |
|
$ |
283,564 |
|
(In thousands) |
Six Months Ended June 30, 2015 | |||
Operating revenues, net |
$ |
14,324 |
| |
Operating expenses |
7,610 |
| ||
Operating income |
6,714 |
| ||
Interest expense, net |
3,496 |
| ||
Other income |
10,315 |
| ||
Net income |
$ |
13,533 |
|
12 |
13 |
14 |
Six Months Ended June 30, | |||||||
(In thousands) |
2015 |
2014 | |||||
Total operating revenues, net |
$ |
217,276 |
|
$ |
95,076 |
| |
Net Loss |
32,684 |
|
13,298 |
|
2015 Preliminary |
2014 Preliminary |
2014 Final | |||||||||||||||||||||||||
(In thousands) |
First Wind |
Northern Lights |
Other |
Capital Dynamics |
Other |
Mt. Signal |
Other | ||||||||||||||||||||
Accounts receivable |
$ |
8,667 |
|
$ |
1,284 |
|
$ |
2,959 |
|
$ |
2,603 |
|
$ |
4,092 |
|
$ |
11,687 |
|
$ |
5,400 |
| ||||||
Property and equipment |
784,178 |
|
75,218 |
|
80,939 |
|
219,981 |
|
42,001 |
|
649,570 |
|
211,796 |
| |||||||||||||
Intangible assets |
115,200 |
|
25,865 |
|
31,577 |
|
71,453 |
|
16,604 |
|
119,767 |
|
107,676 |
| |||||||||||||
Deferred income taxes |
— |
|
— |
|
— |
|
26,578 |
|
— |
|
— |
|
— |
| |||||||||||||
Restricted cash |
6,630 |
|
— |
|
827 |
|
15 |
|
3,019 |
|
22,165 |
|
11,700 |
| |||||||||||||
Other assets |
68,330 |
|
24 |
|
331 |
|
3,990 |
|
121 |
|
12,621 |
|
4,495 |
| |||||||||||||
Total assets acquired |
983,005 |
|
102,391 |
|
116,633 |
|
324,620 |
|
65,837 |
|
815,810 |
|
|
341,067 |
| ||||||||||||
Accounts payable, accrued expenses and other current liabilities |
10,012 |
|
440 |
|
739 |
|
1,194 |
|
1,781 |
|
22,725 |
|
1,540 |
| |||||||||||||
Long-term debt, including current portion |
47,400 |
|
— |
|
15,893 |
|
— |
|
24,546 |
|
413,464 |
|
111,610 |
| |||||||||||||
Deferred income taxes |
— |
|
— |
|
— |
|
32,476 |
|
— |
|
— |
|
927 |
| |||||||||||||
Asset retirement obligations |
15,418 |
|
818 |
|
5,332 |
|
13,073 |
|
3,269 |
|
4,656 |
|
14,105 |
| |||||||||||||
Total liabilities assumed |
72,830 |
|
1,258 |
|
21,964 |
|
46,743 |
|
29,596 |
|
440,845 |
|
|
128,182 |
| ||||||||||||
Non-controlling interest |
99,739 |
|
— |
|
3,762 |
|
20,496 |
|
2,850 |
|
83,310 |
|
1,400 |
| |||||||||||||
Purchase price, net of cash acquired |
$ |
810,436 |
|
$ |
101,133 |
|
$ |
90,907 |
|
$ |
257,381 |
|
$ |
33,391 |
|
$ |
291,655 |
|
|
$ |
211,485 |
|
15 |
(In thousands) |
June 30, 2015 |
December 31, 2014 | ||||||
Renewable energy facilities |
$ |
3,842,300 |
|
$ |
2,241,728 |
| ||
Less accumulated depreciation - renewable energy facilities |
(111,667 |
) |
(52,981 |
) | ||||
Property and equipment, net |
3,730,633 |
|
2,188,747 |
| ||||
Construction in progress - renewable energy facilities |
198,081 |
|
448,392 |
| ||||
Total property and equipment |
$ |
3,928,714 |
|
$ |
2,637,139 |
|
16 |
(In thousands, except weighted average amortization period) |
Weighted Average Amortization Period |
Gross Carrying Amount |
Accumulated Amortization |
Accumulated Currency Translation Adjustment |
Net Book Value | |||||||||||||
Revenue contracts |
19 years |
$ |
531,115 |
|
$ |
(13,647 |
) |
$ |
(1,780 |
) |
$ |
515,688 |
|
(In thousands, except weighted average amortization period) |
Weighted Average Amortization Period |
Gross Carrying Amount |
Accumulated Amortization |
Accumulated Currency Translation Adjustment |
Net Book Value | |||||||||||||
Revenue contracts |
21 years |
$ |
371,765 |
|
$ |
(6,169 |
) |
$ |
(3,923 |
) |
$ |
361,673 |
|
(In thousands) |
June 30, 2015 |
December 31, 2014 | ||||||
Current assets |
$ |
77,088 |
|
$ |
69,955 |
| ||
Noncurrent assets |
1,923,042 |
|
1,756,276 |
| ||||
Total assets |
$ |
2,000,130 |
|
$ |
1,826,231 |
| ||
Current liabilities |
$ |
116,953 |
|
$ |
64,324 |
| ||
Noncurrent liabilities |
739,135 |
|
707,989 |
| ||||
Total liabilities |
$ |
856,088 |
|
$ |
772,313 |
|
17 |
(In thousands, except rates) Description: |
June 30, 2015 |
December 31, 2014 |
Interest Type |
Current Interest Rate % |
Financing Type | |||||||||
Corporate-level long-term debt: |
||||||||||||||
Term Loan |
$ |
— |
|
$ |
573,500 |
|
Variable |
5.3¹ |
Term debt | |||||
Senior Notes due 2023 |
950,000 |
|
— |
|
Fixed |
5.9 |
Senior notes | |||||||
Project-level long-term debt: |
||||||||||||||
Permanent financing |
833,848 |
|
824,166 |
|
(2) |
5.9³ |
Term debt / Senior notes | |||||||
Construction financing |
346,220 |
|
171,383 |
|
Variable |
3.2³ |
Construction debt | |||||||
Financing lease obligations |
139,437 |
|
126,167 |
|
Imputed |
6.3³ |
Financing lease obligations | |||||||
Total principal due for long-term debt and financing lease obligations |
2,269,505 |
|
1,695,216 |
|
6.0³ |
|||||||||
Less current maturities |
(322,115 |
) |
(97,412 |
) |
||||||||||
Net unamortized (discount) premium |
(2,595 |
) |
1,473 |
|
||||||||||
Long-term debt and financing lease obligations, less current portion |
$ |
1,944,795 |
|
$ |
1,599,277 |
|
(1) |
The Company entered into an interest rate swap agreement fixing the interest rate at 5.33%, which was terminated upon repayment of the Term Loan. |
(2) |
Includes variable rate debt and fixed rate debt. As of June 30, 2015, 67% of this balance had a fixed interest rate and the remaining 33% of this balance had a variable interest rate. The Company has entered into interest rate swap agreements to fix the interest rates of all variable rate permanent project-level debt (see Note 10. Derivatives). |
(3) |
Represents the weighted average effective interest rate as of June 30, 2015. |
18 |
19 |
(In thousands) |
Remainder of 2015¹ |
2016² |
2017 |
2018 |
2019 |
Thereafter |
Total | ||||||||||||||||||||
Maturities of long-term debt as of June 30, 2015 |
$ |
98,159 |
|
$ |
310,066 |
|
$ |
37,864 |
|
$ |
39,374 |
|
$ |
50,229 |
|
$ |
1,733,813 |
|
$ |
2,269,505 |
|
(1) |
The amount of long-term debt due in 2015 includes $65.4 million of construction debt for the U.S. Call Right Projects. |
(2) |
The amount of long-term debt due in 2016 includes GBP 172.6 million (USD $271.3 million) of debt for the Fairwinds & Crundale facilities and the U.K. Call Right Projects. |
20 |
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||||||
(In thousands, except effective tax rate) |
2015 |
2014 |
2015 |
2014 | ||||||||||||
Income/(Loss) before income tax expense (benefit) |
$ |
30,348 |
|
$ |
(18,051 |
) |
$ |
(53,357 |
) |
$ |
(23,777 |
) | ||||
Income tax expense (benefit) |
1,214 |
|
(5,318 |
) |
1,169 |
|
(6,875 |
) | ||||||||
Effective tax rate |
4.0 |
% |
29.5 |
% |
2.2 |
% |
28.9 |
% |
21 |
Fair Value of Derivative Instruments |
||||||||||||||||||||||||||||
Hedging Contracts |
Derivatives Not Designated as Hedges |
|||||||||||||||||||||||||||
(In thousands) |
Interest Rate Swaps |
Interest Rate Swaps |
Foreign Currency Contracts |
Commodity Contracts |
Gross Amounts of Assets/Liabilities Recognized |
Gross Amounts Offset in Consolidated Balance Sheet |
Net Amounts in Consolidated Balance Sheet | |||||||||||||||||||||
As of June 30, 2015 |
||||||||||||||||||||||||||||
Prepaid expenses and other current assets |
$ |
— |
|
$ |
— |
|
$ |
1,607 |
|
$ |
9,300 |
|
$ |
10,907 |
|
$ |
(339 |
) |
$ |
10,568 |
| |||||||
Other assets |
269 |
|
— |
|
899 |
|
33,641 |
|
34,809 |
|
(446 |
) |
34,363 |
| ||||||||||||||
Total assets |
$ |
269 |
|
$ |
— |
|
$ |
2,506 |
|
$ |
42,941 |
|
$ |
45,716 |
|
$ |
(785 |
) |
$ |
44,931 |
| |||||||
Accounts payable and other current liabilities |
$ |
807 |
|
$ |
— |
|
$ |
757 |
|
$ |
— |
|
$ |
1,564 |
|
$ |
(339 |
) |
$ |
1,225 |
| |||||||
Other long-term liabilities |
— |
|
971 |
|
3,953 |
|
— |
|
4,924 |
|
(446 |
) |
4,478 |
| ||||||||||||||
Total liabilities |
$ |
807 |
|
$ |
971 |
|
$ |
4,710 |
|
$ |
— |
|
$ |
6,488 |
|
$ |
(785 |
) |
$ |
5,703 |
| |||||||
As of December 31, 2014 |
||||||||||||||||||||||||||||
Prepaid expenses and other current assets |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
| |||||||
Other assets |
— |
|
— |
|
1,811 |
|
— |
|
1,811 |
|
— |
|
1,811 |
| ||||||||||||||
Total assets |
$ |
— |
|
$ |
— |
|
$ |
1,811 |
|
$ |
— |
|
$ |
1,811 |
|
$ |
— |
|
$ |
1,811 |
| |||||||
Accounts payable and other current liabilities |
$ |
1,925 |
|
$ |
1,279 |
|
$ |
685 |
|
$ |
— |
|
$ |
3,889 |
|
$ |
— |
|
$ |
3,889 |
| |||||||
Other long-term liabilities |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| ||||||||||||||
Total liabilities |
$ |
1,925 |
|
$ |
1,279 |
|
$ |
685 |
|
$ |
— |
|
$ |
3,889 |
|
$ |
— |
|
$ |
3,889 |
|
Notional Amount as of | ||||||||
(In thousands) |
June 30, 2015 |
December 31, 2014 | ||||||
Derivatives designated as hedges: |
||||||||
Interest rate swaps (USD) |
$ |
48,206 |
|
$ |
349,213 |
| ||
Derivatives not designated as hedges: |
||||||||
Interest rate swaps (USD) |
16,538 |
|
16,861 |
| ||||
Foreign currency contracts (GBP) |
112,206 |
|
58,710 |
| ||||
Foreign currency contracts (CAD) |
50,275 |
|
25,415 |
| ||||
Commodity contracts (MWhs) |
2,027 |
|
— |
|
22 |
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||||||||
(In thousands) |
Location of (Gain) Loss Recognized in Income |
2015 |
2014 |
2015 |
2014 | |||||||||||||
Interest rate swaps |
Interest expense, net |
$ |
(277 |
) |
$ |
153 |
|
$ |
(41 |
) |
$ |
723 |
| |||||
Foreign currency contracts |
Loss on foreign currency exchange, net |
2,763 |
|
902 |
|
2,860 |
|
902 |
| |||||||||
Commodity contracts |
Operating revenues, net |
(6,021 |
) |
— |
|
(1,762 |
) |
— |
|
Three Months Ended June 30, | ||||||||||||||||||||||||||
Gain Recognized in Other Comprehensive Income (Effective Portion) |
Location of Loss Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) |
Amount of Loss Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) |
Amount of Loss Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | |||||||||||||||||||||||
(In thousands) |
2015 |
2014 |
2015 |
2014 |
2015 |
2014 | ||||||||||||||||||||
Interest rate swaps |
$ |
(428 |
) |
$ |
— |
|
Interest expense, net |
$ |
350 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Six Months Ended June 30, | ||||||||||||||||||||||||||
Loss Recognized in Other Comprehensive Income (Effective Portion) |
Location of Loss Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) |
Amount of Loss Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) |
Amount of Loss Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | |||||||||||||||||||||||
(In thousands) |
2015 |
2014 |
2015 |
2014 |
2015 |
2014 | ||||||||||||||||||||
Interest rate swaps |
$ |
1,820 |
|
$ |
— |
|
Interest expense, net |
$ |
3,207 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
23 |
As of June 30, 2015 |
As of December 31, 2014 | |||||||||||||||
(In thousands) |
Carrying Amount |
Fair Value |
Carrying Amount |
Fair Value | ||||||||||||
Long-term debt, including current portion |
$ |
2,266,910 |
|
$ |
2,311,441 |
|
$ |
1,696,689 |
|
$ |
1,704,706 |
|
(In thousands) |
As of June 30, 2015 |
As of December 31, 2014 | |||||||||||||||||||||||||||||
Assets |
Level 1 |
Level 2 |
Level 3 |
Total |
Level 1 |
Level 2 |
Level 3 |
Total | |||||||||||||||||||||||
Foreign currency contracts |
$ |
— |
|
$ |
1,990 |
|
$ |
— |
|
$ |
1,990 |
|
$ |
— |
|
$ |
1,811 |
|
$ |
— |
|
$ |
1,811 |
| |||||||
Commodity contracts |
— |
|
42,941 |
|
— |
|
42,941 |
|
— |
|
— |
|
— |
|
— |
| |||||||||||||||
Total derivative assets |
$ |
— |
|
$ |
44,931 |
|
$ |
— |
|
$ |
44,931 |
|
$ |
— |
|
$ |
1,811 |
|
$ |
— |
|
$ |
1,811 |
| |||||||
Liabilities |
|||||||||||||||||||||||||||||||
Interest rate swaps |
$ |
— |
|
$ |
1,509 |
|
$ |
— |
|
$ |
1,509 |
|
$ |
— |
|
$ |
3,204 |
|
$ |
— |
|
$ |
3,204 |
| |||||||
Foreign currency contracts |
— |
|
4,194 |
|
— |
|
4,194 |
|
— |
|
685 |
|
— |
|
685 |
| |||||||||||||||
Total derivative liabilities |
$ |
— |
|
$ |
5,703 |
|
$ |
— |
|
$ |
5,703 |
|
$ |
— |
|
$ |
3,889 |
|
$ |
— |
|
$ |
3,889 |
|
24 |
25 |
Shares: |
Number Outstanding |
Shareholder(s) | |||
Class A common stock |
79,904,190 |
|
* | ||
Class B common stock |
60,364,154 |
|
SunEdison | ||
Class B1 common stock |
— |
|
Riverstone | ||
Total Shares |
140,268,344 |
|
Number of RSAs Outstanding |
Weighted Average Grant Date Fair Value Per Share | ||||||
Balance at January 1, 2015 |
4,876,567 |
|
$ |
1.12 |
| ||
Granted |
— |
|
— |
| |||
Forfeited |
(132,588 |
) |
0.68 |
| |||
Modified |
66,294 |
|
35.05 |
| |||
Balance at June 30, 2015 |
4,810,273 |
|
$ |
1.60 |
|
26 |
Number of RSUs Outstanding |
Weighted Average Grant Date Fair Value Per Share | ||||||
Balance at January 1, 2015 |
825,943 |
|
$ |
27.37 |
| ||
Granted |
1,180,000 |
|
34.37 |
| |||
Balance at June 30, 2015 |
2,005,943 |
|
$ |
31.49 |
|
Number of Options Outstanding |
Weighted Average Exercise Price Per Share |
Aggregate Intrinsic Value (in thousands) | |||||||||
Balance at January 1, 2015 |
150,000 |
|
$ |
29.31 |
|
||||||
Granted |
— |
|
— |
|
|||||||
Balance at June 30, 2015 |
150,000 |
|
$ |
29.31 |
|
$ |
1,301 |
| |||
Options exercisable at June 30, 2015 |
37,500 |
|
$ |
29.31 |
|
$ |
325 |
|
27 |
(In thousands, except per share amounts) |
Three Months Ended June 30, 2015 |
Six Months Ended June 30, 2015 | ||||||
Basic and diluted earnings (loss) per share¹: |
||||||||
Net income (loss) attributable to Class A common stockholders |
$ |
17,435 |
|
$ |
(10,681 |
) | ||
Less: earnings (loss) pertaining to acquired Call Right and operating projects |
(10,635 |
) |
(10,635 |
) | ||||
Less: dividends paid on Class A shares and participating RSAs |
(20,082 |
) |
(20,082 |
) | ||||
Undistributed earnings (loss) attributable to Class A shares |
$ |
(13,282 |
) |
$ |
(41,398 |
) | ||
Weighted-average basic and diluted Class A shares outstanding |
57,961 |
|
53,874 |
| ||||
Distributed earnings per share |
$ |
0.33 |
|
$ |
0.35 |
| ||
Undistributed loss per share |
(0.23 |
) |
(0.76 |
) | ||||
Basic and diluted earnings (loss) per share |
$ |
0.10 |
|
$ |
(0.41 |
) |
(1) |
The computations for diluted earnings (loss) per share for the three and six months ended June 30, 2015 excludes approximately 60,364,154 shares of Class B common stock, 2,445,464 of unvested RSAs, 2,005,943 RSUs and 150,000 options to purchase the Company's shares because the effect would have been anti-dilutive. |
(In thousands) |
June 30, 2015 |
December 31, 2014 | ||||||
Non-controlling interests in Terra LLC¹: |
||||||||
SunEdison |
$ |
962,791 |
|
$ |
722,342 |
| ||
Riverstone |
— |
|
65,376 |
| ||||
Total non-controlling interests in Terra LLC |
962,791 |
|
787,718 |
| ||||
Total non-controlling interests in renewable energy facilities |
290,692 |
|
256,811 |
| ||||
Total non-controlling interests |
$ |
1,253,483 |
|
$ |
1,044,529 |
|
(1) |
Reflects an equity reallocation of $163.0 million due to a quarterly adjustment of capital balances to reflect respective ownership percentages as of the balance sheet date. |
28 |
Redeemable Non-controlling Interests | ||||||||||||
(In thousands) |
Capital |
Accumulated Deficit |
Total | |||||||||
Balance at December 31, 2014 |
$ |
24,338 |
|
$ |
— |
|
$ |
24,338 |
| |||
Consolidation of redeemable non-controlling interests in acquired projects |
1,708 |
|
— |
|
1,708 |
| ||||||
Sale of membership interests in projects |
11,842 |
|
— |
|
11,842 |
| ||||||
Distributions |
(1,287 |
) |
— |
|
(1,287 |
) | ||||||
Net loss |
— |
|
1,627 |
|
1,627 |
| ||||||
Balance at June 30, 2015 |
$ |
36,601 |
|
$ |
1,627 |
|
$ |
38,228 |
|
29 |
30 |
• |
Terra LLC has made cash distributions to the holders of its Class A units, Class B1 units and, subject to the Distribution Forbearance Provisions, Class B units in an amount equal to the Minimum Quarterly Distribution; and |
• |
Terra LLC has distributed cash to holders of Class A units and holders of Class B1 units in an amount necessary to eliminate any arrearages in payment of the Minimum Quarterly Distribution; |
• |
first, to all holders of Class A units, Class B1 units and, subject to the Distribution Forbearance Provisions, Class B units, pro rata, until each holder receives a total of $0.3386 per unit for that quarter (the “First Target Distribution”) (150.0% of the Minimum Quarterly Distribution); |
• |
second, 85.0% to all holders of Class A units, Class B1 units and, subject to the Distribution Forbearance Provisions, Class B units, pro rata, and 15.0% to the holders of the IDRs, until each holder of Class A units, Class B1 units and, subject to the Distribution Forbearance Provisions, Class B units receives a total of $0.3950 per unit for that quarter (the “Second Target Distribution”) (175.0% of the Minimum Quarterly Distribution); |
31 |
• |
third, 75.0% to all holders of Class A units, Class B1 units and, subject to the Distribution Forbearance Provisions, Class B units, pro rata, and 25.0% to the holders of the IDRs, until each holder of Class A units, Class B1 units and, subject to the Distribution Forbearance Provisions, Class B units receives a total of $0.4514 per unit for that quarter (the “Third Target Distribution”) (200.0% of the Minimum Quarterly Distribution); and |
• |
thereafter, 50.0% to all holders of Class A units, Class B1 units and, subject to the Distribution Forbearance Provisions, Class B units, pro rata, and 50.0% to the holders of the IDRs. |
32 |
Three Months |
Three Months | |||||||||||||||||||||||||||||||
Ended June 30, 2015 |
Ended June 30, 2014 | |||||||||||||||||||||||||||||||
(In thousands) |
Solar |
Wind |
Corporate |
Total |
Solar |
Wind |
Corporate |
Total | ||||||||||||||||||||||||
Operating revenues, net |
$ |
95,468 |
|
$ |
34,578 |
|
$ |
— |
|
$ |
130,046 |
|
$ |
22,378 |
|
$ |
— |
|
$ |
— |
|
$ |
22,378 |
| ||||||||
Depreciation, accretion and amortization |
29,537 |
|
8,599 |
|
— |
|
38,136 |
|
4,953 |
|
— |
|
— |
|
4,953 |
| ||||||||||||||||
Other operating costs and expenses |
15,821 |
|
5,979 |
|
30,429 |
|
52,229 |
|
2,591 |
|
— |
|
6,240 |
|
8,831 |
| ||||||||||||||||
Interest expense, net |
19,047 |
|
94 |
|
16,820 |
|
35,961 |
|
7,430 |
|
— |
|
17,191 |
|
24,621 |
| ||||||||||||||||
Other non-operating (income) expenses |
(12,718 |
) |
(1,318 |
) |
(12,592 |
) |
(26,628 |
) |
3,985 |
|
— |
|
(1,961 |
) |
2,024 |
| ||||||||||||||||
Income tax expense (benefit)¹ |
— |
|
— |
|
1,214 |
|
1,214 |
|
— |
|
— |
|
(5,318 |
) |
(5,318 |
) | ||||||||||||||||
Net income (loss) |
$ |
43,781 |
|
$ |
21,224 |
|
$ |
(35,871 |
) |
$ |
29,134 |
|
$ |
3,419 |
|
$ |
— |
|
$ |
(16,152 |
) |
$ |
(12,733 |
) |
Six Months |
Six Months | |||||||||||||||||||||||||||||||
Ended June 30, 2015 |
Ended June 30, 2014 | |||||||||||||||||||||||||||||||
(In thousands) |
Solar |
Wind |
Corporate |
Total |
Solar |
Wind |
Corporate |
Total | ||||||||||||||||||||||||
Operating revenues, net |
$ |
143,838 |
|
$ |
56,723 |
|
$ |
— |
|
$ |
200,561 |
|
$ |
30,770 |
|
$ |
— |
|
$ |
— |
|
$ |
30,770 |
| ||||||||
Depreciation, accretion and amortization |
55,292 |
|
14,735 |
|
— |
|
70,027 |
|
8,387 |
|
— |
|
— |
|
8,387 |
| ||||||||||||||||
Other operating costs and expenses |
30,828 |
|
18,992 |
|
52,996 |
|
102,816 |
|
3,563 |
|
— |
|
7,830 |
|
11,393 |
| ||||||||||||||||
Interest expense, net |
35,385 |
|
851 |
|
36,580 |
|
72,816 |
|
14,430 |
|
— |
|
17,718 |
|
32,148 |
| ||||||||||||||||
Other non-operating (income) expenses |
(12,292 |
) |
7,117 |
|
13,434 |
|
8,259 |
|
4,580 |
|
— |
|
(1,961 |
) |
2,619 |
| ||||||||||||||||
Income tax expense (benefit)¹ |
— |
|
— |
|
1,169 |
|
1,169 |
|
— |
|
— |
|
(6,875 |
) |
(6,875 |
) | ||||||||||||||||
Net income (loss) |
$ |
34,625 |
|
$ |
15,028 |
|
$ |
(104,179 |
) |
$ |
(54,526 |
) |
$ |
(190 |
) |
$ |
— |
|
$ |
(16,712 |
) |
$ |
(16,902 |
) | ||||||||
Balance Sheet |
||||||||||||||||||||||||||||||||
Total assets² |
$ |
3,924,640 |
|
$ |
954,988 |
|
$ |
293,541 |
|
$ |
5,173,169 |
|
$ |
3,155,180 |
|
$ |
— |
|
$ |
514,170 |
|
$ |
3,669,350 |
|
(1) |
Income tax benefit is not allocated to the Company's Solar and Wind segments. |
(2) |
Represents total assets as of June 30, 2015 and December 31, 2014. Corporate assets include cash and cash equivalents; other current assets; corporate-level debt and related deferred financing costs, net and other assets. |
33 |
(In thousands) |
Foreign Currency Translation Adjustments |
Hedging Activities |
Accumulated Other Comprehensive Income (Loss) | |||||||||
Balance, December 31, 2014 |
$ |
(1,149 |
) |
$ |
(488 |
) |
$ |
(1,637 |
) | |||
Net unrealized gains (losses) arising during the period |
577 |
|
(1,820 |
) |
(1,243 |
) | ||||||
Reclassification of net realized losses into earnings: |
||||||||||||
Interest expense, net |
— |
|
3,207 |
|
3,207 |
| ||||||
Other comprehensive income |
$ |
577 |
|
$ |
1,387 |
|
$ |
1,964 |
| |||
Accumulated other comprehensive (loss) income |
(572 |
) |
899 |
|
327 |
| ||||||
Other comprehensive income attributable to non-controlling interests |
315 |
|
798 |
|
1,113 |
| ||||||
Balance, June 30, 2015 |
$ |
(887 |
) |
$ |
101 |
|
$ |
(786 |
) |
Three Months Ended | ||||||||||||||||||||||||
June 30, 2015 |
June 30, 2014 | |||||||||||||||||||||||
(In thousands) |
Before Tax |
Tax Effect |
Net of Tax |
Before Tax |
Tax Effect |
Net of Tax | ||||||||||||||||||
Foreign currency translation adjustments: |
||||||||||||||||||||||||
Net unrealized gains arising during the period |
$ |
3,852 |
|
$ |
— |
|
$ |
3,852 |
|
$ |
573 |
|
$ |
— |
|
$ |
573 |
| ||||||
Hedging activities: |
||||||||||||||||||||||||
Net unrealized gains arising during the period |
428 |
|
— |
|
428 |
|
— |
|
— |
|
— |
| ||||||||||||
Reclassification of net realized losses into earnings |
350 |
|
— |
|
350 |
|
— |
|
— |
|
— |
| ||||||||||||
Net change |
778 |
|
— |
|
778 |
|
— |
|
— |
|
— |
| ||||||||||||
Other comprehensive income |
$ |
4,630 |
|
$ |
— |
|
$ |
4,630 |
|
$ |
573 |
|
$ |
— |
|
$ |
573 |
| ||||||
Less: other comprehensive income attributable to non-controlling interests, net of tax |
2,807 |
|
— |
| ||||||||||||||||||||
Other comprehensive income attributable to Class A stockholders |
$ |
1,823 |
|
$ |
573 |
|
34 |
Six Months Ended | ||||||||||||||||||||||||
June 30, 2015 |
June 30, 2014 | |||||||||||||||||||||||
(In thousands) |
Before Tax |
Tax Effect |
Net of Tax |
Before Tax |
Tax Effect |
Net of Tax | ||||||||||||||||||
Foreign currency translation adjustments: |
||||||||||||||||||||||||
Net unrealized gains arising during the period |
$ |
577 |
|
$ |
— |
|
$ |
577 |
|
$ |
573 |
|
$ |
— |
|
$ |
573 |
| ||||||
Hedging activities: |
||||||||||||||||||||||||
Net unrealized losses arising during the period |
(1,820 |
) |
— |
|
(1,820 |
) |
— |
|
— |
|
— |
| ||||||||||||
Reclassification of net realized losses into earnings |
3,207 |
|
— |
|
3,207 |
|
— |
|
— |
|
— |
| ||||||||||||
Net change |
1,387 |
|
— |
|
1,387 |
|
— |
|
— |
|
— |
| ||||||||||||
Other comprehensive income |
$ |
1,964 |
|
$ |
— |
|
$ |
1,964 |
|
$ |
573 |
|
$ |
— |
|
$ |
573 |
| ||||||
Less: other comprehensive income attributable to non-controlling interests, net of tax |
1,113 |
|
— |
| ||||||||||||||||||||
Other comprehensive income attributable to Class A stockholders |
$ |
851 |
|
$ |
573 |
|
35 |
36 |
37 |
Nameplate Capacity (MW) |
Number of Sites |
As of June 30, 2015 (In thousands) | ||||||||||||||||||||
Facility Size |
Type |
Location |
Initial Cash Paid |
Estimated Cash Due to SunEdison |
Debt Transferred | |||||||||||||||||
Distributed Generation |
Solar |
U.S. |
51.7 |
|
46 |
|
$ |
76,371 |
|
$ |
10,815 |
|
$ |
4,460 |
| |||||||
Utility |
Solar |
U.S. |
47.0 |
|
8 |
|
15,396 |
|
55,150 |
|
60,903 |
| ||||||||||
Utility |
Solar |
U.K. |
214.3 |
|
14 |
|
141,783 |
|
9,924 |
|
218,201 |
| ||||||||||
Total |
313.0 |
|
68 |
|
$ |
233,550 |
|
$ |
75,889 |
|
$ |
283,564 |
|
38 |
Weighted Average Remaining Duration of PPA (Years)² | |||||||||
Nameplate Capacity (MW)¹ |
Number of Sites |
||||||||
Description |
|||||||||
Portfolio as of December 31, 2014 |
986.2 |
|
396 |
|
19 |
| |||
Acquisition of First Wind operating facilities |
521.1 |
|
16 |
|
10 |
| |||
Acquisition of U.K. Utility facilities (Call Rights) |
214.3 |
|
14 |
|
15 |
| |||
Acquisition of U.S. Utility facilities (Call Rights) |
47.0 |
|
8 |
|
22 |
| |||
Acquisition TEG solar operating facilities |
33.8 |
|
56 |
|
15 |
| |||
Additions to DG 2015 Portfolio 1 (Call Rights) |
25.6 |
|
29 |
|
21 |
| |||
Acquisition of Northern Lights operating facilities |
25.7 |
|
2 |
|
18 |
| |||
Additions to DG 2014 Portfolio 1 (Call Rights) |
16.0 |
|
16 |
|
18 |
| |||
Acquisition of Duke Energy operating facility |
10.0 |
|
1 |
|
15 |
| |||
Acquisition of MPI operating solar facilities |
3.8 |
|
10 |
|
19 |
| |||
Changes to existing facilities³ |
0.1 |
|
N/A |
|
N/A |
| |||
Total Portfolio as of June 30, 2015 |
1,883.5 |
|
548 |
|
16 |
|
(1) |
Nameplate capacity for renewable energy facilities represents the maximum generating capacity at standard test conditions of a facility (in direct current, "dc") multiplied by our percentage ownership of that facility (disregarding any equity interests held by any non-controlling member or lessor under any sale-leaseback financing or any non-controlling interests in a partnership). Nameplate capacity for wind power plants represents the manufacturer’s maximum nameplate generating capacity of each turbine (in alternating current, "ac") multiplied by the number of turbines at a facility multiplied by our anticipated percentage ownership of that facility (disregarding any equity interests held by any tax equity investor or lessor under any sale-leaseback financing or any non-controlling interests in a partnership). Generating capacity may vary based on a variety of factors discussed elsewhere in this report. |
(2) |
Calculated as of June 30, 2015. |
(3) |
Represents modifications to the nameplate capacity upon facilities reaching commercial operation. |
39 |
Facility Type / Location |
Nameplate Capacity (MW)¹ |
Number of Sites |
Weighted Average Remaining Duration of PPA (Years)² | ||||||
Distributed Generation: |
|||||||||
Solar: |
|||||||||
U.S. |
365.8 |
|
471 |
|
18 |
| |||
Canada |
7.6 |
|
17 |
|
18 |
| |||
Total Distributed Generation |
373.4 |
|
488 |
|
18 |
| |||
Utility-scale: |
|||||||||
Solar: |
|||||||||
U.S. |
472.8 |
|
18 |
|
22 |
| |||
Canada |
59.6 |
|
4 |
|
19 |
| |||
U.K. |
376.1 |
|
25 |
|
14 |
| |||
Chile |
101.6 |
|
1 |
|
19 |
| |||
Wind: |
|||||||||
U.S. |
500.0 |
|
12 |
|
10 |
| |||
Total Utility-scale |
1,510.1 |
|
60 |
|
16 |
| |||
Total Renewable Energy Facilities |
1,883.5 |
|
548 |
|
16 |
|
(1) |
Nameplate capacity for solar generation facilities represents the maximum generating capacity at standard test conditions of a facility (in dc) multiplied by our percentage ownership of that facility (disregarding any equity interests held by any tax equity investor or lessor under sale leaseback financing or of any non-controlling interests in a partnership). Nameplate capacity for wind power plants represents the manufacturer’s maximum nameplate generating capacity of each turbine (in ac) multiplied by the number of turbines at a facility multiplied by our anticipated percentage ownership of that facility (disregarding any equity interests held by any tax equity investor or lessor under any sale-leaseback financing or of any non-controlling interests in a partnership). Generating capacity may vary based on a variety of factors discussed elsewhere in this report. |
(2) |
Calculated as of June 30, 2015. |
40 |
Facility Type / Location |
Nameplate Capacity (MW)¹ |
Number of Sites | ||||
Distributed Generation: |
||||||
Solar: |
||||||
U.S. |
290.8 |
|
266 |
| ||
Canada |
11.4 |
|
24 |
| ||
Total Distributed Generation |
302.2 |
|
290 |
| ||
Utility-scale: |
||||||
Solar: |
||||||
U.S. |
1,967.4 |
|
25 |
| ||
Japan |
125.2 |
|
9 |
| ||
U.K. |
72.2 |
|
5 |
| ||
Chile |
41.7 |
|
1 |
| ||
Canada |
2.8 |
|
17 |
| ||
Wind: |
||||||
U.S. |
1,204.0 |
|
8 |
| ||
Total Utility-scale |
3,413.3 |
|
65 |
| ||
Total Renewable Energy Facilities |
3,715.6 |
|
355 |
|
(1) |
Nameplate capacity for solar generation facilities represents the maximum generating capacity at standard test conditions of a facility (in dc) multiplied by our percentage ownership of that facility (disregarding any equity interests held by any tax equity investor or lessor under sale leaseback financing or of any non-controlling interests in a partnership). Nameplate capacity for wind power plants represents the manufacturer’s maximum nameplate generating capacity of each turbine (in ac) multiplied by the number of turbines at a facility multiplied by our anticipated percentage ownership of that facility (disregarding any equity interests held by any tax equity investor or lessor under any sale-leaseback financing or of any non-controlling interests in a partnership). Generating capacity may vary based on a variety of factors discussed elsewhere in this report. |
41 |
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||||||
(In thousands) |
2015 |
|
2014 |
2015 |
2014 | |||||||||||
Net income (loss) |
$ |
29,134 |
|
$ |
(12,733 |
) |
$ |
(54,526 |
) |
$ |
(16,902 |
) | ||||
Interest expense, net (a) |
35,961 |
|
24,621 |
|
72,816 |
|
32,148 |
| ||||||||
Income tax expense (benefit) |
1,214 |
|
(5,318 |
) |
1,169 |
|
(6,875 |
) | ||||||||
Depreciation, accretion and amortization (b) |
43,495 |
|
5,724 |
|
75,050 |
|
9,158 |
| ||||||||
General and administrative - affiliate (c) |
16,557 |
|
2,142 |
|
23,251 |
|
3,732 |
| ||||||||
Stock-based compensation |
2,330 |
|
— |
|
7,474 |
|
— |
| ||||||||
Acquisition and related costs, including affiliate (d) |
7,268 |
|
1,235 |
|
21,426 |
|
1,235 |
| ||||||||
Formation and offering related fees and expenses (e) |
— |
|
2,863 |
|
— |
|
2,863 |
| ||||||||
Unrealized (gain) loss on derivatives (f) |
(2,488 |
) |
— |
|
1,814 |
|
— |
| ||||||||
(Gain) loss on extinguishment of debt, net (g) |
(11,386 |
) |
1,945 |
|
8,652 |
|
1,945 |
| ||||||||
Non-recurring facility-level non-controlling interest member transaction fees (h) |
— |
|
— |
|
2,753 |
|
— |
| ||||||||
(Gain) loss on foreign currency exchange, net (i) |
(14,439 |
) |
79 |
|
(70 |
) |
674 |
| ||||||||
Adjusted EBITDA |
$ |
107,646 |
|
|
$ |
20,558 |
|
$ |
159,809 |
|
$ |
27,978 |
|
(a) |
In connection with the amended Interest Payment Agreement between SunEdison and the Company, SunEdison will pay a portion of each scheduled interest payment on the Senior Notes due 2023, beginning with the first scheduled interest payment on August 1, 2015 and continuing through the scheduled interest payment on August 1, 2017, up to a maximum aggregate amount of $48.0 million, taking into account amounts paid under the original Interest Payment Agreement since the completion of our IPO. The Company did not receive an equity contribution during the three months ended June 30, 2015. During the six months ended June 30, 2015, the Company received an equity contribution of $4.0 million from SunEdison pursuant to the original Interest Payment Agreement. |
(b) |
Includes $5.4 million and $5.0 million of net amortization of intangible assets related to above market rate and below market rate energy revenue contracts included within operating revenues for the three and six months ended June 30, 2015, respectively, and $0.8 million for both of the prior year comparative periods. |
(c) |
Represents the non-cash allocation of SunEdison's corporate overhead. In conjunction with the closing of the IPO on July 23, 2014, we entered into the Management Services Agreement ("MSA") with SunEdison, pursuant to which SunEdison provides or arranges for other service providers to provide management and administrative services to us. Cash consideration paid to SunEdison for these services for the three and six months ended June 30, 2015 totaled $1.3 million and $2.0 million, respectively. The cash fees payable to SunEdison will be capped at $4.0 million in 2015, $7.0 million in 2016, and $9.0 million in 2017. The amount of general and administrative expenses in excess of the fees paid to SunEdison in each year will be treated as an addback in the reconciliation of net income (loss) to Adjusted EBITDA. |
(d) |
Represents transaction related costs, including affiliate acquisition costs, associated with the acquisitions completed during the three and six months ended June 30, 2015 and 2014. There were no affiliate acquisition costs during the three and six months ended June 30, 2014. |
(e) |
Represents non-recurring professional fees for legal, tax and accounting services incurred in connection with the IPO. |
(f) |
Represents the change in the fair value of commodity contracts not designated as hedges. |
42 |
(g) |
We recognized a net gain on extinguishment of debt of $11.4 million for the three months ended June 30, 2015 due to the termination of financing lease obligations upon SunEdison acquiring the lessor interest in the Duke Energy operating facility and concurrently transferring the portfolio to the Company. We recognized a net loss on extinguishment of debt of $8.7 million for the six months ended June 30, 2015 due primarily to the termination of the Term Loan and its related interest rate swap, the exchange of the previous revolver to the Revolver and prepayment of premium paid in conjunction with the payoff of First Wind indebtedness at the acquisition date, partially offset by the gain due to the termination of financing lease obligations upon SunEdison acquiring the lessor interest in the Duke Energy operating facility and concurrently transferring the portfolio to the Company. Net loss on extinguishment of debt was $1.9 million for both the three and six months ended June 30, 2014, due primarily to the termination of capital lease obligations upon acquiring the lessor interest in the Alamosa project solar generation facility. |
(h) |
Represents non-recurring plant-level professional fees attributable to tax equity transactions entered into during the three and six months ended June 30, 2015. |
(i) |
We incurred a net gain on foreign currency exchange of $14.4 million and $0.1 million for the three and six months ended June 30, 2015, respectively, due primarily to an unrealized gain on the remeasurement of intercompany loans which are denominated in British pounds. Net loss on foreign currency exchange was $0.1 million and $0.7 million for the three and six months ended June 30, 2014, respectively, due primarily to unfavorable changes in foreign currency exchange rates. |
43 |
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||||||
(In thousands) |
2015 |
2014 |
2015 |
|
2014 | |||||||||||
Adjustments to reconcile net cash provided by operating activities to cash available for distribution: |
||||||||||||||||
Net cash provided by operating activities |
$ |
45,909 |
|
$ |
32,847 |
|
$ |
35,300 |
|
$ |
12,236 |
| ||||
Changes in assets and liabilities |
4,018 |
|
(35,981 |
) |
14,562 |
|
(13,036 |
) | ||||||||
Deposits into/withdrawals from restricted cash accounts |
7,618 |
|
4,157 |
|
10,303 |
|
4,725 |
| ||||||||
Cash distributions to non-controlling interests |
(2,970 |
) |
— |
|
(12,319 |
) |
— |
| ||||||||
Scheduled project-level and other debt service and repayments |
(10,653 |
) |
(3,864 |
) |
(11,899 |
) |
(4,402 |
) | ||||||||
Contributions received pursuant to agreements with SunEdison |
3,313 |
|
5,638 |
|
9,466 |
|
5,638 |
| ||||||||
Non-expansionary capital expenditures |
(5,296 |
) |
— |
|
(5,296 |
) |
— |
| ||||||||
Other: |
||||||||||||||||
Acquisition and related costs, including affiliates |
7,268 |
|
1,235 |
|
21,426 |
|
1,235 |
| ||||||||
Formation and offering related fees and expenses, including affiliates |
— |
|
2,863 |
|
— |
|
2,863 |
| ||||||||
Change in accrued interest (a) |
(7,818 |
) |
— |
|
900 |
|
7,082 |
| ||||||||
General and administrative - affiliate (b) |
16,557 |
|
2,142 |
|
23,251 |
|
3,732 |
| ||||||||
Non-recurring facility-level non-controlling interest member transaction fees |
— |
|
— |
|
2,753 |
|
— |
| ||||||||
Economic ownership adjustment (c) |
6,379 |
|
— |
|
13,590 |
|
— |
| ||||||||
Other |
608 |
|
(1,174 |
) |
2,096 |
|
(1,558 |
) | ||||||||
Estimated cash available for distribution |
$ |
64,933 |
|
$ |
7,863 |
|
$ |
104,133 |
|
$ |
18,515 |
|
(a) |
Includes $12.0 million of corporate interest expense for the three months ended June 30, 2015 and paid on August 3, 2015 to align with project economics. |
(b) |
Represents the non-cash allocation of SunEdison's corporate overhead. In conjunction with the closing of the IPO on July 23, 2014, we entered into the MSA with SunEdison, pursuant to which SunEdison provides or arranges for other service providers to provide management and administrative services to us. Cash consideration paid to SunEdison for these services for the three and six months ended June 30, 2015 totaled $1.3 million and $2.0 million, respectively. The cash fees payable to SunEdison will be capped at $4.0 million in 2015, $7.0 million in 2016, and $9.0 million in 2017. The amount of general and administrative expenses in excess of the fees paid to SunEdison in each year will be treated as an addback in the reconciliation of net cash used in operating activities to estimated cash available for distribution. |
(c) |
Represents economic ownership of certain acquired operating assets which accrued to TerraForm Power prior to the acquisition close date. |
44 |
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||||||
(In thousands) |
2015 |
2014 |
2015 |
2014 | ||||||||||||
Adjustments to reconcile Operating revenues, net to adjusted revenue |
||||||||||||||||
Operating revenues, net |
$ |
130,046 |
|
$ |
22,378 |
|
$ |
200,561 |
|
$ |
30,770 |
| ||||
Unrealized (gain) loss on derivatives (a) |
(2,488 |
) |
— |
|
1,814 |
|
— |
| ||||||||
Amortization of intangible assets (b) |
5,359 |
|
771 |
|
5,023 |
|
771 |
| ||||||||
Other non-cash |
(1,065 |
) |
— |
|
(644 |
) |
— |
| ||||||||
Adjusted revenue |
$ |
131,852 |
|
$ |
23,149 |
|
$ |
206,754 |
|
$ |
31,541 |
|
(a) |
Represents the change in the fair value of commodity contracts not designated as hedges. |
(b) |
Represents net amortization of intangible assets related to above market rate and below market rate energy revenue contracts included within operating revenues. |
45 |
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
(In thousands) |
2015 |
2014 |
2015 |
2014 | ||||||||||||
Operating revenues, net |
$ |
130,046 |
|
$ |
22,378 |
|
|
$ |
200,561 |
|
$ |
30,770 |
| |||
Operating costs and expenses: |
||||||||||||||||
Cost of operations |
18,409 |
|
1,408 |
|
|
35,229 |
|
1,890 |
| |||||||
Cost of operations - affiliate |
4,174 |
|
825 |
|
|
7,817 |
|
1,217 |
| |||||||
General and administrative |
4,521 |
|
358 |
|
|
13,569 |
|
456 |
| |||||||
General and administrative - affiliate |
17,857 |
|
2,142 |
|
|
24,775 |
|
3,732 |
| |||||||
Acquisition and related costs |
6,664 |
|
1,235 |
|
|
20,386 |
|
1,235 |
| |||||||
Acquisition and related costs - affiliate |
604 |
|
— |
|
|
1,040 |
|
— |
| |||||||
Formation and offering related fees and expenses |
— |
|
2,863 |
|
|
— |
|
2,863 |
| |||||||
Depreciation, accretion and amortization |
38,136 |
|
4,953 |
|
|
70,027 |
|
8,387 |
| |||||||
Total operating costs and expenses |
90,365 |
|
13,784 |
|
|
172,843 |
|
19,780 |
| |||||||
Operating income |
39,681 |
|
8,594 |
|
|
27,718 |
|
10,990 |
| |||||||
Other expenses: |
||||||||||||||||
Interest expense, net |
35,961 |
|
24,621 |
|
|
72,816 |
|
32,148 |
| |||||||
(Gain) loss on extinguishment of debt, net |
(11,386 |
) |
1,945 |
|
|
8,652 |
|
1,945 |
| |||||||
(Gain) loss on foreign currency exchange, net |
(14,439 |
) |
79 |
|
|
(70 |
) |
674 |
| |||||||
Other, net |
(803 |
) |
— |
|
|
(323 |
) |
— |
| |||||||
Total other expenses, net |
9,333 |
|
26,645 |
|
|
81,075 |
|
34,767 |
| |||||||
Income (loss) before income tax expense (benefit) |
30,348 |
|
(18,051 |
) |
|
(53,357 |
) |
(23,777 |
) | |||||||
Income tax expense (benefit) |
1,214 |
|
(5,318 |
) |
|
1,169 |
|
(6,875 |
) | |||||||
Net income (loss) |
29,134 |
|
(12,733 |
) |
|
(54,526 |
) |
(16,902 |
) | |||||||
Less: Predecessor loss prior to initial public offering on July 23, 2014 |
— |
|
(13,204 |
) |
|
— |
|
(17,012 |
) | |||||||
Less: Net income attributable to redeemable non-controlling interests |
1,796 |
|
— |
|
1,627 |
|
— |
| ||||||||
Less: Net income (loss) attributable to non-controlling interests |
9,903 |
|
471 |
|
|
(45,472 |
) |
110 |
| |||||||
Net income (loss) attributable to Class A common stockholders |
$ |
17,435 |
|
$ |
— |
|
|
$ |
(10,681 |
) |
$ |
— |
|
46 |
|
Three Months Ended June 30, |
|||||||||||
Operating Revenues, net (in thousands, other than MW data) |
2015 |
2014 |
Change | |||||||||
Energy: |
||||||||||||
Solar |
$ |
62,274 |
|
$ |
12,421 |
|
$ |
49,853 |
| |||
Wind |
29,664 |
|
— |
|
29,664 |
| ||||||
Incentives including affiliates: |
||||||||||||
Solar |
33,194 |
|
9,957 |
|
23,237 |
| ||||||
Wind |
4,914 |
|
— |
|
4,914 |
| ||||||
Total operating revenues, net |
$ |
130,046 |
|
$ |
22,378 |
|
$ |
107,668 |
| |||
MWh Sold |
944,306 |
|
145,411 |
|
||||||||
Nameplate Megawatt Capacity (MW)¹ |
1,883.5 |
|
322.3 |
|
(1) |
Operational at end of period. |
(In thousands) |
Solar |
Wind |
Total | |||||||||
Increase in energy revenues from projects achieving commercial operations |
$ |
14,958 |
|
$ |
— |
|
$ |
14,958 |
| |||
Increase in energy revenues from acquisitions of operating renewable energy facilities from third parties |
27,133 |
|
29,664 |
|
56,797 |
| ||||||
Increase in energy revenues from acquisitions of Call Right Projects from SunEdison |
8,744 |
|
— |
|
8,744 |
| ||||||
Amortization of acquired PPA intangible assets |
(6,130 |
) |
— |
|
(6,130 |
) | ||||||
Existing renewable energy facility energy revenue |
5,148 |
|
— |
|
5,148 |
| ||||||
$ |
49,853 |
|
$ |
29,664 |
|
$ |
79,517 |
|
(In thousands) |
Solar |
Wind |
Total | |||||||||
Increase in incentive revenues from projects achieving commercial operations |
$ |
3,480 |
|
$ |
— |
|
$ |
3,480 |
| |||
Increase in incentive revenues from acquisitions of operating renewable energy facilities from third parties |
9,079 |
|
4,914 |
|
13,993 |
| ||||||
Increase in incentive revenues from acquisitions of Call Right Projects from SunEdison |
8,809 |
|
— |
|
8,809 |
| ||||||
Existing renewable energy facility incentive revenue |
1,869 |
|
— |
|
1,869 |
| ||||||
$ |
23,237 |
|
$ |
4,914 |
|
$ |
28,151 |
|
47 |
Three Months Ended June 30, |
||||||||||||
Cost of operations (in thousands) |
2015 |
2014 |
Change | |||||||||
Cost of operations: |
||||||||||||
Solar |
$ |
9,373 |
|
$ |
1,408 |
|
$ |
7,965 |
| |||
Wind |
9,036 |
|
— |
|
9,036 |
| ||||||
Cost of operations - affiliate: |
||||||||||||
Solar |
4,174 |
|
825 |
|
3,349 |
| ||||||
Wind |
— |
|
— |
|
— |
| ||||||
Total cost of operations |
$ |
22,583 |
|
$ |
2,233 |
|
$ |
20,350 |
|
(In thousands) |
Solar |
Wind |
Total | |||||||||
Increase in cost of operations relating to projects achieving commercial operations |
$ |
1,144 |
|
$ |
— |
|
$ |
1,144 |
| |||
Increase in cost of operations relating to acquisitions of operating renewable energy facilities from third parties |
3,289 |
|
9,036 |
|
12,325 |
| ||||||
Increase in cost of operations relating to acquisitions of Call Right Projects from SunEdison |
1,730 |
|
— |
|
1,730 |
| ||||||
Existing renewable energy facility cost of operations |
1,802 |
|
— |
|
1,802 |
| ||||||
$ |
7,965 |
|
$ |
9,036 |
|
$ |
17,001 |
|
(In thousands) |
Solar |
Wind |
Total | |||||||||
Increase in cost of operations - affiliate relating to projects achieving commercial operations |
$ |
860 |
|
$ |
— |
|
$ |
860 |
| |||
Increase in cost of operations from acquisitions - affiliate of operating renewable energy facilities relating to third parties |
1,388 |
|
— |
|
1,388 |
| ||||||
Increase in cost of operations - affiliate relating to acquisitions of Call Right Projects from SunEdison |
522 |
|
— |
|
522 |
| ||||||
Existing renewable energy facility cost of operations - affiliate |
579 |
|
— |
|
579 |
| ||||||
$ |
3,349 |
|
$ |
— |
|
$ |
3,349 |
|
Three Months Ended June 30, |
||||||||||||
General and administrative (in thousands) |
2015 |
2014 |
Change | |||||||||
General and administrative: |
||||||||||||
Project-level |
$ |
2,191 |
|
$ |
356 |
|
$ |
1,835 |
| |||
Corporate |
2,330 |
|
2 |
|
2,328 |
| ||||||
General and administrative - affiliate: |
||||||||||||
Corporate |
17,857 |
|
2,142 |
|
15,715 |
| ||||||
Total general and administrative |
$ |
22,378 |
|
$ |
2,500 |
|
$ |
19,878 |
|
48 |
(In thousands) |
General and administrative |
General and administrative - affiliate | ||||||
Increase due to stock-based compensation expense |
$ |
2,330 |
|
$ |
— |
| ||
Increases project-level costs related to owning more renewable energy facilities |
1,833 |
|
— |
| ||||
Increased corporate costs due to growth and additional costs related to being a public company |
— |
|
15,715 |
| ||||
Total change |
$ |
4,163 |
|
$ |
15,715 |
|
(In thousands) |
Solar |
Wind |
Total | |||||||||
Increases in depreciation, accretion and amortization relating to projects achieving commercial operations |
$ |
5,384 |
|
$ |
— |
|
$ |
5,384 |
| |||
Increases in depreciation, accretion and amortization relating to acquisitions of operating renewable energy facilities from third parties |
10,583 |
|
8,599 |
|
19,182 |
| ||||||
Increases in depreciation, accretion and amortization relating to acquisitions of Call Right Projects from SunEdison |
6,738 |
|
— |
|
6,738 |
| ||||||
Increases in depreciation, accretion and amortization relating to existing renewable energy facility revenue |
1,879 |
|
— |
|
1,879 |
| ||||||
$ |
24,584 |
|
$ |
8,599 |
|
$ |
33,183 |
|
49 |
|
Three Months Ended June 30, |
|||||||||||
(In thousands) |
2015 |
2014 |
Change | |||||||||
Corporate-level |
$ |
16,820 |
|
$ |
17,191 |
|
$ |
(371 |
) | |||
Project-level: |
||||||||||||
Solar |
19,047 |
|
7,430 |
|
11,617 |
| ||||||
Wind |
94 |
|
— |
|
94 |
| ||||||
Total interest expense, net |
$ |
35,961 |
|
$ |
24,621 |
|
$ |
11,340 |
|
Three Months Ended June 30, | ||||||||
(Gain) Loss on Extinguishment of Debt |
2015 |
2014 | ||||||
Duke Energy |
$ |
(11,386 |
) |
$ |
— |
| ||
Alamosa |
— |
|
1,945 |
| ||||
Total net (gain) loss on extinguishment of debt |
$ |
(11,386 |
) |
$ |
1,945 |
|
50 |
|
Six Months Ended June 30, |
|||||||||||
Operating Revenues, net (in thousands, other than MW data) |
2015 |
2014 |
Change | |||||||||
Energy: |
||||||||||||
Solar |
$ |
97,981 |
|
$ |
19,107 |
|
$ |
78,874 |
| |||
Wind |
44,861 |
|
— |
|
44,861 |
| ||||||
Incentives including affiliates: |
||||||||||||
Solar |
45,857 |
|
11,663 |
|
34,194 |
| ||||||
Wind |
11,862 |
|
— |
|
11,862 |
| ||||||
Total operating revenues, net |
$ |
200,561 |
|
$ |
30,770 |
|
$ |
169,791 |
| |||
MWh Sold |
1,546,127 |
|
190,798 |
|
||||||||
Nameplate Megawatt Capacity (MW)¹ |
1,883.5 |
|
322.3 |
|
(1) |
Operational at end of period. |
(In thousands) |
Solar |
Wind |
Total | |||||||||
Increase in energy revenues from projects achieving commercial operations |
$ |
20,794 |
|
$ |
— |
|
$ |
20,794 |
| |||
Increase in energy revenues from acquisitions of operating renewable energy facilities from third parties |
42,232 |
|
44,861 |
|
87,093 |
| ||||||
Increase in energy revenues from acquisitions of Call Right Projects from SunEdison |
9,912 |
|
— |
|
9,912 |
| ||||||
Amortization of acquired PPA intangible assets |
(5,793 |
) |
— |
|
(5,793 |
) | ||||||
Existing renewable energy facility energy revenue |
11,729 |
|
— |
|
11,729 |
| ||||||
$ |
78,874 |
|
$ |
44,861 |
|
$ |
123,735 |
|
(In thousands) |
Solar |
Wind |
Total | |||||||||
Increase in incentive revenues from projects achieving commercial operations |
$ |
5,257 |
|
$ |
— |
|
$ |
5,257 |
| |||
Increase in incentive revenues from acquisitions of operating renewable energy facilities from third parties |
13,773 |
|
11,862 |
|
25,635 |
| ||||||
Increase in incentive revenues from acquisitions of Call Right Projects from SunEdison |
9,653 |
|
— |
|
9,653 |
| ||||||
Existing renewable energy facility incentive revenue |
5,511 |
|
— |
|
5,511 |
| ||||||
$ |
34,194 |
|
$ |
11,862 |
|
$ |
46,056 |
|
51 |
Six Months Ended June 30, |
||||||||||||
Cost of operations (in thousands) |
2015 |
2014 |
Change | |||||||||
Cost of operations: |
||||||||||||
Solar |
$ |
16,345 |
|
$ |
1,890 |
|
$ |
14,455 |
| |||
Wind |
18,884 |
|
— |
|
18,884 |
| ||||||
Cost of operations - affiliate: |
||||||||||||
Solar |
7,817 |
|
1,217 |
|
6,600 |
| ||||||
Wind |
— |
|
— |
|
— |
| ||||||
Total cost of operations |
$ |
43,046 |
|
$ |
3,107 |
|
$ |
39,939 |
|
(In thousands) |
Solar |
Wind |
Total | |||||||||
Increase in cost of operations relating to projects achieving commercial operations |
$ |
2,236 |
|
$ |
— |
|
$ |
2,236 |
| |||
Increase in cost of operations relating to acquisitions of operating renewable energy facilities from third parties |
6,183 |
|
18,884 |
|
25,067 |
| ||||||
Increase in cost of operations relating to acquisitions of Call Right Projects from SunEdison |
2,394 |
|
— |
|
2,394 |
| ||||||
Existing renewable energy facility cost of operations |
3,642 |
|
— |
|
3,642 |
| ||||||
$ |
14,455 |
|
$ |
18,884 |
|
$ |
33,339 |
|
(In thousands) |
Solar |
Wind |
Total | |||||||||
Increase in cost of operations - affiliate relating to projects achieving commercial operations |
$ |
1,716 |
|
$ |
— |
|
$ |
1,716 |
| |||
Increase in cost of operations from acquisitions - affiliate of operating renewable energy facilities relating to third parties |
2,780 |
|
— |
|
2,780 |
| ||||||
Increase in cost of operations - affiliate relating to acquisitions of Call Right Projects from SunEdison |
865 |
|
— |
|
865 |
| ||||||
Existing renewable energy facility cost of operations - affiliate |
1,239 |
|
— |
|
1,239 |
| ||||||
$ |
6,600 |
|
$ |
— |
|
$ |
6,600 |
|
Six months ended June 30, |
||||||||||||
General and administrative (in thousands) |
2015 |
2014 |
Change | |||||||||
General and administrative: |
||||||||||||
Project-level |
$ |
6,095 |
|
$ |
454 |
|
$ |
5,641 |
| |||
Corporate |
7,474 |
|
2 |
|
7,472 |
| ||||||
General and administrative - affiliate: |
||||||||||||
Corporate |
24,775 |
|
3,732 |
|
21,043 |
| ||||||
Total general and administrative |
$ |
38,344 |
|
$ |
4,188 |
|
$ |
34,156 |
|
52 |
(In thousands) |
General and administrative |
General and administrative - affiliate | ||||||
Increase due to stock-based compensation expense |
$ |
7,474 |
|
$ |
— |
| ||
Increases project-level costs related to owning more renewable energy facilities |
5,639 |
|
— |
| ||||
Increased corporate costs due to growth and additional costs related to being a public company |
— |
|
21,043 |
| ||||
Total change |
$ |
13,113 |
|
$ |
21,043 |
|
(In thousands) |
Solar |
Wind |
Total | |||||||||
Increases in depreciation, accretion and amortization relating to projects achieving commercial operations |
$ |
9,887 |
|
$ |
— |
|
$ |
9,887 |
| |||
Increases in depreciation, accretion and amortization relating to acquisitions of operating renewable energy facilities from third parties |
20,537 |
|
14,735 |
|
35,272 |
| ||||||
Increases in depreciation, accretion and amortization relating to acquisitions of Call Right Projects from SunEdison |
7,970 |
|
— |
|
7,970 |
| ||||||
Increases in depreciation, accretion and amortization relating to existing renewable energy facility revenue |
8,511 |
|
— |
|
8,511 |
| ||||||
$ |
46,905 |
|
$ |
14,735 |
|
$ |
61,640 |
|
53 |
|
Six Months Ended June 30, |
|||||||||||
(In thousands) |
2015 |
2014 |
Change | |||||||||
Corporate-level |
$ |
36,580 |
|
$ |
17,718 |
|
$ |
18,862 |
| |||
Project-level: |
||||||||||||
Solar |
35,385 |
|
14,430 |
|
20,955 |
| ||||||
Wind |
851 |
|
— |
|
851 |
| ||||||
Total interest expense, net |
$ |
72,816 |
|
$ |
32,148 |
|
$ |
40,668 |
|
Six Months Ended June 30, | ||||||||
Loss (Gain) on Extinguishment of Debt |
2015 |
2014 | ||||||
Term Loan extinguishment and related fees |
$ |
12,320 |
|
$ |
— |
| ||
Revolver |
1,306 |
|
— |
| ||||
First Wind |
6,412 |
|
— |
| ||||
Duke Energy |
(11,386 |
) |
— |
| ||||
Alamosa |
— |
|
1,945 |
| ||||
Total net loss on extinguishment of debt |
$ |
8,652 |
|
$ |
1,945 |
|
54 |
55 |
(In thousands) |
Remainder of 2015¹ |
2016² |
2017 |
2018 |
2019 |
Thereafter |
Total | |||||||||||||||||||||
Maturities of long-term debt as of June 30, 2015 |
$ |
98,159 |
|
$ |
310,066 |
|
$ |
37,864 |
|
$ |
39,374 |
|
$ |
50,229 |
|
$ |
1,733,813 |
|
$ |
2,269,505 |
|
(1) |
The amount of long-term debt due in 2015 includes $65.4 million of construction debt for the U.S. Call Right Projects. |
(2) |
The amount of long-term debt due in 2016 includes GBP 172.6 million (USD $271.3 million) of debt for the Fairwinds & Crundale facilities and the U.K. Call Right Projects. |
56 |
• |
Terra LLC has made cash distributions to the holders of its Class A units, Class B1 units and, subject to the Distribution Forbearance Provisions, Class B units in an amount equal to the Minimum Quarterly Distribution; and |
• |
Terra LLC has distributed cash to holders of Class A units and holders of Class B1 units in an amount necessary to eliminate any arrearages in payment of the Minimum Quarterly Distribution; |
• |
first, to all holders of Class A units, Class B1 units and, subject to the Distribution Forbearance Provisions, Class B units, pro rata, until each holder receives a total of $0.3386 per unit for that quarter (the “First Target Distribution”) (150.0% of the Minimum Quarterly Distribution); |
• |
second, 85.0% to all holders of Class A units, Class B1 units and, subject to the Distribution Forbearance Provisions, Class B units, pro rata, and 15.0% to the holders of the IDRs, until each holder of Class A units, Class B1 units and, subject to the Distribution Forbearance Provisions, Class B units receives a total of $0.3950 per unit for that quarter (the “Second Target Distribution”) (175.0% of the Minimum Quarterly Distribution); |
• |
third, 75.0% to all holders of Class A units, Class B1 units and, subject to the Distribution Forbearance Provisions, Class B units, pro rata, and 25.0% to the holders of the IDRs, until each holder of Class A units, Class B1 units and, subject to the Distribution Forbearance Provisions, Class B units receives a total of $0.4514 per unit for that quarter (the “Third Target Distribution”) (200.0% of the Minimum Quarterly Distribution); and |
• |
thereafter, 50.0% to all holders of Class A units, Class B1 units and, subject to the Distribution Forbearance Provisions, Class B units, pro rata, and 50.0% to the holders of the IDRs. |
57 |
(In thousands) |
Six Months Ended June 30, |
|||||||||||
2015 |
2014 |
Change | ||||||||||
Net cash provided by operating activities |
$ |
35,300 |
|
$ |
12,236 |
|
$ |
23,064 |
| |||
Net cash used in investing activities |
(1,376,554 |
) |
(702,907 |
) |
(673,647 |
) | ||||||
Net cash provided by financing activities |
1,263,728 |
|
705,543 |
|
558,185 |
|
58 |
59 |
60 |
61 |
TERRAFORM POWER, INC. | ||||||
By: |
/s/ ALEJANDRO HERNANDEZ | |||||
Date: |
August 6, 2015 |
Name: |
Alejandro ("Alex") Hernandez | |||
Title: |
Executive Vice President and Chief Financial Officer (Principal financial officer) |
62 |