v3.25.2
Long-term Debt (Tables)
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
The following are summarized terms of the Senior Unsecured Notes as of June 30, 2025:
Outstanding Principal AmountMaturity DateStated Interest RateInterest Payment DatesRedemption Terms Modification Date
(in millions)
2026 Notes600 
(1)
June 15, 20263.375 %June 15 and December 15
March 15, 2026 (2)
2027 Notes450 
(1)(4)
June 15, 20278.000 %June 15 and December 15
March 15, 2027 (3)
2030 Notes375 
(5)
September 15, 20303.750 %
February 15 and August 15
N/A
2031 Notes
600 
(6)
January 15, 20316.150 %
January 15 and
July 15
December 15, 2030 (7)
2034 Notes
1,000 
(8)
July 1, 20346.375 %
July 1 and
January 1
N/A
2035 Notes
400 
(9)
July 15, 20356.750 %
January 15 and
July 15
April 15, 2035 (7)
(1)See above for discussion of the partial repurchases of the outstanding notes which occurred in the second quarter of 2025.
(2)Prior to this date, we may redeem, at our option, some or all of the 2026 Notes for the outstanding principal amount plus the applicable “make-whole” premium as defined in the indenture governing the 2026 Notes plus accrued and unpaid interest through the redemption date. In addition, prior to this date, we may redeem up to 40% of the Senior Unsecured Notes using the proceeds of certain equity offerings at a price equal to par plus the coupon percentage of the principal amount thereof, plus accrued but unpaid interest, if any, to, but excluding, the applicable redemption date. On, or subsequent to, this date we may redeem the 2026 Notes at par, plus accrued and unpaid interest though the redemption date.
(3)Prior to this date, we may redeem, at our option, some or all of the 2027 Notes for the outstanding principal amount plus the applicable “make-whole” premium as defined in the indenture governing the 2027 Notes plus accrued and unpaid interest through the redemption date. In addition, prior to this date, we may redeem up to 40% of the Senior Unsecured Notes using the proceeds of certain equity offerings at a price equal to par plus the coupon percentage of the principal amount thereof, plus accrued but unpaid interest, if any, to, but excluding, the applicable redemption date. On, or subsequent to, this date we may redeem the 2027 Notes in whole or in part at a price equal to 100% of the outstanding principal amount, plus accrued and unpaid interest though the redemption date.
(4)In January 2024 in a follow-on offering we issued $200 million principal amount of 2027 Notes for net proceeds of $204 million, equivalent to a yield to maturity of 7.08% for the new issuance.
(5)We issued the $375 million aggregate principal amount of the 2030 Notes for total proceeds of $371 million ($367 million net of issuance costs) at an effective interest rate of 3.87%. We may redeem the 2030 Notes in whole or in part at redemption prices defined in the indenture governing the 2030 Notes plus accrued and unpaid interest though the redemption date.
(6)We issued the $600 million aggregate principal amount of the 2031 notes for total proceeds of $598 million ($593 million net of issuance costs) at an effective interest rate of 6.218%.
(7)Prior to this date, we may redeem, at our option, some or all of the applicable notes for the outstanding principal amount plus the applicable “make-whole” premium as defined in the indenture governing the applicable notes, plus accrued and unpaid interest through the redemption date. On, or subsequent to, this date, we may redeem the applicable notes in whole or in part at a price equal to 100% of the outstanding principal amount, plus accrued and unpaid interest through the redemption date.
(8)In 2024, we issued $700 million principal amount of 2034 Notes, which bear interest at a rate of 6.375%. The notes were issued for gross proceeds of $695 million, resulting in a yield to maturity of 6.476%. In December 2024, we issued an additional $300 million principal amount of 2034 Notes for gross proceeds of $300 million.
(9)We issued the $400 million aggregate principal amount of the 2035 notes for total proceeds of $398 million ($395 million net of issuance costs) at an effective interest rate of 6.815%.
The following table presents a summary of the components of the Senior Unsecured Notes:
 June 30, 2025December 31, 2024
(in millions)
Principal$3,425 $3,125 
Accrued interest40 41 
Unamortized premium (discount)(9)(4)
Less: Unamortized financing costs(25)(23)
Carrying value of Senior Unsecured Notes$3,431 $3,139 
The following are summarized terms of the Convertible Notes as of June 30, 2025:
Outstanding Principal AmountMaturity DateStated Interest RateInterest Payment DatesConversion/Exchange RatioConversion/Exchange PriceIssuable Shares
Dividend Threshold Amount (1)
(in millions)(in millions)
2025 Exchangeable Senior Notes$— 
(2)
May 1,
2025		0.000 %N/A17.8724$55.95—$0.375
2028 Exchangeable Senior Notes403 August 15,
2028		3.750 %February 15 and August 1536.9842$27.0414.9$0.395
(1)The conversion or exchange ratio is subject to adjustment for dividends declared above these amounts per share per quarter and certain other events that may be dilutive to the holder.
(2)In the second quarter of 2025, we used $220 million in proceeds from our unsecured revolving line of credit to repay the 2025 Exchangeable Senior Notes inclusive of its accrued interest which was paid at maturity in the form of an accreted premium.
Schedule of Interest Expense For Each Debt Instrument
The following table presents interest expense related to the Senior Unsecured Notes:
Three months ended June 30,Six months ended June 30,
2025202420252024
(in millions)
Interest Expense
45 34 89 68 
The following table presents interest expense related to our Convertible Notes:
Three months ended June 30,Six months ended June 30,
2025202420252024
(in millions)
Interest Expense
$5 $6 $11 $13 
Schedule of Components of Convertible Notes
The following table presents a summary of the components of our Convertible Notes:

 June 30, 2025December 31, 2024
(in millions)
Principal$403 $603 
Accrued interest6 6 
Premium— 18 
Less: Unamortized financing costs(6)(7)
Carrying value of Convertible Notes
$403 $620 
Schedule of Material Terms for Capped Calls The material terms of the Capped Calls are as follows:
(in millions except per share data)
Aggregate cost of capped calls $38 
Initial strike price per share$27.14 
Initial cap price per share$43.42 
Shares of our common stock covered by the capped calls 14.8
Expiration dateAugust 15, 2028
Schedule of Minimum Maturities of Debt
Amounts which were due under the term loan facility as of June 30, 2025 are as follows:
Future maturities
(in millions)
July 1, 2025 to December 31, 2025$6 
202612 
2027223 
Total241 
Less: Unamortized Financing Costs(3)
Carrying Value$238 
Amounts which were due under the Secured Term Loan Facility as of June 30, 2025 are as follows:
Future maturities
(in millions)
July 1, 2025 to December 31, 2025$6 
202612 
202711 
2028133 
Total162 
Less: Unamortized Financing Costs(2)
Carrying Value$160 
The stated minimum maturities of non-recourse debt as of June 30, 2025, were as follows:

Future minimum maturities
(in millions)
July 1, 2025 to December 31, 2025$6 
202611 
202714 
20286 
202910 
20307 
Thereafter76 
Total minimum maturities$130 
Unamortized financing costs(4)
Total non-recourse debt$126 
Schedule of Outstanding Non-Recourse Asset-Backed Debt
We have outstanding the following asset-backed non-recourse debt and bank loans:

 Outstanding Balance
as of		Anticipated
Balance at
Maturity		Carrying Value of Assets Pledged as of
 June 30, 2025December 31, 2024Interest
Rate		Maturity DateJune 30, 2025December 31, 2024Description
of Assets Pledged
(dollars in millions)
HASI Harmony Issuer93 96 6.78%July 2043— 266 266 Equity method investments
Other non-recourse
debt (1)
37 40 
3.15% - 7.23%
2026 to 203217 39 41 Receivables
Unamortized financing costs(4)(4)
Non-recourse debt (2)
$126 $132 
(1)Other non-recourse debt consists of various debt agreements used to finance certain of our receivables. Scheduled debt service payment requirements are equal to or less than the cash flows received from the underlying receivables.
(2)The total collateral pledged against our non-recourse debt was $305 million and $307 million as of June 30, 2025 and December 31, 2024, respectively. These amounts include $16 million and $20 million of restricted cash pledged for debt service payments as of June 30, 2025 and December 31, 2024, respectively.
Schedule of Interest Rate Swaps
We have entered into certain derivatives designed to hedge interest rate risk with certain of our floating-rate interest exposures, including floating-rate loans from our Term Loan Facility, unsecured revolving credit facility, Secured Term Loan and the anticipated refinancings of certain of our Senior Unsecured Notes. From time to time we may also enter into forward-starting interest rate swaps to hedge interest rate risks associated with incremental debt we expect to issue.
We have entered into the following derivative transactions that are designated as cash flow hedges as of June 30, 2025:
Instrument typeHedged RateNotional ValueFair Value as ofTerm of derivative and forecasted transactions
IndexJune 30, 2025December 31, 2024
$ in millions
Interest rate swap1 month SOFR3.79%$200 $(4)$3 March 2023 to March 2033
Interest rate swapOvernight SOFR2.98%150 
(1)
5 24 June 2026 to June 2033
Interest rate swapOvernight SOFR3.09%600 16 32 June 2026 to June 2033
Interest rate collar1 month SOFR
3.70% - 4.00%
(2)
250 — — May 2023 to May 2026
Interest rate swapsOvernight SOFR
4.39% to 4.42%
(3)
165 (7)(3)September 2023 to June 2033
Interest rate swapOvernight SOFR3.72 %3754 11 June 2027 to June 2037
$1,740 $14 67
(1)    In the second quarter of 2025, we partially settled $250 million notional of this hedge, which previously had a notional value of $400 million, for cash proceeds of approximately $11 million. The associated benefit in AOCI will be released into net income as a benefit to interest expense over the period of the forecasted transaction.
(2)    Interest rate collar consists of a purchased interest rate cap of 4.00% and a written interest rate floor of 3.70%.
(3)     Consists of three interest rate swaps with identical maturities and effective dates.
Schedule of Changes in AOCI The below table shows the changes in our AOCI balance related to our interest rate derivatives designated and qualifying as effective cash flow hedges:
(Amounts in millions)
Beginning Balance - December 31, 2023
$1 
Changes in fair value95 
Amounts released into interest expense(10)
Ending Balance - December 31, 2024
$86 
Changes in fair value(35)
Amounts released into interest expense(2)
Ending Balance - June 30, 2025
$49 
Schedule of Benefit (Expense) Included in Interest Expense The below table shows the benefit (expense) included in interest expense as a result of our hedging activities for the three and six months ended June 30, 2025 and 2024, respectively.
Three months ended June 30,Six months ended June 30,
2025202420252024
(in thousands)
Interest expense
$79,746 $59,530 $144,424 $121,403 
Benefit (expense) included in interest expense due to hedging activities873 2,808 1,824 5,615