Long-term Debt | Long-term Debt This footnote should be read in conjunction with the complete description under Note 9, Long-term Debt , to the Company's audited consolidated financial statements for the year ended December 31, 2014, included in the Company's Prospectus dated June 22, 2015. Long-term debt consisted of the following: September 30, 2015 December 31, 2014 September 30, 2015, interest rate % (a) (In millions, except rates) Senior Notes, due 2024 $ 500 $ 500 5.375 Long-term debt - affiliate, due 2019 337 337 3.580 Long-term debt - affiliate, due 2020 281 — 3.325 NRG Yield LLC and NRG Yield Operating LLC Revolving Credit Facility, due 2019 (b) 92 — L+2.75 Project-level debt: Alta Wind I, lease financing arrangement, due 2034 255 261 7.015 Alta Wind II, lease financing arrangement, due 2034 200 205 5.696 Alta Wind III, lease financing arrangement, due 2034 208 212 6.067 Alta Wind IV, lease financing arrangement, due 2034 135 138 5.938 Alta Wind V, lease financing arrangement, due 2035 215 220 6.071 Alta Wind X, due 2021 — 300 L+2.00 Alta Wind XI, due 2021 — 191 L+2.00 Alta Realty Investments, due 2031 33 34 7.00 Alta Wind Asset Management, due 2031 19 20 L+2.375 NRG West Holdings LLC, due 2023 (El Segundo Energy Center) 485 506 L+1.625 - L+2.25 NRG Marsh Landing LLC, due 2017 and 2023 431 464 L+1.75 - L+1.875 Walnut Creek Energy, due 2023 363 391 L+1.625 Tapestry Wind LLC, due 2021 184 192 L+1.625 NRG Solar Alpine LLC, due 2014 and 2022 156 163 L+1.75 NRG Energy Center Minneapolis LLC, due 2017 and 2025 110 121 5.95 -7.25 Laredo Ridge LLC, due 2028 105 108 L+1.875 NRG Solar Borrego LLC, due 2025 and 2038 73 75 L+ 2.50/5.65 South Trent Wind LLC, due 2020 62 65 L+1.625 NRG Solar Avra Valley LLC, due 2031 61 63 L+1.75 TA High Desert LLC, due 2020 and 2032 54 55 L+2.50/5.15 WCEP Holdings LLC, due 2023 46 46 L+3.00 NRG Roadrunner LLC, due 2031 40 42 L+1.625 NRG Solar Kansas South LLC, due 2031 34 35 L+2.00 NRG Solar Blythe LLC, due 2028 22 22 L+1.625 PFMG and related subsidiaries financing agreement, due 2030 30 31 6.00 NRG Energy Center Princeton LLC, due 2017 1 1 5.95 Subtotal project-level debt: 3,322 3,961 Total debt 4,532 4,798 Less current maturities 224 214 Total long-term debt $ 4,308 $ 4,584 (a) As of September 30, 2015 , L+ equals 3 month LIBOR plus x%, except for the NRG Marsh Landing term loan, Walnut Creek term loan, and the Revolving Credit Facility where L+ equals 1 month LIBOR plus x% and Kansas South where L+ equals 6 month LIBOR plus x%. (b) Applicable rate is determined by the Borrower Leverage Ratio, as defined in the credit agreement. The financing arrangements listed above contain certain covenants, including financial covenants that the Company is required to comply with during the term of the respective arrangement. As of September 30, 2015 , the Company was in compliance with all of the required covenants. The discussion below lists changes to or additions of long-term debt for the nine months ended September 30, 2015 . NRG Yield LLC and NRG Yield Operating LLC Revolving Credit Facility On June 26, 2015, the Company amended the revolving credit facility to, among other things, increase the availability from $450 million to $495 million . As of September 30, 2015 , $92 million of borrowings and $25 million of letters of credit were outstanding. On November 3, 2015, the Company borrowed $209 million from the revolving credit facility to finance the acquisition of the November 2015 Drop Down Assets as discussed in Note 3 , Business Acquisitions . Yield, Inc. 2020 Convertible Notes and Related Intercompany Note On June 29, 2015, Yield, Inc. closed on its offering of $287.5 million aggregate principal amount of 3.25% Convertible Notes due 2020, or the 2020 Convertible Notes. The 2020 Convertible Notes are convertible, under certain circumstances, into Yield, Inc.’s Class C common stock, cash or a combination thereof at an initial conversion price of $27.50 per Class C common share, which is equivalent to an initial conversion rate of approximately 36.3636 shares of Class C common stock per $1,000 principal amount of 2020 Convertible Notes. The Company and Yield Operating LLC provided a guarantee to Yield, Inc. with respect to the 2020 Convertible Notes. In addition, Yield Operating LLC and Yield, Inc. entered into an intercompany borrowing arrangement, under which Yield Operating LLC received $281 million of the proceeds of the 2020 Convertible Notes. The intercompany note bears interest at a rate of 3.325% and matures in 2020. Alta Wind X and Alta Wind XI Financing Due 2021 On June 30, 2015, Yield Operating LLC entered into a tax equity financing arrangement through which it has received $119 million in net proceeds, as described in Note 5 , Variable Interest Entities, or VIEs . These proceeds, as well as proceeds obtained from the June 29, 2015, Yield, Inc. common stock issuance, as described in Note 1, Nature of Business , and 2020 Convertible Notes issuance, as described above, were utilized to repay all of the outstanding project indebtedness associated with the Alta Wind X and Alta Wind XI wind facilities. The Company also settled interest rate swaps associated with the project level debt for the Alta Wind X and Alta Wind XI wind facilities at a value of $17 million . Laredo Ridge On July 27, 2010, Laredo Ridge entered into a credit agreement with a group of lenders for a $75 million construction loan that was convertible to a term loan upon completion of the project, a $53 million cash grant loan and a $3 million working capital loan facility. The project met the conditions to convert to a term loan on March 18, 2011. The cash grant loan was repaid in July 2011 with proceeds of the cash grant. The credit agreement also included a letter of credit facility on behalf of Laredo Ridge of up to $9 million . Laredo Ridge paid a fee equal to the applicable margin on issued letters of credit. On December 17, 2014, Laredo Ridge amended the credit agreement to increase its term loan borrowings by an additional $41 million to reduce the working capital facility by $1 million , to increase the letter of credit facility by $1 million and to reduce the related interest rate to LIBOR plus 1.875% through December 31, 2018, LIBOR plus 2.125% from January 1, 2019 through December 31, 2023 and LIBOR plus 2.375% from January 1, 2024 through the maturity date. The fee on the working capital facility was reduced to 0.5% . In addition, the maturity date was extended to December 31, 2028. The proceeds were utilized to make a distribution of $33 million to NRG Wind LLC, an NRG subsidiary, with the remaining $8 million utilized to fund the costs of the amendment. As of September 30, 2015 , $105 million was outstanding under the term loan, nothing was outstanding under the working capital facility, and $10 million of letters of credit in support of the project were issued. In connection with the amendment to the credit agreement, Laredo Ridge entered into a series of fixed for floating interest rate swaps that would fix the interest rate for a minimum of 75% of the outstanding notional amount. Laredo Ridge pays its counterparty the equivalent of a 2.31% fixed interest payment on a predetermined notional value, and quarterly, Laredo Ridge will receive the equivalent of a floating interest payment based on the three-month LIBOR calculated on the same notional value through December 31, 2028. All interest rate swap payments by Laredo Ridge and its counterparties are made quarterly and LIBOR is determined in advance of each interest period. Tapestry Wind LLC On December 21, 2011, Tapestry Wind LLC entered into a credit agreement with a group of lenders for a $214 million term loan and an $8 million working capital loan facility. The term loan matures in December 2021. It is secured by Tapestry Wind LLC's interest in the Buffalo Bear, Taloga, and Pinnacle projects. The term loan amortizes based upon a predetermined schedule. The working capital facility is available to fund the operating needs of Tapestry Wind LLC. The commitment fee on this facility is 0.75% . The credit agreement also includes a letter of credit facility on behalf of Tapestry Wind LLC of up to $20 million . Tapestry Wind LLC pays a fee equal to the applicable margin on issued letters of credit. Under the terms of the agreement, Tapestry Wind LLC entered into a series of fixed for floating interest rate swaps that would fix the interest rate for a minimum of 90% of the outstanding notional amount. Tapestry Wind LLC will pay its counterparty the equivalent of a 2.21% fixed interest payment on a predetermined notional value, and quarterly, Tapestry Wind LLC will receive the equivalent of a floating interest payment based on a three-month LIBOR calculated on the same notional value through December 21, 2021. All interest rate swap payments by Tapestry Wind LLC and its counterparties are made quarterly and the LIBOR is determined in advance of each interest period. Swaps became effective December 30, 2011, and amortize in proportion to the term loan. At the same time Tapestry Wind LLC entered into a series of forward starting swaps to hedge the refinancing risk. The swaps are effective December 21, 2021. Tapestry Wind LLC will pay its counterparty the equivalent of a 3.57% fixed interest payment on a predetermined notional value, and quarterly, Tapestry Wind LLC will receive the equivalent of a floating interest payment based on a three-month LIBOR calculated on the same notional value through December 21, 2029. On November 12, 2014, Tapestry Wind LLC amended the credit agreement to reduce the related interest rate to LIBOR plus 1.625% through December 20, 2018, and LIBOR plus 1.75% from December 21, 2018, through the maturity date. As of September 30, 2015 , $184 million was outstanding under the term loan, nothing was outstanding under the working capital facility and $20 million of letters of credit in support of the project were issued. Walnut Creek On July 27, 2011, Walnut Creek entered into a credit agreement with a group of lenders for a $442 million construction loan that was convertible to a term loan upon completion of the project, and a $5 million working capital loan facility. The project met the conditions to convert to a term loan on June 21, 2013, and matures in May 2023. The term loan amortizes based upon a predetermined schedule. The working capital facility is available to fund the operating needs of Walnut Creek. The commitment fee on this facility is 0.625% . The Walnut Creek agreement also includes a letter of credit facility on behalf of Walnut Creek of up to $117 million . Walnut Creek pays a fee equal to the applicable margin on issued letters of credit. Under the terms of the agreement, Walnut Creek entered into a series of fixed for floating interest rate swaps that would fix the interest rate for a minimum of 90% of the outstanding notional amount. Walnut Creek will pay its counterparty the equivalent of a 3.54% fixed interest payment on a predetermined notional value, and quarterly, Walnut Creek will receive the equivalent of a floating interest payment based on a three-month LIBOR calculated on the same notional value through May 31, 2023. All interest rate swap payments by Walnut Creek and its counterparties are made quarterly and the LIBOR is determined in advance of each interest period. Swaps became effective June 28, 2013, and amortize in proportion to the term loan. On October 21, 2014, Walnut Creek amended the credit agreement to increase its term loan borrowings by an additional $10 million , and to reduce the related interest rate to LIBOR plus 1.625% through September 30, 2018, LIBOR plus 1.75% from October 1, 2018, through September 30, 2022, and LIBOR plus 1.875% from October 1, 2022, through the maturity date. The fee on the working capital facility was reduced to 0.5% . The proceeds were utilized to make a distribution of $6 million to WCEP Holdings LLC with the remaining $4 million utilized to fund the costs of the amendment. In addition, Walnut Creek entered into an additional interest rate swap to maintain the minimum of 90% of the outstanding notional amount being swapped to a fixed interest rate. Walnut Creek pays its counterparty the equivalent of a 4.0025% fixed interest payment on a predetermined notional value, and quarterly, Walnut Creek receives the equivalent of a floating interest payment based on a three-month LIBOR calculated on the same notional value through July 31, 2020. All interest rate swap payments by Walnut Creek and its counterparties are made quarterly and the LIBOR is determined in advance of each interest period. Swaps became effective June 28, 2013, and amortize in proportion to the term loan. As of September 30, 2015 , $363 million was outstanding under the term loan, nothing was outstanding under the working capital facility, and $49 million of letters of credit were issued. WCEP Holdings LLC On July 27, 2011, WCEP Holdings LLC entered into a credit agreement with a group of lenders for a $53 million construction loan that was convertible to a term loan upon completion of the Walnut Creek project. The Walnut Creek project met the conditions for the WCEP Holdings LLC loan to convert to a term loan on June 21, 2013. The term loan has an interest rate of LIBOR plus an applicable margin of 4% . The term loan matures in May 2023. The term loan amortizes based upon a predetermined schedule. Under the terms of the credit agreement, WCEP Holdings LLC entered into two fixed for floating interest rate swaps that would fix the interest rate for a minimum of 90% of the outstanding notional amount. WCEP Holdings LLC will pay its counterparty the equivalent of a 4% fixed interest payment on a predetermined notional value, and quarterly, WCEP Holdings LLC will receive the equivalent of a floating interest payment based on a three-month LIBOR calculated on the same notional value through May 31, 2023. All interest rate swap payments by WCEP Holdings LLC and its counterparties are made quarterly and the LIBOR is determined in advance of each interest period. Swaps became effective June 28, 2013, and amortize in proportion to the term loan. On October 21, 2014, WCEP Holdings LLC amended the credit agreement to reduce the related interest rate to LIBOR plus 3% . The proceeds of the distribution from Walnut Creek were utilized to make an optional repayment of $6 million on the term loan. In addition, WCEP Holdings LLC partially terminated the interest rate agreements so that at least 90% and no more than 100% of the aggregate principal amount of the loans then outstanding will be subject to interest rate agreements. As of September 30, 2015 , $46 million was outstanding under the term loan. Avenal Solar Holdings LLC On March 18, 2015, Avenal Solar Holdings LLC, one of the Company's equity method investments, amended its credit agreement to increase its borrowings by $43 million and to reduce the related interest rate from 6 month LIBOR plus an applicable margin of 2.25% to 6 month LIBOR plus 1.75% from March 18, 2015, through March 17, 2022, 6 month LIBOR plus 2.00% from March 18, 2022, through March 17, 2027, and 6 month LIBOR plus 2.25% from March 18, 2027, through the maturity date. As a result of the credit agreement amendment, the Company received net proceeds of $20 million after fees from its 49.95% ownership in Avenal. Effective September 30, 2015, the Company increased its ownership to 50% by acquiring an additional 0.05% membership interest in Avenal. NRG West Holdings LLC On May 29, 2015, NRG West Holdings LLC amended its financing agreement to increase borrowings under the Tranche A facility by $5 million and to reduce the related interest rate to LIBOR plus an applicable margin of 1.625% from May 29, 2015, to August 31, 2017, LIBOR plus an applicable margin of 1.75% from September 1, 2017, to August 31, 2020, and LIBOR plus 1.875% from September 1, 2020, through the maturity date; to reduce the Tranche B loan interest rate to LIBOR plus an applicable margin of 2.250% from May 29, 2015, to August 31, 2017, LIBOR plus 2.375% from September 1, 2017, to August 31, 2020, and LIBOR plus an applicable margin of 2.50% from September 1, 2020, through the maturity date and to reduce the working capital facility by $9 million . The proceeds of the increased borrowing were used to pay costs associated with the refinancing. Further, the amendment resulted in a $7 million loss on debt extinguishment. |