Quarterly report pursuant to Section 13 or 15(d)

Debt and Financing Lease Liabilities

v3.23.1
Debt and Financing Lease Liabilities
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Debt and Financing Lease Liabilities DEBT AND FINANCING LEASE LIABILITIES
Our debt and financing lease liabilities are comprised of the following:
March 31, 2023 December 31, 2022
Senior secured revolving credit facility (1)
$ 182,900  $ 182,900 
Senior secured term loans 295,000  295,000 
Non-recourse construction revolvers (4)
47,090  45,391 
Non-recourse term loans (4)
296,880  255,403 
Non-recourse long-term financing facilities (2)
121,455  120,923 
Non-recourse financing lease liabilities (3)
16,031  16,060 
Acquired debt (5)
3,951  — 
Total debt and financing lease liabilities 963,307  915,677 
Less: current maturities 313,459  331,479 
Less: unamortized discount and debt issuance costs 18,172  15,563 
Long-term debt and financing lease liabilities, net of current portion, unamortized discount and debt issuance costs $ 631,676  $ 568,635 
(1) At March 31, 2023, funds of $4,345 were available for borrowing under this facility.
(2) These facilities are accounted for as failed sale leasebacks and are classified as long-term financing facilities. See Note 7 for additional disclosures.
(3) Financing lease liabilities are sale-leaseback arrangements under previous guidance. See Note 7 for additional disclosures.
(4) Most of these agreements are now using the Secured Overnight Financing Rate (“SOFR”) as the primary reference rate used to calculate interest.
(5) Debt acquired in connection with the acquisition of Enerqos. See Note 4 for additional information.

Senior Secured Credit Facility - Revolver and Term Loans
On March 17, 2023, we entered into amendment number two to the fifth amended and restated senior secured credit facility with five banks to increase the total funded debt to EBITDA covenant ratio from a maximum of 3.50 to 4.00 for the quarters ending March 31, 2023 and June 30, 2023, and 3.5 thereafter.
Non-recourse Term Shelf Notes, 5.99%, due December 31, 2047
On March 28, 2023, three senior secured notes (“Shelf Notes”) due December 31, 2047 were issued under our shelf facility, with gross proceeds of $22,625. The Shelf Notes bear interest at a fixed rate of 5.99% per annum and are payable quarterly commencing June 30, 2023. At closing, we incurred $282 in lender fees and debt issuance costs. In connection with the Shelf Notes, we recorded a derivative instrument for make-whole provisions with an initial value of $3,123, which was recorded as a debt discount.
Non-recourse Variable Rate Term Loan, 6.38%, due March 28, 2028
On March 30, 2023, we entered into an amended and restated financing agreement (“Amended Agreement”) with the existing bank that extended the maturity date of the loan from March 30, 2023 to March 28, 2028. The Amended Agreement consists of a term loan of $14,084, an incremental term loan of $359 and a letter of credit of $899. The term loan bears interest at a variable rate, with interest payments due in quarterly installments. The rate at March 31, 2023 was 6.38%. The remaining principal balance and unpaid interest is due March 28, 2028. As a result of this refinancing, we entered into a new interest rate swap contract with an initial notional amount of $14,084 and termination date of December 31, 2040. See Note 12 Derivative Instruments and Hedging Activities for additional information on this new swap contract.
Non-recourse Fixed Rate Note, 6.50%, due October 31, 2037
On March 31, 2023, we drew down the remaining availability of $30,000 under this facility. As of March 31, 2023, $114,919 was outstanding under this facility, net of unamortized debt discount and issuance costs.
Non-recourse Construction Credit Facility
On March 31, 2023, we entered into a credit agreement for a construction facility with a total commitment of CAD$100,000 which has an availability period of five years. As of March 31, 2023, no funds were drawn under this facility. During the availability period the loans will bear interest at a fixed rate of 2.00% and during the operating period the rate will range from 1.00% to 3.00% as set forth in the agreement. The maturity date is the earlier of twenty years from project commencement date or one year prior to the termination date of the last remaining energy services agreements.
Non-recourse Term Loans
See Note 19 Subsequent Events for information about financings that occurred after March 31, 2023.