Filed Pursuant to Rule 424(b)(3)
Registration No. 333-202757
Prospectus Supplement No. 2
(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 Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 8, 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 May 8, 2015.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 7, 2015
______________________________________________________________
TerraForm Power, Inc.
(Exact name of registrant as specified in its charter)
______________________________________________________________
001-36542
(Commission File Number)
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, including zip code)
(240) 762-7700
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provision (see General Instruction A.2 below):
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
TerraForm Power, Inc. ("TerraForm Power" or the "registrant") is recasting certain financial information included in TerraForm Power's Annual Report on Form 10-K for the year ended December 31, 2014 (the "Form 10-K"), which was filed with the U.S. Securities and Exchange Commission ("SEC") on March 13, 2015. The relevant financial information in the Form 10-K is being recast to reflect the assets and liabilities and the results of operations of renewable energy facilities TerraForm Power acquired from its parent, SunEdison, Inc. ("SunEdison"), subsequent to the date of the Form 10-K, for the period these facilities were owned by SunEdison, in accordance with rules applicable to transactions between entities under common control.
TerraForm Power has revised the following portion of the Form 10-K:
Item 15. Exhibits, Financial Statement Schedules
The revised portion of the Form 10-K described above is attached as Exhibit 99.1 hereto and incorporated herein by reference. All other information in the Form 10-K remains unchanged. This Current Report on Form 8-K does not reflect any subsequent information or events, and without limitation to the foregoing, does not purport to update the relevant portion of the Form 10-K for any uncertainties, risks, events or trends occurring, or known to management. Therefore, this Current Report on Form 8-K should be read in conjunction with the Form 10-K, and the registrant's filings with the SEC subsequent to the filing of the Form 10-K, including its Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, as filed with the SEC on May 7, 2015. References in the exhibits attached hereto to the Form 10-K or parts thereof refer to the Form 10-K, except to the extent portions of such Form 10-K have been recast in Exhibit 99.1 to this Current Report on Form 8-K, in which case, they refer to the applicable recast portion in Exhibit 99.1 to this Current Report on Form 8-K. The information contained in Exhibit 99.1 to this Current Report on Form 8-K is not an amendment to, or a restatement of, the Form 10-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are filed or submitted electronically with this report:
Exhibit Number | Description | |
99.1 | Updates to Item 15 of the Annual Report on Form 10-K for the year ended December 31, 2014 of TerraForm Power, Inc., filed on March 13, 2015. | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
TERRAFORM POWER, INC. | ||||||
By: | /s/ ALEJANDRO HERNANDEZ | |||||
Date: | May 7, 2015 | Name: | Alejandro ("Alex") Hernandez | |||
Title: | Executive Vice President and Chief Financial Officer (Principal financial officer) |
Exhibit Number | Description | |
99.1 | Updates to Item 15 of the Annual Report on Form 10-K for the year ended December 31, 2014 of TerraForm Power, Inc., filed on March 13, 2015. | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
Page # | ||
|
Year Ended December 31, | ||||||||||
2014 |
2013 |
2012 | |||||||||
Operating revenues, net |
$ |
125,864 |
|
$ |
17,469 |
|
$ |
15,694 |
| ||
Operating costs and expenses: |
|||||||||||
Cost of operations |
10,544 |
|
1,024 |
|
837 |
| |||||
Cost of operations - affiliate |
7,903 |
|
911 |
|
680 |
| |||||
General and administrative |
20,984 |
|
289 |
|
177 |
| |||||
General and administrative - affiliate |
19,144 |
|
5,158 |
|
4,425 |
| |||||
Acquisition and related costs |
10,177 |
|
— |
|
— |
| |||||
Acquisition and related costs - affiliate |
5,049 |
|
— |
|
— |
| |||||
Formation and offering related fees and expenses |
3,570 |
|
— |
|
— |
| |||||
Formation and offering related fees and expenses - affiliate |
1,870 |
|
— |
|
— |
| |||||
Depreciation, accretion and amortization |
40,509 |
|
4,961 |
|
4,267 |
| |||||
Total operating costs and expenses |
119,750 |
|
12,343 |
|
10,386 |
| |||||
Operating income |
6,114 |
|
5,126 |
|
5,308 |
| |||||
Other expense (income): |
|||||||||||
Interest expense, net |
84,418 |
|
6,267 |
|
5,702 |
| |||||
Gain on extinguishment of debt, net |
(7,635 |
) |
— |
|
— |
| |||||
Loss/(Gain) on foreign currency exchange, net |
14,007 |
|
(771 |
) |
— |
| |||||
Other, net |
438 |
|
— |
|
— |
| |||||
Total other expenses, net |
91,228 |
|
5,496 |
|
5,702 |
| |||||
Loss before income tax benefit |
(85,114 |
) |
(370 |
) |
(394 |
) | |||||
Income tax benefit |
(4,689 |
) |
(88 |
) |
(1,270 |
) | |||||
Net (loss) income |
(80,425 |
) |
$ |
(282 |
) |
$ |
876 |
| |||
Less: Predecessor loss prior to initial public offering on July 23, 2014 |
(10,357 |
) |
|||||||||
Net loss subsequent to initial public offering |
(70,068 |
) |
|
| |||||||
Less: Net loss attributable to non-controlling interests |
(44,451 |
) |
|||||||||
Net loss attributable to TerraForm Power, Inc. Class A common stockholders |
$ |
(25,617 |
) |
|
| ||||||
Weighted average number of shares: |
|||||||||||
Class A common stock - Basic and diluted |
29,602 |
|
|||||||||
Loss per share: |
|||||||||||
Class A common stock - Basic and diluted |
$ |
(0.87 |
) |
|
Year Ended December 31, | |||||||||||
2014 |
2013 |
2012 | ||||||||||
Net (loss) income |
$ |
(80,425 |
) |
$ |
(282 |
) |
$ |
876 |
| |||
Other comprehensive loss, net of tax: |
||||||||||||
Translation adjustment |
(3,541 |
) |
— |
|
— |
| ||||||
Unrealized loss on hedging instruments |
(1,925 |
) |
— |
|
— |
| ||||||
Other comprehensive loss, net of tax |
(5,466 |
) |
— |
|
— |
| ||||||
Total comprehensive (loss) income |
(85,891 |
) |
(282 |
) |
876 |
| ||||||
Less: Predecessor comprehensive income (loss) prior to initial public offering on July 23, 2014 |
(10,357 |
) |
(282 |
) |
876 |
| ||||||
Comprehensive loss subsequent to initial public offering |
(75,534 |
) |
$ |
— |
|
$ |
— |
| ||||
Less: comprehensive loss attributable to non-controlling interests |
||||||||||||
Net loss attributable to non-controlling interests |
(44,451 |
) |
||||||||||
Translation adjustment |
(2,392 |
) |
||||||||||
Unrealized loss on hedging instruments |
(1,437 |
) |
||||||||||
Comprehensive loss attributable to non-controlling interests |
(48,280 |
) |
||||||||||
Comprehensive loss attributable to TerraForm Power, Inc. Class A stockholders |
$ |
(27,254 |
) |
ASSETS |
December 31, 2014 |
December 31, 2013 | |||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
468,554 |
|
$ |
1,044 |
| |
Restricted cash, including consolidated variable interest entities of $39,898 and $2,139 in 2014 and 2013, respectively |
70,545 |
|
62,321 |
| |||
Accounts receivable, including consolidated variable interest entities of $16,921 and $0 in 2014 and 2013, respectively |
31,986 |
|
1,505 |
| |||
Deferred income taxes |
— |
|
128 |
| |||
Value-added tax (VAT) receivable |
— |
|
38,281 |
| |||
Due from SunEdison and affiliates, net |
— |
|
— |
| |||
Prepaid expenses and other current assets |
22,620 |
|
3,079 |
| |||
Total current assets |
593,705 |
|
106,358 |
| |||
Property and equipment, net, including consolidated variable interest entities of $1,466,223 and $26,006 in 2014 and 2013, respectively |
2,554,904 |
|
407,356 |
| |||
Intangible assets, net, including consolidated variable interest entities of $259,004 and $0 in 2014 and 2013, respectively |
361,673 |
|
22,600 |
| |||
Deferred financing costs, net |
42,113 |
|
12,397 |
| |||
Restricted cash |
10,455 |
|
7,401 |
| |||
Deferred income taxes |
4,606 |
|
— |
| |||
Other assets, including consolidated variable interest entities of $16,658 and $0 in 2014 and 2013, respectively |
18,964 |
|
10,765 |
| |||
Total assets |
$ |
3,586,420 |
|
$ |
566,877 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
December 31, 2014 |
December 31, 2013 | |||||
Current liabilities: |
|||||||
Current portion of long-term debt and financing lease obligations, including consolidated variable interest entities of $20,907 and $587 in 2014 and 2013, respectively |
$ |
84,104 |
|
$ |
36,682 |
| |
Current portion of capital lease obligations |
— |
|
773 |
| |||
Accounts payable, accrued expenses and other current liabilities, including consolidated variable interest entities of $27,284 and $0 in 2014 and 2013, respectively |
82,605 |
|
8,688 |
| |||
Deferred revenue, including consolidated variable interest entities of $12,941 of $0 in 2014 and 2013, respectively |
21,989 |
|
428 |
| |||
Due to SunEdison and affiliates, net |
153,052 |
|
82,051 |
| |||
Total current liabilities |
341,750 |
|
128,622 |
| |||
Other liabilities: |
|||||||
Long-term debt and financing lease obligations, less current portion, including consolidated variable interest entities of $620,853 and $8,683 in 2014 and 2013, respectively |
1,568,517 |
|
371,427 |
| |||
Long-term capital lease obligations, less current portion |
— |
|
28,398 |
| |||
Deferred revenue, including consolidated variable interest entities of $51,943 and $0 in 2014 and 2013, respectively |
52,081 |
|
5,376 |
| |||
Deferred income taxes |
7,702 |
|
6,600 |
| |||
Asset retirement obligations, including consolidated variable interest entities of $32,181 and $1,627 in 2014 and 2013, respectively |
76,111 |
|
11,002 |
| |||
Total liabilities |
2,046,161 |
|
551,425 |
| |||
Redeemable non-controlling interests |
24,338 |
|
— |
| |||
Stockholders' equity: |
|||||||
Net SunEdison investment |
— |
|
2,674 |
| |||
Preferred stock, $0.01 par value, 50,000 shares authorized, none issued and outstanding in 2014 and 2013 |
— |
|
— |
| |||
Class A common stock, $0.01 par value per share, 850,000 shares authorized, 42,218 issued and outstanding as of December 31, 2014. No shares authorized, issued or outstanding in 2013. |
387 |
|
— |
| |||
Class B common stock, $0.01 par value per share, 140,000 shares authorized, 64,526 issued and outstanding as of December 31, 2014. No shares authorized, issued or outstanding in 2013. |
645 |
|
— |
| |||
Class B1 common stock, $0.01 par value per share: 260,000 shares authorized, 5,840 issued and outstanding as of December 31, 2014. No shares authorized, issued or outstanding in 2013. |
58 |
|
— |
| |||
Additional paid-in capital |
497,556 |
|
— |
| |||
Accumulated deficit |
(25,617 |
) |
— |
| |||
Accumulated other comprehensive loss |
(1,637 |
) |
— |
| |||
Total TerraForm Power stockholders' equity |
471,392 |
|
2,674 |
| |||
Non-controlling interests |
1,044,529 |
|
12,778 |
| |||
Total stockholders' equity |
1,515,921 |
|
15,452 |
| |||
Total liabilities and stockholders' equity |
$ |
3,586,420 |
|
$ |
566,877 |
|
Controlling Interest |
Non-controlling Interests |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net SunEdison Investment |
Preferred Stock |
Class A Common Stock |
Class B Common Stock |
Class B1 Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss) |
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss) |
Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Total |
Capital |
Total |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2012 |
$ |
29,801 |
|
— |
|
$ |
— |
|
— |
|
$ |
— |
|
— |
|
$ |
— |
|
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
29,801 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
29,801 |
| |||||||||||||||||
Net income |
876 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
876 |
|
— |
|
— |
|
— |
|
— |
|
876 |
| |||||||||||||||||||||||||||||||
Contributions from SunEdison |
4,818 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
4,818 |
|
— |
|
— |
|
— |
|
— |
|
4,818 |
| |||||||||||||||||||||||||||||||
Distributions to SunEdison |
(5,466 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(5,466 |
) |
— |
|
— |
|
— |
|
— |
|
(5,466 |
) | |||||||||||||||||||||||||||||||
Balance at January 1, 2013 |
$ |
30,029 |
|
— |
|
$ |
— |
|
— |
|
$ |
— |
|
— |
|
$ |
— |
|
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
30,029 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
30,029 |
| |||||||||||||||||
Net loss |
(282 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(282 |
) |
— |
|
— |
|
— |
|
— |
|
(282 |
) | |||||||||||||||||||||||||||||||
Contributions from SunEdison |
53,417 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
53,417 |
|
— |
|
— |
|
— |
|
— |
|
53,417 |
| |||||||||||||||||||||||||||||||
Distributions to SunEdison |
(80,490 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(80,490 |
) |
— |
|
— |
|
— |
|
— |
|
(80,490 |
) | |||||||||||||||||||||||||||||||
Sale of membership interests in solar generation facilities |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
12,778 |
|
— |
|
— |
|
12,778 |
|
12,778 |
| |||||||||||||||||||||||||||||||
Balance at December 31, 2013 |
$ |
2,674 |
|
— |
|
$ |
— |
|
— |
|
$ |
— |
|
— |
|
$ |
— |
|
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
2,674 |
|
$ |
12,778 |
|
$ |
— |
|
$ |
— |
|
$ |
12,778 |
|
$ |
15,452 |
| |||||||||||||||||
Contributions from SunEdison, net |
417,590 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
417,590 |
|
— |
|
— |
|
— |
|
— |
|
417,590 |
| |||||||||||||||||||||||||||||||
Issuance of Class B common stock to SunEdison at formation |
(657 |
) |
— |
|
— |
|
— |
|
— |
|
65,709 |
|
657 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||||||||||||||||||||||||||
Sale of membership interests in solar generation facilities |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
1,928 |
|
— |
|
— |
|
1,928 |
|
1,928 |
| |||||||||||||||||||||||||||||||
Consolidation of 50% non-controlling interest in Mt. Signal, net of cash |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
146,000 |
|
— |
|
— |
|
146,000 |
|
146,000 |
| |||||||||||||||||||||||||||||||||
Consolidation of non-controlling interests in acquired solar generation facilities |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
74,460 |
|
— |
|
— |
|
74,460 |
|
74,460 |
| |||||||||||||||||||||||||||||||
Issuance of restricted Class A common stock |
— |
|
— |
|
— |
|
4,977 |
|
14 |
|
— |
|
— |
|
— |
|
— |
|
(14 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||||||||||||||||||||||||||
Stock-based compensation |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
566 |
|
— |
|
— |
|
566 |
|
— |
|
— |
|
— |
|
— |
|
566 |
| |||||||||||||||||||||||||||||||
Net loss |
(10,357 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(10,357 |
) |
— |
|
643 |
|
— |
|
643 |
|
(9,714 |
) | |||||||||||||||||||||||||||||||
Balance at July 23, 2014 |
$ |
409,250 |
|
— |
|
$ |
— |
|
4,977 |
|
$ |
14 |
|
65,709 |
|
$ |
657 |
|
— |
|
$ |
— |
|
$ |
552 |
|
— |
|
$ |
— |
|
$ |
410,473 |
|
$ |
235,166 |
|
$ |
643 |
|
$ |
— |
|
$ |
235,809 |
|
$ |
646,282 |
|
Controlling Interest |
Non-controlling Interests |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net SunEdison Investment |
Preferred Stock |
Class A Common Stock |
Class B Common Stock |
Class B1 Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss) |
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss) |
Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Total |
Capital |
Total |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 23, 2014 |
$ |
409,250 |
|
— |
|
$ |
— |
|
4,977 |
|
$ |
14 |
|
65,709 |
|
$ |
657 |
|
— |
|
$ |
— |
|
$ |
552 |
|
$ |
— |
|
$ |
— |
|
$ |
410,473 |
|
$ |
235,166 |
|
$ |
643 |
|
$ |
— |
|
$ |
235,809 |
|
$ |
646,282 |
| |||||||||||||||||
Write off U.S. deferred tax assets and liabilities at IPO |
3,616 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
3,616 |
|
— |
|
— |
|
— |
|
— |
|
3,616 |
| |||||||||||||||||||||||||||||||
Issuance of Class B common stock to SunEdison at IPO |
(58 |
) |
— |
|
— |
|
— |
|
— |
|
5,840 |
|
58 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||||||||||||||||||||||||||
Issuance of Class B membership units in TerraForm LLC to SunEdison at IPO |
(412,808 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(222,155 |
) |
— |
|
— |
|
(634,963 |
) |
634,963 |
|
— |
|
— |
|
634,963 |
|
— |
| |||||||||||||||||||||||||||||||
Issuance of class B1 common stock to Riverstone at IPO |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
5,840 |
|
58 |
|
145,942 |
|
— |
|
— |
|
146,000 |
|
(146,000 |
) |
— |
|
— |
|
(146,000 |
) |
— |
| |||||||||||||||||||||||||||||||
Issuance of Class B1 membership units in TerraForm LLC to Riverstone at IPO |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(57,633 |
) |
— |
|
— |
|
(57,633 |
) |
57,633 |
|
— |
|
— |
|
57,633 |
|
— |
| |||||||||||||||||||||||||||||||
Issuance of Class A common stock related to the public offering, net of issuance costs |
— |
|
— |
|
— |
|
23,075 |
|
231 |
|
(7,023 |
) |
(70 |
) |
— |
|
— |
|
368,460 |
|
— |
|
— |
|
368,621 |
|
— |
|
— |
|
— |
|
— |
|
368,621 |
| |||||||||||||||||||||||||||||||
Issuance of Class A common stock related to the Private Placement at IPO |
— |
|
— |
|
— |
|
2,600 |
|
26 |
|
— |
|
— |
|
— |
|
— |
|
64,974 |
|
— |
|
— |
|
65,000 |
|
— |
|
— |
|
— |
|
— |
|
65,000 |
| |||||||||||||||||||||||||||||||
Issuance of Class A common stock related to the Private Placement |
— |
|
— |
|
— |
|
11,667 |
|
116 |
|
— |
|
— |
|
— |
|
— |
|
336,684 |
|
— |
|
— |
|
336,800 |
|
— |
|
— |
|
— |
|
— |
|
336,800 |
| |||||||||||||||||||||||||||||||
Forfeiture of restricted Class A common stock |
— |
|
— |
|
— |
|
(101 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||||||||||||||||||||||||||
Dividends paid |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(7,249 |
) |
— |
|
— |
|
(7,249 |
) |
— |
|
— |
|
— |
|
— |
|
(7,249 |
) | |||||||||||||||||||||||||||||||
Stock-based compensation |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
5,221 |
|
— |
|
— |
|
5,221 |
|
— |
|
— |
|
— |
|
— |
|
5,221 |
| |||||||||||||||||||||||||||||||
Net loss |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(25,617 |
) |
— |
|
(25,617 |
) |
— |
|
(45,094 |
) |
— |
|
(45,094 |
) |
(70,711 |
) | |||||||||||||||||||||||||||||||
Contributions from SunEdison |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
1,869 |
|
— |
|
— |
|
1,869 |
|
3,987 |
|
— |
|
— |
|
3,987 |
|
5,856 |
| |||||||||||||||||||||||||||||||
Other comprehensive loss |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(1,637 |
) |
(1,637 |
) |
— |
|
— |
|
(3,829 |
) |
(3,829 |
) |
(5,466 |
) | |||||||||||||||||||||||||||||||
Consolidation of non-controlling interests in acquired solar generation facilities |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
6,460 |
|
— |
|
— |
|
6,460 |
|
6,460 |
| |||||||||||||||||||||||||||||||
Sale of membership interests in solar generation facilities |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
162,814 |
|
— |
|
— |
|
162,814 |
|
162,814 |
| |||||||||||||||||||||||||||||||
Distributions to non-controlling interests |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(1,323 |
) |
— |
|
— |
|
(1,323 |
) |
(1,323 |
) | |||||||||||||||||||||||||||||||
Adjustments to non-controlling interests |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(139,109 |
) |
— |
|
— |
|
(139,109 |
) |
139,109 |
|
— |
|
— |
|
139,109 |
|
— |
| |||||||||||||||||||||||||||||||
Balance at December 31, 2014 |
$ |
— |
|
— |
|
$ |
— |
|
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 |
|
Year Ended December 31, | |||||||||||
2014 |
2013 |
2012 | |||||||||
Cash flows from operating activities: |
|||||||||||
Net income (loss) |
$ |
(80,425 |
) |
$ |
(282 |
) |
$ |
876 |
| ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|||||||||||
Non-cash incentive revenue |
(1,746 |
) |
(1,761 |
) |
(1,831 |
) | |||||
Non-cash interest expense |
877 |
|
1,139 |
|
1,119 |
| |||||
Stock compensation expense |
5,787 |
|
— |
|
— |
| |||||
Depreciation, accretion and amortization |
40,509 |
|
4,961 |
|
4,267 |
| |||||
Amortization of intangible assets |
4,190 |
|
— |
|
— |
| |||||
Amortization of deferred financing costs and debt discounts |
25,713 |
|
119 |
|
161 |
| |||||
Recognition of deferred revenue |
(258 |
) |
(205 |
) |
(190 |
) | |||||
Gain on extinguishment of debt, net |
(7,635 |
) |
— |
|
— |
| |||||
Unrealized loss (gain) on foreign currency exchange |
11,920 |
|
(771 |
) |
— |
| |||||
Deferred taxes |
(4,773 |
) |
(253 |
) |
(1,270 |
) | |||||
Other, net |
(8,394 |
) |
13 |
|
214 |
| |||||
Changes in assets and liabilities: |
|||||||||||
Accounts receivable |
(3,432 |
) |
(892 |
) |
106 |
| |||||
VAT receivable, prepaid expenses and other current assets |
22,911 |
|
(33,701 |
) |
(786 |
) | |||||
Accounts payable, accrued interest, and other current liabilities |
4,236 |
|
4,774 |
|
(613 |
) | |||||
Deferred revenue |
68,722 |
|
792 |
|
173 |
| |||||
Due to SunEdison and affiliates |
4,422 |
|
18,865 |
|
664 |
| |||||
Net cash provided by (used in) operating activities |
82,624 |
|
(7,202 |
) |
2,890 |
| |||||
Cash flows from investing activities: |
|||||||||||
Cash paid to SunEdison and third parties for solar generation facility construction |
(1,052,871 |
) |
(205,361 |
) |
(2,274 |
) | |||||
Acquisitions of solar generation facilities from third parties, net of cash acquired |
(644,890 |
) |
— |
|
— |
| |||||
Receipts of grants in lieu of tax credits |
— |
|
— |
|
5,466 |
| |||||
Due to SunEdison and affiliates |
(56,088 |
) |
— |
|
— |
| |||||
Change in restricted cash |
23,635 |
|
(58,878 |
) |
(3,602 |
) | |||||
Net cash used in investing activities |
(1,730,214 |
) |
(264,239 |
) |
(410 |
) |
(In thousands) |
Year Ended December 31, | ||||||||||
2014 |
2013 |
2012 | |||||||||
Cash flows from financing activities: |
|||||||||||
Proceeds from issuance of Class A common stock |
770,421 |
|
— |
|
— |
| |||||
Change in restricted cash for principal debt service |
1,897 |
|
2,834 |
|
475 |
| |||||
Proceeds from term loan |
575,000 |
|
— |
|
— |
| |||||
Proceeds from bridge loan |
400,000 |
|
— |
|
— |
| |||||
Due to Affiliate for Acquisition of Call Right Projects |
138,693 |
|
— |
|
— |
| |||||
Repayment of bridge loan |
(400,000 |
) |
— |
|
— |
| |||||
Borrowings of long-term debt |
463,683 |
|
304,729 |
|
— |
| |||||
Principal payments on long-term debt |
(341,336 |
) |
(4,641 |
) |
(2,291 |
) | |||||
Contributions from non-controlling interests |
164,742 |
|
12,778 |
|
— |
| |||||
Distributions to non-controlling interests |
(1,323 |
) |
— |
|
— |
| |||||
Net SunEdison investment |
405,062 |
|
(32,702 |
) |
(648 |
) | |||||
Payment of dividends |
(7,249 |
) |
— |
|
— |
| |||||
Payment of deferred financing costs |
(54,060 |
) |
(10,516 |
) |
(13 |
) | |||||
Net cash provided by (used in) financing activities |
2,115,530 |
|
272,482 |
|
(2,477 |
) | |||||
Net increase in cash and cash equivalents |
467,940 |
|
1,041 |
|
3 |
| |||||
Effect of exchange rate changes on cash and cash equivalents |
(430 |
) |
— |
|
— |
| |||||
Cash and cash equivalents at beginning of period |
1,044 |
|
3 |
|
— |
| |||||
Cash and cash equivalents at end of period |
$ |
468,554 |
|
$ |
1,044 |
|
$ |
3 |
|
Year Ended December 31, | |||||||||||
2014 |
2013 |
2012 | |||||||||
Supplemental Disclosures: |
|||||||||||
Cash paid for interest, net of amounts capitalized of $19,694, $3,599, and $0, respectively |
$ |
79,867 |
|
$ |
8,564 |
|
$ |
4,946 |
| ||
Cash paid for income taxes |
— |
|
— |
|
— |
| |||||
Schedule of non-cash activities: |
|||||||||||
Additions to property and equipment in accounts payable, accrued expenses and other current liabilities |
15,046 |
|
— |
|
— |
| |||||
Additions to property and equipment in Due from SunEdison and affiliates |
9,780 |
|
54,090 |
|
3,978 |
| |||||
Additions of asset retirement obligation (ARO) assets and liabilities |
34,414 |
|
4,518 |
|
37 |
| |||||
ARO assets and obligations from acquisitions |
29,450 |
|
— |
|
— |
| |||||
Amortization of deferred financing costs capitalized as construction in progress |
17,589 |
|
791 |
|
— |
| |||||
Decrease in due to SunEdison and affiliates in exchange for equity |
14,768 |
|
— |
|
— |
| |||||
Write off of pre-IPO U.S. deferred tax assets and liabilities |
3,616 |
|
— |
|
— |
| |||||
Issuance of Class B1 common stock to Riverstone for Mt. Signal |
146,000 |
|
— |
|
— |
| |||||
Non-controlling interest in Terra LLC (Class B units) issued in connection with the initial public offering |
634,963 |
|
— |
|
— |
| |||||
Non-controlling interest in Terra LLC (Class B1 units) issued in connection with the initial public offering |
57,633 |
|
— |
|
— |
| |||||
Principal payments on long-term debt from solar renewable energy certificates |
869 |
|
622 |
|
712 |
| |||||
Long-term debt assumed in connection with acquisitions |
550,936 |
|
— |
|
— |
| |||||
Additions from a non-monetary transaction by SunEdison: |
|||||||||||
Restricted cash |
— |
|
4,850 |
|
— |
| |||||
Property and equipment |
— |
|
34,514 |
|
— |
| |||||
Debt and financing lease obligations |
— |
|
(31,482 |
) |
— |
| |||||
Deferred tax liability |
— |
|
(2,253 |
) |
— |
| |||||
Total non-cash contribution from SunEdison |
— |
|
5,629 |
|
— |
|
(In thousands) Balance Sheet Caption |
December 31, 2014 As Reported |
Acquired Call Rights Projects |
December 31, 2014 Recast | |||||||||
Cash and cash equivalents |
$ |
468,393 |
|
$ |
161 |
|
$ |
468,554 |
| |||
Due from SunEdison and affiliates, net |
19,640 |
|
(19,640 |
) |
— |
| ||||||
Prepaid expenses and other current assets |
21,840 |
|
780 |
|
22,620 |
| ||||||
Property and equipment, net |
2,327,803 |
|
227,101 |
|
2,554,904 |
| ||||||
Change in total assets |
|
$ |
208,402 |
|
| |||||||
Current portion of long-term debt |
$ |
80,133 |
|
$ |
3,971 |
|
$ |
84,104 |
| |||
Accounts payable, accrued expenses and other current liabilities |
81,781 |
|
824 |
|
82,605 |
| ||||||
Due to SunEdison and affiliates, net |
— |
|
153,052 |
|
153,052 |
| ||||||
Long-term debt and financing lease obligations, less current portion |
1,517,962 |
|
50,555 |
|
1,568,517 |
| ||||||
Change in total liabilities |
|
$ |
208,402 |
|
|
(In thousands) Cash Flows Caption |
December 31, 2014 As Reported |
Acquired Call Rights Projects |
December 31, 2014 Recast | |||||||||
Changes in assets and liabilities: |
||||||||||||
VAT receivable, prepaid expenses and other current assets |
$ |
23,730 |
|
$ |
(819 |
) |
$ |
22,911 |
| |||
Accounts payable, accrued interest, and other current liabilities |
3,371 |
|
865 |
|
4,236 |
| ||||||
Cash flows from investing activities: |
||||||||||||
Cash paid to SunEdison and third parties for solar generation facility construction |
(816,682 |
) |
(236,189 |
) |
(1,052,871 |
) | ||||||
Deposit for acquisition of Call Right Projects |
(34,000 |
) |
34,000 |
|
— |
| ||||||
Cash flows from financing activities: |
||||||||||||
Borrowings of long-term debt |
399,806 |
|
63,877 |
|
463,683 |
| ||||||
Net increase in cash and cash equivalents |
467,513 |
|
427 |
|
467,940 |
| ||||||
Effect of exchange rate changes on cash and cash equivalents |
(164 |
) |
(266 |
) |
(430 |
) | ||||||
Cash and cash equivalents at end of period |
468,393 |
|
161 |
|
468,554 |
|
• |
Level 1: quoted prices in active markets for identical assets or liabilities; |
• |
Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities. |
• |
The amount of purchase price allocated to the various tangible and intangible assets, liabilities, and non-controlling interests on our balance sheet; |
• |
The amounts allocated to the value of above-market and below-market power purchase agreement values are amortized to revenue over the remaining non-cancelable terms of the respective arrangement. The amounts allocated to all other tangible and intangible assets are amortized to depreciation or amortization expense; and |
• |
The period of time over which tangible and intangible assets are depreciated or amortized varies, and thus, changes in the amounts allocated to these assets will have a direct impact on our results of operations. Intangible assets are generally amortized over the respective life of the power purchase arrangement, which normally range from 10 to 25 years. The Company generally depreciates our energy facilities over 30 years. These differences in timing could have an impact on our results of operations. |
Total | |||||||||||||||
Capital |
Other |
Preliminary | |||||||||||||
(In thousands) |
Dynamics |
Mt. Signal |
Acquisitions |
Allocation | |||||||||||
Property and equipment |
$ |
200,712 |
|
$ |
649,005 |
|
$ |
245,828 |
|
$ |
1,095,545 |
| |||
Accounts receivable |
4,511 |
|
11,617 |
|
11,251 |
|
27,379 |
| |||||||
Restricted cash |
15 |
|
22,165 |
|
14,688 |
|
36,868 |
| |||||||
Deferred income taxes |
22,129 |
|
— |
|
— |
|
22,129 |
| |||||||
Other assets |
687 |
|
12,621 |
|
4,987 |
|
18,295 |
| |||||||
Intangible assets |
83,114 |
|
117,925 |
|
140,248 |
|
341,287 |
| |||||||
Total assets acquired |
311,168 |
|
813,333 |
|
417,002 |
|
1,541,503 |
| |||||||
Long-term debt |
— |
|
413,464 |
|
137,472 |
|
550,936 |
| |||||||
Accounts payable, accrued expenses and other current liabilities |
5,925 |
|
24,813 |
|
7,410 |
|
38,148 |
| |||||||
Asset retirement obligations |
6,749 |
|
4,656 |
|
18,058 |
|
29,463 |
| |||||||
Deferred income taxes |
25,191 |
|
— |
|
892 |
|
26,083 |
| |||||||
Total liabilities assumed |
37,865 |
|
442,933 |
|
163,832 |
|
644,630 |
| |||||||
Non-controlling interest |
16,600 |
|
78,745 |
|
9,913 |
|
105,258 |
| |||||||
Purchase price, net of cash acquired |
$ |
256,703 |
|
$ |
291,655 |
|
$ |
243,257 |
|
$ |
791,615 |
|
Year Ended December 31, | |||||||
(In thousands, unaudited) |
2014 |
2013 | |||||
Total operating revenues, net |
$ |
113,324 |
|
$ |
51,450 |
| |
Net loss |
(3,483 |
) |
(10,537 |
) |
(in thousands) |
Fairwinds and Crundale |
DG 2014 Portfolio 1 |
DG 2015 Portfolio 2 |
Total | ||||||||||||
Current Assets |
$ |
3,260 |
|
$ |
1,380 |
|
$ |
— |
|
$ |
4,640 |
| ||||
Property, plant and equipment |
118,197 |
|
55,358 |
|
5,489 |
|
179,044 |
| ||||||||
Non-current assets |
899 |
|
— |
|
— |
|
899 |
| ||||||||
Total assets acquired |
122,356 |
|
56,738 |
|
5,489 |
|
184,583 |
| ||||||||
Long-term debt |
61,982 |
|
1,185 |
|
— |
|
63,167 |
| ||||||||
Other liabilities |
37,741 |
|
17,596 |
|
— |
|
55,337 |
| ||||||||
Total liabilities assumed |
99,723 |
|
18,781 |
|
— |
|
118,504 |
| ||||||||
Net assets acquired |
$ |
22,633 |
|
$ |
37,957 |
|
$ |
5,489 |
|
$ |
66,079 |
|
|
December 31, 2014 |
December 31, 2013 | ||||||
(In thousands) |
|
| ||||||
Solar generation facilities |
$ |
2,220,401 |
|
$ |
163,698 |
| ||
Construction in progress - solar generation facilities |
384,583 |
|
228,749 |
| ||||
Capitalized leases - solar generation facilities |
— |
|
29,170 |
| ||||
Property and equipment, gross |
2,604,984 |
|
421,617 |
| ||||
Less accumulated depreciation - solar generation facilities |
(50,080 |
) |
(9,956 |
) | ||||
Less accumulated depreciation - capitalized leases - solar generation facilities |
— |
|
(4,305 |
) | ||||
Property and equipment, net |
$ |
2,554,904 |
|
$ |
407,356 |
|
|
Year Ended December 31, | |||||||
(In thousands) |
2014 |
2013 | ||||||
Balance at the beginning of the year |
$ |
11,002 |
|
$ |
6,175 |
| ||
Additional obligations |
34,414 |
|
4,518 |
| ||||
Assumed through acquisition |
29,450 |
|
— |
| ||||
Accretion expense |
2,048 |
|
309 |
| ||||
Currency translation adjustment |
(803 |
) |
— |
| ||||
Balance at the end of the year |
$ |
76,111 |
|
$ |
11,002 |
|
(In thousands, except weighted average amortization period) |
Gross Carrying Amount |
Weighted Average Amortization Period |
Accumulated Amortization |
Currency Translation Adjustment |
Net Book Value | |||||||||||||
Power purchase agreements |
$ |
371,765 |
|
21 years |
$ |
(6,169 |
) |
$ |
(3,923 |
) |
$ |
361,673 |
|
(In thousands, except weighted average amortization period) |
Gross Carrying Amount |
Weighted Average Amortization Period |
Accumulated Amortization |
Currency Translation Adjustment |
Net Book Value | |||||||||||
Development rights |
$ |
22,600 |
|
Indefinite |
— |
|
— |
|
$ |
22,600 |
|
(in thousands) |
2015 |
2016 |
2017 |
2018 |
2019 | |||||||||||||||
Amortization |
$ |
18,366 |
|
$ |
19,057 |
|
$ |
19,057 |
|
$ |
19,057 |
|
$ |
19,057 |
|
(In thousands) |
December 31, 2014 |
December 31, 2013 | ||||||
Current assets |
$ |
69,955 |
|
$ |
2,139 |
| ||
Noncurrent assets |
1,756,276 |
|
27,076 |
| ||||
Total assets |
$ |
1,826,231 |
|
$ |
29,215 |
| ||
Current liabilities |
$ |
64,324 |
|
$ |
6,129 |
| ||
Noncurrent liabilities |
707,989 |
|
10,310 |
| ||||
Total liabilities |
$ |
772,313 |
|
$ |
16,439 |
|
(in thousands, except rates) Description: |
December 31, 2014 |
December 31, 2013 |
Interest Type |
Current Interest Rate % (1) |
Financing Type | |||||||||
Term Loan, due 2019 |
$ |
573,500 |
|
$ |
— |
|
Variable |
5.33 (2) |
Term debt | |||||
Mt. Signal, due 2038 |
402,440 |
|
— |
|
Fixed |
6.00 |
Senior notes | |||||||
CAP, due 2032 |
211,377 |
|
243,581 |
|
Variable |
7.00 - 7.29 |
Term debt | |||||||
Regulus Solar, due 2034 |
85,000 |
|
— |
|
Fixed |
5.80 |
Note facility | |||||||
Regulus Solar, due 2024 |
50,433 |
|
— |
|
Variable |
2.22 (3) |
Term debt | |||||||
Regulus Solar, due 2015 – 2016 |
— |
|
44,400 |
|
Fixed |
18.00 |
Construction debt | |||||||
Fairwinds and Crundale, due 2016 |
61,982 |
|
— |
|
Fixed |
2.50 |
Term debt | |||||||
Nellis, due 2027 |
42,248 |
|
— |
|
Imputed |
5.75 |
Senior notes | |||||||
SunE Perpetual Lindsay, due 2015 |
42,992 |
|
— |
|
Variable |
3.3 |
Construction debt and Harmonized Sales Tax Facility | |||||||
California Public Institutions, due 2024 – 2030 |
16,861 |
|
9,270 |
|
Variable |
3.39 (4) |
Term debt | |||||||
U.S. Projects 2009 – 2013, due 2024 – 2026 |
9,338 |
|
10,206 |
|
Fixed |
11.1 - 11.3 |
Solar program loans | |||||||
U.S. Projects 2009 – 2013 |
— |
|
8,638 |
|
Fixed |
5.0 - 5.75 |
Term debt | |||||||
Enfinity, due 2032 |
6,470 |
|
6,775 |
|
Stated |
1.745 |
Term debt | |||||||
U.K Call Right Projects |
52,675 |
|
— |
|
Variable |
2.50 |
Construction debt | |||||||
U.S. Call Right Projects |
1,851 |
|
— |
|
Variable |
5.75 |
Construction debt | |||||||
Alamosa |
— |
|
29,171 |
|
Fixed |
2.98 |
Capital lease obligations | |||||||
Financing lease obligations: |
||||||||||||||
Enfinity, due 2025 – 2032 |
29,124 |
|
31,494 |
|
Fixed |
5.62 - 7.26 |
Financing lease obligations | |||||||
HES Portfolio, due 2019 – 2028 |
24,538 |
|
— |
|
Imputed |
6.50 |
Financing lease obligations | |||||||
Summit Solar U.S., due 2020 – 2032 |
23,127 |
|
— |
|
Fixed |
5.75 |
Financing lease obligations | |||||||
Regulus Solar, due 2034 |
9,138 |
|
— |
|
Fixed |
1.87 |
Financing lease obligations | |||||||
U.S. Projects 2014, due 2019 |
6,869 |
|
— |
|
Imputed |
6.00 |
Financing lease obligations | |||||||
DG 2014 Portfolio 1, due 2023 |
1,185 |
|
— |
|
Fixed |
7.26 |
Financing lease obligations | |||||||
SunE Solar Fund X |
— |
|
55,616 |
|
Fixed |
3.91 - 5.11 |
Financing lease obligations | |||||||
Total Principal long-term debt and financing and capital lease obligations |
$ |
1,651,148 |
|
$ |
439,151 |
|
||||||||
Less current maturities |
(84,104 |
) |
(37,455 |
) |
||||||||||
Net unamortized (discount) premium |
1,473 |
|
(1,871 |
) |
||||||||||
Long-term debt and financing and capital lease obligations, less current portion |
$ |
1,568,517 |
|
$ |
399,825 |
|
(In thousands) |
2015 |
2016 |
2017 |
2018 |
2019 |
Thereafter |
Total | |||||||||||||||||||||
Minimum lease obligations |
$ |
6,292 |
|
$ |
6,612 |
|
$ |
6,947 |
|
$ |
6,889 |
|
$ |
16,395 |
|
$ |
50,846 |
|
$ |
93,981 |
|
(In thousands) |
2015 |
2016 |
2017 |
2018 |
2019 |
Thereafter |
Total | |||||||||||||||||||||
Maturities of long-term debt as of December 31, 2014 |
$ |
77,587 |
|
$ |
147,470 |
|
$ |
33,809 |
|
$ |
35,115 |
|
$ |
580,961 |
|
$ |
682,225 |
|
$ |
1,557,167 |
|
(In thousands) |
Current |
Deferred |
Total | |||||||||
Year ended December 31, 2014 |
||||||||||||
U.S. federal |
$ |
84 |
|
$ |
(3,554 |
) |
$ |
(3,470 |
) | |||
State and local |
— |
|
(213 |
) |
(213 |
) | ||||||
Foreign |
— |
|
(1,006 |
) |
(1,006 |
) | ||||||
Total |
$ |
84 |
|
$ |
(4,773 |
) |
$ |
(4,689 |
) | |||
Tax benefit in equity |
— |
|
(3,616 |
) |
(3,616 |
) | ||||||
Total |
$ |
84 |
|
$ |
(8,389 |
) |
$ |
(8,305 |
) | |||
Year ended December 31, 2013 |
||||||||||||
U.S. federal |
$ |
— |
|
$ |
(329 |
) |
$ |
(329 |
) | |||
State and local |
— |
|
42 |
|
42 |
| ||||||
Foreign |
165 |
|
34 |
|
199 |
| ||||||
Total |
$ |
165 |
|
$ |
(253 |
) |
$ |
(88 |
) | |||
Year ended December 31, 2012 |
||||||||||||
U.S. federal |
$ |
— |
|
$ |
(1,094 |
) |
$ |
(1,094 |
) | |||
State and local |
— |
|
(176 |
) |
(176 |
) | ||||||
Total |
$ |
— |
|
$ |
(1,270 |
) |
$ |
(1,270 |
) |
Year ended December 31, | |||||||||
Effective Tax Rate - Year-end |
2014 |
2013 |
2012 | ||||||
Income tax benefit at U.S. federal statutory rate |
35.0 |
% |
35.0 |
% |
35.0 |
% | |||
Increase (reduction) in income taxes: |
|||||||||
State income taxes, net of U.S. federal benefit |
1.0 |
% |
(11.2 |
)% |
6.7 |
% | |||
Grants in lieu of tax credits—U.S. federal benefit |
— |
% |
— |
% |
242.6 |
% | |||
Grants in lieu of tax credits—state, net of U.S. federal benefit |
— |
% |
— |
% |
38.0 |
% | |||
Foreign operations |
1.4 |
% |
— |
% |
— |
% | |||
Non-controlling interest |
(16.1 |
)% |
— |
% |
— |
% | |||
Stock-based compensation |
(2.2 |
)% |
— |
% |
— |
% | |||
Change in valuation allowance |
(9.0 |
)% |
— |
% |
— |
% | |||
Other |
(4.6 |
)% |
— |
% |
— |
% | |||
Effective tax (expense) benefit rate |
5.5 |
% |
23.8 |
% |
322.3 |
% |
As of December 31, | ||||||||
(In thousands) |
2014 |
2013 | ||||||
Deferred tax assets: |
||||||||
Net operating losses and tax credit carryforwards |
$ |
53,968 |
|
$ |
6,745 |
| ||
Investment in partnership |
115,861 |
|
— |
| ||||
Deferred revenue |
207 |
|
2,575 |
| ||||
Solar generation facilities |
— |
|
44,218 |
| ||||
Other |
2,078 |
|
— |
| ||||
Total deferred tax assets |
172,114 |
|
53,538 |
| ||||
Valuation allowance |
(167,508 |
) |
— |
| ||||
Net deferred tax assets |
4,606 |
|
53,538 |
| ||||
Deferred tax liabilities: |
||||||||
Solar generation facilities |
7,473 |
|
57,971 |
| ||||
Other |
229 |
|
2,039 |
| ||||
Total deferred tax liabilities |
7,702 |
|
60,010 |
| ||||
Net deferred tax liabilities |
$ |
3,096 |
|
$ |
6,472 |
|
Fair Value As of | ||||||||||||||
(In thousands) |
Balance Sheet Classification |
Notional Amount |
December 31, 2014 |
December 31, 2013 | ||||||||||
Derivatives designated as hedges: |
||||||||||||||
Interest rate swaps |
Accounts payable and other current liabilities |
$ |
349,213 |
|
$ |
(1,925 |
) |
$ |
— |
| ||||
Interest rate swaps |
Accumulated other comprehensive loss |
349,213 |
|
1,925 |
|
— |
| |||||||
Derivatives not designated as hedges: |
||||||||||||||
Interest rate swaps |
Accounts payable and other current liabilities |
$ |
16,861 |
|
$ |
(1,279 |
) |
$ |
— |
| ||||
Foreign exchange contracts |
Accounts payable and other current liabilities |
62,649 |
|
(685 |
) |
— |
| |||||||
Foreign exchange contracts |
Other assets |
52,844 |
|
1,811 |
|
— |
|
(In thousands) |
Loss / (gain) for the Year Ended December 31, | |||||||||
Derivatives not designated as hedges: |
Statement of Operations Classification |
2014 |
2013 | |||||||
Interest rate swaps |
Interest expense, net |
$ |
1,279 |
|
$ |
— |
| |||
Foreign exchange contracts |
Interest expense, net |
685 |
|
— |
| |||||
Foreign exchange contracts |
Gain on foreign currency exchange |
(1,811 |
) |
— |
|
December 31, 2014 | ||||||||||||
(In thousands) |
Gross Amounts Recognized |
Gross Amounts Offset in Consolidated Balance Sheet |
Net Amounts in Consolidated Balance Sheet | |||||||||
Derivative assets: |
||||||||||||
Foreign exchange contracts |
$ |
1,811 |
|
$ |
— |
|
$ |
1,811 |
| |||
Total derivative assets |
$ |
1,811 |
|
$ |
— |
|
$ |
1,811 |
| |||
Derivative liabilities: |
||||||||||||
Interest rate swaps |
$ |
3,204 |
|
$ |
— |
|
$ |
3,204 |
| |||
Foreign exchange contracts |
685 |
|
— |
|
685 |
| ||||||
Total derivative liabilities |
$ |
3,889 |
|
$ |
— |
|
$ |
3,889 |
|
As of December 31, 2014 |
As of December 31, 2013 | |||||||||||||||
(In thousands) |
Carrying Amount |
Fair Value |
Carrying Amount |
Fair Value | ||||||||||||
Liabilities: |
||||||||||||||||
Long-term debt, including current portion |
$ |
1,652,621 |
|
$ |
1,659,883 |
|
$ |
437,280 |
|
$ |
443,067 |
|
(In thousands) |
As of December 31, 2014 |
As of December 31, 2013 | |||||||||||||||||||||||||||||
Assets |
Level 1 |
Level 2 |
Level 3 |
Total |
Level 1 |
Level 2 |
Level 3 |
Total | |||||||||||||||||||||||
Foreign exchange contracts |
$ |
— |
|
$ |
1,811 |
|
$ |
— |
|
$ |
1,811 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
| |||||||
Total Derivative Assets |
$ |
— |
|
$ |
1,811 |
|
$ |
— |
|
$ |
1,811 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
| |||||||
Liabilities |
|||||||||||||||||||||||||||||||
Interest rate swaps |
$ |
— |
|
$ |
3,204 |
|
$ |
— |
|
$ |
3,204 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
| |||||||
Foreign exchange contracts |
— |
|
685 |
|
— |
|
685 |
|
— |
|
— |
|
— |
|
— |
| |||||||||||||||
Total Derivative Liabilities |
$ |
— |
|
$ |
3,889 |
|
$ |
— |
|
$ |
3,889 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Shares: |
Number Outstanding |
Shareholder(s) | |||
Class A common stock |
42,217,984 |
|
* | ||
Class B common stock |
64,526,654 |
|
SunEdison | ||
Class B1 common stock |
5,840,000 |
|
Riverstone | ||
Total Shares |
112,584,638 |
|
|
Number of RSAs Outstanding |
Weighted Average Grant Date Fair Value Per Share | ||||||
Balance at January 1, 2014 |
— |
|
$ |
— |
| ||
Granted |
4,977,586 |
|
$ |
1.11 |
| ||
Forfeited |
(101,019 |
) |
$ |
0.68 |
| ||
Balance at December 31, 2014 |
4,876,567 |
|
$ |
1.12 |
|
Number of RSUs Outstanding |
Weighted Average Grant Date Fair Value Per Share | ||||||
Balance at January 1, 2014 |
— |
|
$ |
— |
| ||
Granted |
825,943 |
|
$ |
27.37 |
| ||
Balance at December 31, 2014 |
825,943 |
|
$ |
27.37 |
|
Number of Options Outstanding |
Weighted Average Exercise Price Per Share |
Aggregate Intrinsic Value (in thousands) | |||||||||
Balance at January 1, 2014 |
— |
|
$ |
— |
|
||||||
Granted |
150,000 |
|
$ |
29.31 |
|
||||||
Balance at December 31, 2014 |
150,000 |
|
$ |
29.31 |
|
$ |
236 |
|
Year ended | |||
December 31, 2014 | |||
Risk-free interest rate |
1.42 |
% | |
Expected volatility |
63 |
% | |
Expected term (in years) |
4 |
| |
Expected dividend yield |
3.7 |
% |
Weighted average number of shares: |
Year Ended December 31, 2014 | ||
Class A common stock - Basic and diluted |
29,602 |
|
Year Ended December 31, 2014 | ||||||||
(In thousands, except per share amounts) |
Basic |
Diluted (1) | ||||||
EPS Numerator: |
||||||||
Net loss attributable to Class A Common stock shareholders |
$ |
(25,617 |
) |
$ |
(25,617 |
) | ||
EPS Denominator: |
||||||||
Weighted-average shares outstanding |
29,602 |
|
29,602 |
| ||||
Loss per share |
$ |
(0.87 |
) |
$ |
(0.87 |
) |
As of December 31, | ||||||||
(in thousands) |
2014 |
2013 | ||||||
Non-controlling interests in Terra LLC: |
||||||||
SunEdison |
$ |
722,342 |
|
$ |
— |
| ||
Riverstone |
65,376 |
|
— |
| ||||
Total non-controlling interests in Terra LLC |
$ |
787,718 |
|
$ |
— |
| ||
Non-controlling interest in projects: |
||||||||
Nellis |
$ |
1,394 |
|
$ |
— |
| ||
CPI |
18,277 |
|
12,778 |
| ||||
Regulus |
127,804 |
|
— |
| ||||
HES * |
787 |
|
— |
| ||||
Mt. Signal |
88,597 |
|
— |
| ||||
North Carolina Portfolio |
19,271 |
|
— |
| ||||
DG 2015 Portfolio 2 |
681 |
|
— |
| ||||
Total non-controlling interests in projects |
$ |
256,811 |
|
$ |
12,778 |
| ||
Total non-controlling interests |
$ |
1,044,529 |
|
$ |
12,778 |
|
(in thousands) |
HES * |
CD DG Portfolio * |
Total | |||||||||
As of December 31, 2013 |
$ |
— |
|
$ |
— |
|
$ |
— |
| |||
Consolidation of redeemable non-controlling interests |
7,738 |
|
16,600 |
|
24,338 |
| ||||||
As of December 31, 2014 |
$ |
7,738 |
|
$ |
16,600 |
|
$ |
24,338 |
|
* |
Amounts represent the preliminary values based on initial purchase price allocation. Amounts are subject to change when fair values at the acquisition date are determined. |
Contractual Cash Obligations (in thousands) |
Rent | |||
2015 |
$ |
12,999 |
| |
2016 |
11,710 |
| ||
2017 |
11,000 |
| ||
2018 |
11,203 |
| ||
2019 |
11,454 |
| ||
Thereafter |
108,528 |
| ||
Total |
$ |
166,894 |
|
• |
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. |
Year Ended |
Year Ended |
Year Ended | ||||||||||||||||||||||||||||
December 31, 2014 |
December 31, 2013 |
December 31, 2012 | ||||||||||||||||||||||||||||
(In thousands) |
Solar Energy |
Corporate |
Total |
Solar Energy |
Corporate |
Total |
Solar Energy |
Corporate |
Total | |||||||||||||||||||||
Operating revenues, net |
$ |
125,864 |
|
$ |
— |
|
$ |
125,864 |
|
$ |
17,469 |
|
$ |
— |
|
$ |
17,469 |
|
$ |
15,694 |
|
$ |
— |
|
$ |
15,694 |
| |||
Depreciation, accretion and amortization |
40,509 |
|
— |
|
40,509 |
|
4,961 |
|
— |
|
4,961 |
|
4,267 |
|
— |
|
4,267 |
| ||||||||||||
Other operating costs and expenses |
33,076 |
|
46,165 |
|
79,241 |
|
7,382 |
|
— |
|
7,382 |
|
6,119 |
|
— |
|
6,119 |
| ||||||||||||
Interest expense, net |
54,246 |
|
30,172 |
|
84,418 |
|
6,267 |
|
— |
|
6,267 |
|
5,702 |
|
— |
|
5,702 |
| ||||||||||||
Other non-operating expense (income) |
(6,209 |
) |
13,019 |
|
6,810 |
|
(771 |
) |
— |
|
(771 |
) |
— |
|
— |
|
— |
| ||||||||||||
Income tax benefit (1) |
— |
|
(4,689 |
) |
(4,689 |
) |
— |
|
(88 |
) |
(88 |
) |
— |
|
(1,270 |
) |
(1,270 |
) | ||||||||||||
Net (loss) income |
$ |
4,242 |
|
$ |
(84,667 |
) |
$ |
(80,425 |
) |
$ |
(370 |
) |
$ |
88 |
|
$ |
(282 |
) |
$ |
(394 |
) |
$ |
1,270 |
|
$ |
876 |
| |||
Cash Flows |
||||||||||||||||||||||||||||||
Capital expenditures |
$ |
1,052,871 |
|
$ |
— |
|
$ |
1,052,871 |
|
$ |
205,361 |
|
$ |
— |
|
$ |
205,361 |
|
$ |
2,274 |
|
$ |
— |
|
$ |
2,274 |
| |||
Balance Sheet |
||||||||||||||||||||||||||||||
Total assets (2) |
$ |
3,072,250 |
|
$ |
514,170 |
|
$ |
3,586,420 |
|
$ |
566,877 |
|
$ |
— |
|
$ |
566,877 |
|
$ |
158,955 |
|
$ |
— |
|
$ |
158,955 |
|
Year Ended | |||||||||||||||
December 31, 2014 |
December 31, 2013 |
December 31, 2012 | |||||||||||||
(In thousands, except for percentages) |
Amount |
Percentage |
Amount |
Percentage |
Amount |
Percentage | |||||||||
San Diego Gas & Electric |
$ |
39,574 |
|
31.4% |
** |
|
** |
** |
|
** | |||||
Compania Minera del Pacifico |
23,130 |
|
18.4 |
** |
|
** |
** |
|
** | ||||||
Customer A |
* |
|
* |
$ |
4,196 |
|
24.0% |
$ |
4,207 |
|
26.8% | ||||
Customer B |
* |
|
* |
1,761 |
|
10.1 |
1,831 |
|
11.7 | ||||||
Customer C |
* |
|
* |
1,726 |
|
10.0 |
1,760 |
|
11.2 |
Year Ended | ||||||||||
(In thousands) |
December 31, 2014 |
December 31, 2013 |
December 31, 2012 | |||||||
United States and Puerto Rico |
$ |
86,210 |
|
$ |
17,469 |
|
$ |
15,694 |
| |
Chile |
23,130 |
|
— |
|
— |
| ||||
United Kingdom |
15,890 |
|
— |
|
— |
| ||||
Canada |
634 |
|
— |
|
— |
| ||||
Total Operating Revenues, net |
$ |
125,864 |
|
$ |
17,469 |
|
$ |
15,694 |
|
As of December 31, 2014 |
As of December 31, 2013 | |||||||
(In thousands) |
||||||||
United States and Puerto Rico |
$ |
2,077,508 |
|
$ |
250,927 |
| ||
Chile |
189,221 |
|
167,313 |
| ||||
United Kingdom |
522,909 |
|
10,804 |
| ||||
Canada |
126,939 |
|
912 |
| ||||
Total long-lived assets, net |
|
2,916,577 |
|
429,956 |
| |||
Current assets |
593,705 |
|
106,358 |
| ||||
Other non-current assets |
76,138 |
|
|
30,563 |
| |||
Total assets |
$ |
3,586,420 |
|
$ |
566,877 |
|
(In thousands) |
Foreign Currency Translation Adjustments |
Hedging Activities |
Accumulated Other Comprehensive Loss | |||||||||
Balance, December 31, 2013 |
$ |
— |
|
$ |
— |
|
$ |
— |
| |||
Other comprehensive loss before reclassifications |
(3,541 |
) |
(1,925 |
) |
(5,466 |
) | ||||||
Amounts reclassified from accumulated other comprehensive loss |
— |
|
— |
|
— |
| ||||||
Net other comprehensive loss |
(3,541 |
) |
(1,925 |
) |
(5,466 |
) | ||||||
Less: other comprehensive loss attributable to non-controlling interests |
(2,392 |
) |
(1,437 |
) |
(3,829 |
) | ||||||
Balance, December 31, 2014 |
$ |
(1,149 |
) |
$ |
(488 |
) |
$ |
(1,637 |
) |
(In thousands) |
Before Tax |
Tax Effect |
Net of Tax | |||||||||
Foreign currency translation adjustments |
$ |
(3,541 |
) |
$ |
— |
|
$ |
(3,541 |
) | |||
Unrealized loss on hedging instruments |
(1,925 |
) |
— |
|
(1,925 |
) | ||||||
Other comprehensive loss |
$ |
(5,466 |
) |
$ |
— |
|
$ |
(5,466 |
) | |||
Less: other comprehensive loss attributable to non-controlling interests, net of tax |
(3,829 |
) | ||||||||||
Other comprehensive loss attributable to TerraForm Power, Inc. Class A stockholders |
$ |
(1,637 |
) |
(in thousands, except per share data) |
Q1 |
Q2 |
Q3 |
Q4 | ||||||||||||
Operating revenues, net |
$ |
8,109 |
|
$ |
21,968 |
|
$ |
53,221 |
|
$ |
42,566 |
| ||||
Operating income |
2,244 |
|
8,236 |
|
20,491 |
|
(24,857 |
) | ||||||||
Interest expense, net |
6,580 |
|
24,171 |
|
22,466 |
|
31,201 |
| ||||||||
Net loss |
(3,374 |
) |
(13,143 |
) |
(1,521 |
) |
(62,387 |
) | ||||||||
Net loss attributable to TerraForm Power, Inc. Class A common stockholders subsequent to initial public offering |
N/A |
|
N/A |
|
(4,014 |
) |
(21,603 |
) | ||||||||
Other Comprehensive Income |
— |
|
573 |
|
(3,648 |
) |
(2,391 |
) | ||||||||
Weighted average Class A common shares outstanding - basic and diluted |
N/A |
|
N/A |
|
27,066 |
|
31,505 |
| ||||||||
Net earnings (loss) per weighted average Class A common share - basic and diluted |
N/A |
|
N/A |
|
$ |
(0.15 |
) |
$ |
(0.69 |
) |
(in thousands, except per share data) |
Q1 |
Q2 |
Q3 |
Q4 | ||||||||||||
Operating revenues, net |
$ |
2,975 |
|
$ |
4,663 |
|
$ |
5,401 |
|
$ |
4,430 |
| ||||
Operating income |
432 |
|
2,033 |
|
2,114 |
|
547 |
| ||||||||
Interest expense, net |
1,374 |
|
1,378 |
|
1,963 |
|
1,552 |
| ||||||||
Net income (loss) |
(491 |
) |
341 |
|
74 |
|
(206 |
) |