EFTA01366603.pdf

Amendment ::4 Page 174 of 868 Quantitative and qualitative disclosures about market risk We ate exposed to several market risks ill OUI normal busses. actwees Market ink is the potential loss that troy result from market changes associated well cis business or weh an existng or forecasted financial a ccourodity Sensation The types of market roles we are exposed to are interest late risk, foreign currency risk Nudity nsk and cede risk Interest ate risk As et December 31, 2014, our lengterm debt was al variade interest rates A hypothetical increase Of decrease in our variable interest rates by 1% world have rod a 3573 thousand and 5941 thousand net effect on our predecessor's earn ngs for the years ended December 31, 2013 and 2014, respectsery We expect to enter no the Revolver upon completion of this offering We expect that borrowings under the Revolver wit be at variable interest rates Alleough we intend to use hedging strategists to mitigate Olt exposure to interest rate fluctuations we may rot hedge ail of our tiered rate risk and to the extent we enter into If110f0St rate hedges, our hedges may not necessarily have the same duration as the wooded indebtedness at exposure to interest rate fluctuations will depend on the amount d indebtedness that bears interest at variable rates the line at which the interest rate is adiusted Ire amount of the adruslment our ability to prepay or ION-Once variable rate indebtedness when fixed rate debt mat ues and needs to be refinanced and hedging staters we may use to reduce the impact of any Increases n rates FontIgn currency Ask Ping the years ended December 31, 2013 and 2014, al of our revenues were generated in Indian Rupee. Malaysian Ringo t, South African Rand and Thai Bahl and were translated nto the U S dollar, which is or reacting currency We expect the PPAs, operatrig and maintenance agreements, financing arrangements and dher cortractual arrangements rerldng ton nee' portfoSo well be denomnated in Chinese Yuan Rennsnia, Brazilian Reel, Indian Rupee, Malaysian Ringgit. Souh African Raid, Peruvian Nuevo Sd aril Thai Battled in the fittre we expect such arrangements may also be denominated in other currencies We expect to use derivative financial instrumenbs such as forward exchange contracts and purchases of currency options to Minima our net exposure to currency Suctuabons in 2016, we expect 31% d our revenue (and 31% of CAFD) to tier denominated in U.S. dollars, and 53% of our revenue (and 37%o CAFD) to be dented torn PPM indexed to inflation We plan to hedge all foregmcurrency CAFD on a rolling three-year basis 166 http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058131 CONFIDENTIAL SONY GM_00204315 EFTA01366603