TerraForm Power Operating in waiver agreement with requisite lenders
On November 25 TerraForm Power Operating, a subsidiary of TerraForm Power, entered into a waiver agreement with requisite lenders under the Credit and Guaranty Agreement dated as of January 28, 2015. The Waiver Agreement extended the deadline for delivery of certain financial information with respect to the third quarter of 2016 to January 1, 2017 and waived Terra Operating LLC's obligation to comply with the debt service coverage ratio and leverage ratio financial covenants of the Revolver with respect to such quarter and the requirement to certify compliance with those covenants. If Terra Operating LLC failed to deliver the financial information with respect to the third quarter of 2016, its financial statements and accompanying audit report with respect to fiscal year 2015 and certain other related information by January 1, 2017, the waiver would expire and an event of default would occur under the Revolver. Failure to deliver certain summary financial information with respect to the third quarter of 2016 by December 21, 2016 would also result in an event of default under the Revolver. In connection with the Waiver Agreement, Terra Operating LLC made a prepayment of the revolving loans outstanding under the Revolver in an aggregate amount equal to $30,000,000 and permanently reduced the revolving commitments and borrowing capacity under the Revolver by that amount.