v3.26.1
Long-term Debt (Tables)
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
The following are summarized terms of the Senior Notes as of March 31, 2026:
Outstanding Principal AmountMaturity DateStated Interest RateInterest Payment DatesRedemption Terms Modification Date
(in millions)
2026 Senior Notes
600 
(1)
June 15, 20263.375 %June 15 and December 15N/A
2027 Senior Notes
— 
(2)
June 15, 20278.000 %June 15 and December 15
N/A
2030 Senior Notes
375 
(3)
September 15, 20303.750 %
February 15 and August 15
N/A
2031 Senior Notes
600 
(4)
January 15, 20316.150 %
January 15 and
July 15
December 15, 2030 (5)
2034 Senior Notes
1,000 
(6)
July 1, 20346.375 %
July 1 and
January 1
N/A
2035 Senior Notes
400 
(7)
July 15, 20356.750 %
January 15 and
July 15
April 15, 2035 (5)
2036 Senior Notes
400 
(8)
March 15, 20366.000 %
March 15 and September 15
December 15, 2035 (5)
(1)We may redeem the 2026 Senior Notes at par, plus accrued and unpaid interest though the redemption date.
(2)In the first quarter of 2026 we used a portion proceeds from the 2036 Senior Notes and the November 2056 Junior Subordinated Notes to redeem the 2027 Senior Notes. We paid a redemption premium of $18 million, and expensed capitalized debt issuance costs of $1 million associated with the redemption.
(3)We issued the $375 million aggregate principal amount of the 2030 Senior 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 Senior Notes in whole or in part at redemption prices defined in the indenture governing the 2030 Senior Notes plus accrued and unpaid interest though the redemption date.
(4)We issued the $600 million aggregate principal amount of the 2031 Senior Notes for total proceeds of $598 million ($593 million net of issuance costs) at an effective interest rate of 6.218%.
(5)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.
(6)We issued $700 million principal amount of 2034 Senior 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 a follow-on offering, we issued an additional $300 million principal amount of 2034 Senior Notes for gross proceeds of $300 million.
(7)We issued the $400 million aggregate principal amount of the 2035 Senior Notes for total proceeds of $398 million ($395 million net of issuance costs) at an effective interest rate of 6.815%.
(8)In 2026, we issued the $400 million aggregate principal amount of the 2036 Senior Notes for total proceeds of $399 million ($397 million net of issuance costs) at an effective rate of 6.025%.

The following table presents a summary of the components of the Senior Notes:
 March 31, 2026December 31, 2025
(in millions)
Principal$3,375 $3,425 
Accrued interest39 73 
Unamortized premium (discount)(11)(9)
Less: Unamortized financing costs(23)(23)
Carrying value of Senior Notes
$3,380 $3,466 
The following are summarized terms of the Junior Subordinated Notes as of March 31, 2026:
Outstanding Principal AmountMaturity DateStated Interest RateInterest Payment DatesRedemption Terms Modification Date
(in millions)
June 2056 Junior Subordinated Notes
500 

June 1, 20568.000 %
(1)
June 1 and December 1
March 3, 2031 (2)
November 2056 Junior Subordinated Notes
600 November 15, 20567.125 %
(3)
May 15 and November 15
August 18, 2031 (2)
(1)The June 2056 Junior Subordinated Notes bear interest at a rate of 8.000% per year until June 1, 2031. After that date, the interest rate resets every five years to the then-current five-year Treasury rate plus a spread of 4.301%, provided that the interest rate will not be reset below 8.000%.
(2)On or after this date, we may redeem, at our option, the applicable notes in whole or in part at a price equal to 100% of the principal amount being redeemed, plus accrued and unpaid interest.
(3)The November 2056 Junior Subordinated Notes bear interest at a rate of 7.125% per year until November 15, 2031. After that date, the interest rate resets every five years to the then-current five-year Treasury rate plus a spread of 3.478%, provided that the interest rate will not be reset below 7.125%

The following table presents a summary of the components of our Junior Subordinated Notes:
 March 31, 2026December 31, 2025
(in millions)
Principal$1,100 $500 
Accrued interest18 5 
Less: Unamortized financing costs(15)(7)
Carrying value of Junior Subordinated Notes$1,103 $498 
The following are summarized terms of the Convertible Notes as of March 31, 2026:
Outstanding Principal AmountMaturity DateStated Interest RateInterest Payment DatesConversion/Exchange RatioConversion/Exchange PriceIssuable Shares
Dividend Threshold Amount (1)
(in millions)(in millions)
2025 Exchangeable Senior Notes$— 
(2)
May 1,
2025		0.000 %N/A—$——$—
2028 Exchangeable Senior Notes403 August 15,
2028		3.750 %February 15 and August 1537.077126.9714.9$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 2025, we used $220 million in proceeds from our unsecured revolving line of credit to repay the 2025 Exchangeable Senior Notes inclusive of 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 Notes:
Three months ended March 31,
20262025
(in millions)
Interest Expense
49 44 
The following table presents interest expense related to the Junior Subordinated Notes:
Three months ended March 31,
20262025
(in millions)
Interest Expense
14 — 
The following table presents interest expense related to our Convertible Notes:
Three months ended March 31,
20262025
(in millions)
Interest Expense
$4 $6 
Schedule of Components of Convertible Notes
The following table presents a summary of the components of our Convertible Notes:

 March 31, 2026December 31, 2025
(in millions)
Principal$403 $403 
Accrued interest1 5 
Less: Unamortized financing costs(4)(5)
Carrying value of Convertible Notes
$400 $403 
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 Maturities of Debt Amounts which were due under the Unsecured Term Loan Facility as of March 31, 2026 are as follows:
Future maturities
(in millions)
April 1, 2026 to December 31, 2026$8 
2027223 
Total231 
Less: Unamortized Financing Costs(2)
Carrying Value$229 
Amounts which were due under the Secured Term Loan Facility as of March 31, 2026 are as follows:
Future maturities
(in millions)
April 1, 2026 to December 31, 2026$10 
202711 
2028134 
Total155 
Less: Unamortized Financing Costs(2)
Carrying Value$153 
The stated minimum maturities of non-recourse debt as of March 31, 2026, were as follows:

Future minimum maturities
(in millions)
April 1, 2026 to December 31, 2026$6 
20276 
20286 
20296 
20308 
20316 
Thereafter83 
Total minimum maturities$121 
Unamortized financing costs(3)
Total non-recourse debt$118 
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
 March 31, 2026December 31, 2025Interest
Rate		Maturity DateMarch 31, 2026December 31, 2025Description
of Assets Pledged
(dollars in millions)
HASI Harmony Issuer88 93 6.78%July 2043— 268 274 Equity method investments
Other non-recourse
debt (1)
33 35 
3.15% - 7.23%
2026 to 2042— 35 37 Receivables
Unamortized financing costs(3)(3)
Non-recourse debt (2)
$118 $125 
(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 $303 million and $311 million as of March 31, 2026 and December 31, 2025, respectively. These amounts include $26 million and $35 million of restricted cash pledged for debt service payments as of March 31, 2026 and December 31, 2025, respectively.
Schedule of Interest Rate Swaps We have entered into the following derivative transactions that are designated as cash flow hedges as of March 31, 2026:
Instrument typeHedged RateNotional ValueFair Value as ofTerm of derivative and forecasted transactions
IndexMarch 31, 2026December 31, 2025
$ in millions
Interest rate swap1 month SOFR3.79%$200 $(2)$(3)March 2023 to March 2033
Interest rate swapOvernight SOFR3.09%600 24 20 June 2026 to June 2033
Interest rate collar1 month SOFR
3.70% - 4.00%
(1)
250 — — May 2023 to May 2026
Interest rate swapsOvernight SOFR
4.39% to 4.42%
(2)
156 (5)(6)September 2023 to June 2033
Interest rate swapOvernight SOFR3.72 %
(3)
375— 8 June 2027 to June 2037
Interest rate swap
Overnight SOFR3.48%
(2)
751 — December 2026 to December 2033
Interest rate swapOvernight SOFR3.51%301 — March 2027 to March 2034
$1,686 $19 19
(1)    Interest rate collar consists of a purchased interest rate cap of 4.00% and a written interest rate floor of 3.70%.
(2)     Consists of multiple interest rate swaps with identical maturities and effective dates.
(3)     In the first quarter of 2026, we settled this swap for cash proceeds of approximately $2 million. The associated benefit in AOCI will be released into net income as a benefit to interest expense over the period of the forecasted transactions.
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, 2024
$86 
Changes in fair value(23)
Amounts released into interest expense(4)
Ending Balance - December 31, 2025
$59 
Changes in fair value2 
Amounts released into interest expense(1)
Ending Balance - March 31, 2026
$60 
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 months ended March 31, 2026 and 2025, respectively.
Three months ended March 31,
20262025
(in thousands)
Benefit (expense) included in interest expense due to hedging activities647 951