Exelon 2015 Annual Report Download - page 354

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
higher borrowing base and Generation is able to obtain additional commitments from lenders. Calculations of the borrowing base are impacted by
projected production and commodity prices. The facility was amended and extended through January 2019. The agreement bears interest at a
variable rate equal to LIBOR plus 2.50% and is payable monthly. As of December 31, 2015, $68 million was outstanding under the facility.
Sacramento PV Energy. In July 2011, a subsidiary of Generation entered into a 19-year, $41 million nonrecourse note to finance a 30MW
solar facility in Sacramento, California. The note is scheduled to mature on December 31, 2030. The note bears interest at a variable rate equal to
LIBOR plus 2.25% and is payable quarterly. As of December 31, 2015, $33 million was outstanding. The subsidiary also executed interest rate
swaps with an initial notional value of $30 million at an interest rate of 3.57% in order to convert the variable interest payments to fixed payments
on 75% of the $41 million facility amount, as required by the debt covenants. See Note 13—Derivative Financial Instruments for additional
information regarding interest rate swaps.
Holyoke Solar Cooperative. In October 2011, Generation entered into a 20-year, $11 million solar loan agreement related to a solar
construction project in Holyoke, Massachusetts. The agreement is scheduled to mature on December 2031. The agreement bears interest at a
fixed rate of 5.25% annually with interest payable monthly. As of December 31, 2015, $10 million was outstanding.
Antelope Valley Solar Ranch One. In December 2011, the DOE Loan Programs Office issued a guarantee for up to $646 million for a
nonrecourse loan from the Federal Financing Bank to support the financing of the construction of the Antelope Valley facility. The project became
fully operational in the first half of 2014. The loan will mature on January 5, 2037. Interest rates on the loan were fixed upon each advance at a
spread of 37.5 basis points above U.S. Treasuries of comparable maturity. The advances were completed as of December 31, 2015 and the
outstanding loan balance will bear interest at an average blended interest rate of 2.82%. As of December 31, 2015, $574 million was outstanding.
In addition, Generation has issued letters of credit to support its equity investment in the project. As of December 31, 2015, Generation had $69
million in letters of credit outstanding related to the project.
Constellation Solar Horizons. In September 2012, a subsidiary of Generation entered into an 18-year $38 million nonrecourse note to
recover capital used to build a 16MW solar facility in Emmitsburg, Maryland. The note is scheduled to mature on September 7, 2030. The note
bears interest at a variable rate equal to LIBOR plus 2.25% with interest payable quarterly. As of December 31, 2015, $32 million was outstanding.
The subsidiary also executed interest rate swaps for an initial notional amount of $29 million at an interest rate of 2.03% in order to convert the
variable interest payments to fixed payments on 75% of the $38 million facility amount, as required by the debt covenants. See Note 13—
Derivative Financial Instruments for additional information regarding interest rate swaps.
Continental Wind. In September 2013, Continental Wind, LLC (Continental Wind), an indirect subsidiary of Exelon and Generation,
completed the issuance and sale of $613 million senior secured notes. Continental Wind owns and operates a portfolio of wind farms in Idaho,
Kansas, Michigan, Oregon, New Mexico and Texas with a total net capacity of 667MW. The net proceeds were distributed to Generation for its
general business purposes. The notes are scheduled to mature on February 28, 2033. The notes bear interest at a fixed rate of 6.00% with interest
payable semi-annually. As of December 31, 2015, $572 million was outstanding.
In addition, Continental Wind entered into a $131 million letter of credit facility and $10 million working capital revolver facility. Continental
Wind has issued letters of credit to satisfy certain of its credit support and security obligations. As of December 31, 2015, the Continental Wind
letter of credit facility had $99 million in letters of credit outstanding related to the project.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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