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Short-Term and Long-Term Borrowings | 12 Months Ended
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Dec. 31, 2024
Debt Disclosure [Abstract] |
Short-Term and Long-Term Borrowings | Short-Term and Long-Term Borrowings The following is a summary of our outstanding short- and long-term borrowings by borrower, OTC or OTP, as of December 31, 2024 and 2023:
| 2024 |  | 2023
(in thousands) | OTC |  | OTP |  | Total |  | OTC |  | OTP |  | Total
Short-Term Debt | $ | — |  |  | $ | 69,615 |  |  | $ | 69,615 |  |  | $ | — |  |  | $ | 81,422 |  |  | $ | 81,422 |
Long-Term Debt | 79,900 |  |  | 863,834 |  |  | 943,734 |  |  | 79,849 |  |  | 744,210 |  |  | 824,059 |
Total | $ | 79,900 |  |  | $ | 933,449 |  |  | $ | 1,013,349 |  |  | $ | 79,849 |  |  | $ | 825,632 |  |  | $ | 905,481 |
Short-Term Debt The following is a summary of our lines of credit as of December 31, 2024 and 2023:
|  |  | 2024 |  | 2023
(in thousands) | Line Limit |  | Amount Outstanding |  | Letters of Credit |  | Amount Available |  | Amount Available
OTC Credit Agreement | $ | 170,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 170,000 |  |  | $ | 170,000 |
OTP Credit Agreement | 220,000 |  |  | 69,615 |  |  | 8,772 |  |  | 141,613 |  |  | 79,446 |
Total | $ | 390,000 |  |  | $ | 69,615 |  |  | $ | 8,772 |  |  | $ | 311,613 |  |  | $ | 249,446 |
On December 11, 2024, OTC entered into a Sixth Amended and Restated Credit Agreement (the OTC Credit Agreement) and OTP entered into a Fifth Amended and Restated Credit Agreement (the OTP Credit Agreement), in each case amending and restating the previously existing credit agreements, to extend the maturity date of each credit facility and adjust the maximum debt to total capitalization covenant. The OTP Credit Agreement was also amended to increase the maximum borrowing capacity. The OTC agreement provides for a $170.0 million unsecured revolving line of credit and the OTP agreement provides for a $220.0 million unsecured revolving line of credit to support operations, fund capital expenditures, refinance certain indebtedness and provide for the issuance of letters of credit in an aggregate amount not to exceed $40.0 million under the OTC Credit Agreement and $50.0 million under the OTP Credit Agreement. Each credit facility includes an accordion provision allowing the borrower to increase the borrowing capacity under the facility, subject to certain conditions, up to $290.0 million and $300.0 million under the OTC Credit Agreement and OTP Credit Agreement, respectively. Borrowings under each credit facility are subject to a variable rate of interest on outstanding balances and a commitment fee is charged based on the average unused amount available to be drawn under the respective facility. The variable rate of interest to be charged is based on a benchmark interest rate, either SOFR or a Base Rate, as defined in the credit agreements, selected by the borrower at the time of an advance, subject to the conditions of each agreement, plus an applicable credit spread. The credit spread ranges from zero to 2.00%, depending on the benchmark interest rate selected, and is subject to adjustment based on the credit ratings of the relevant borrower. The weighted-average interest rate on all outstanding borrowings as of December 31, 2024 and 2023 was 5.61% and 6.70%. Each credit facility contains a number of restrictions on the borrower, including restrictions on the ability to merge, sell assets, make investments, create or incur liens on assets, guarantee the obligations of any other party and engage in transactions with related parties. The agreements also require the borrower to maintain various financial covenants, as further described below. Each credit facility includes a cross-default provision whereby an event of default of other outstanding indebtedness will trigger an event of default under the agreement. Each credit facility expires on December 11, 2029. Long-Term Debt The following is a summary of outstanding long-term debt by borrower as of December 31, 2024 and 2023:
|  |  |  |  |  |  |  | (in thousands)
Entity |  | Debt Instrument |  | Rate |  | Maturity |  | 2024 |  | 2023
OTC |  | Guaranteed Senior Notes |  | 3.55% |  | 12/15/26 |  | $ | 80,000 |  |  | $ | 80,000 |
OTP |  | Series 2007C Senior Unsecured Notes |  | 6.37% |  | 08/02/27 |  | 42,000 |  |  | 42,000 |
OTP |  | Series 2013A Senior Unsecured Notes |  | 4.68% |  | 02/27/29 |  | 60,000 |  |  | 60,000 |
OTP |  | Series 2019A Senior Unsecured Notes |  | 3.07% |  | 10/10/29 |  | 10,000 |  |  | 10,000 |
OTP |  | Series 2020A Senior Unsecured Notes |  | 3.22% |  | 02/25/30 |  | 10,000 |  |  | 10,000 |
OTP |  | Series 2020B Senior Unsecured Notes |  | 3.22% |  | 08/20/30 |  | 40,000 |  |  | 40,000 |
OTP |  | Series 2021A Senior Unsecured Notes |  | 2.74% |  | 11/29/31 |  | 40,000 |  |  | 40,000 |
OTP |  | Series 2024A Senior Unsecured Notes |  | 5.48% |  | 04/01/34 |  | 60,000 |  |  | — |
OTP |  | Series 2007D Senior Unsecured Notes |  | 6.47% |  | 08/20/37 |  | 50,000 |  |  | 50,000 |
OTP |  | Series 2019B Senior Unsecured Notes |  | 3.52% |  | 10/10/39 |  | 26,000 |  |  | 26,000 |
OTP |  | Series 2020C Senior Unsecured Notes |  | 3.62% |  | 02/25/40 |  | 10,000 |  |  | 10,000 |
OTP |  | Series 2013B Senior Unsecured Notes |  | 5.47% |  | 02/27/44 |  | 90,000 |  |  | 90,000 |
OTP |  | Series 2018A Senior Unsecured Notes |  | 4.07% |  | 02/07/48 |  | 100,000 |  |  | 100,000 |
OTP |  | Series 2019C Senior Unsecured Notes |  | 3.82% |  | 10/10/49 |  | 64,000 |  |  | 64,000 |
OTP |  | Series 2020D Senior Unsecured Notes |  | 3.92% |  | 02/25/50 |  | 15,000 |  |  | 15,000 |
OTP |  | Series 2021B Senior Unsecured Notes |  | 3.69% |  | 11/29/51 |  | 100,000 |  |  | 100,000 |
OTP |  | Series 2022A Senior Unsecured Notes |  | 3.77% |  | 05/20/52 |  | 90,000 |  |  | 90,000 |
OTP |  | Series 2024B Senior Unsecured Notes |  | 5.77% |  | 04/01/54 |  | 60,000 |  |  | — |
Total |  |  |  |  |  |  |  | 947,000 |  |  | 827,000 |
Less: | Unamortized Long-Term Debt Issuance Costs |  |  |  |  |  | 3,266 |  |  | 2,941 |
Total Long-Term Debt Net of Unamortized Debt Issuance Costs |  |  |  | $ | 943,734 |  |  | $ | 824,059 |
On March 28, 2024, OTP entered into a Note Purchase Agreement pursuant to which OTP issued, in a private placement transaction, $120.0 million of senior unsecured notes consisting of (a) $60.0 million of 5.48% Series 2024A Senior Unsecured Notes due April 1, 2034, and (b) $60.0 million of 5.77% Series 2024B Senior Unsecured Notes due April 1, 2054. Per the terms of the agreement, OTP may prepay all or any part of the notes (in an amount not less than 10% of the aggregate principal amount of the notes then outstanding in the case of a partial prepayment) at 100% of the principal amount so prepaid, together with unpaid accrued interest and a make-whole amount, as defined in the agreement; provided that no default or event of default exists under the agreement. Any prepayment of the Series 2024A Notes then outstanding on or after January 1, 2034, or the Series 2024B Notes then outstanding on or after October 1, 2053, will be made without any make-whole amount. Consistent with other of our borrowings, the agreement contains a number of restrictions on the business of OTP, including restrictions on OTP’s ability to merge, sell substantially all assets, create or incur liens on assets, guarantee the obligations of any other party, and engage in certain transactions with affiliates. Our guaranteed and unsecured notes require the borrower to maintain various financial covenants, as further described below. These notes provide for prepayment options allowing for a full or partial prepayment at 100% of the principal amount so prepaid, together with unpaid accrued interest and a make-whole amount, as defined. These notes also include restrictions on the borrower, including its ability to merge, sell assets, create or incur liens on assets, guarantee the obligations of any other party and engage in transactions with related parties. The notes include a cross-default provision whereby an event of default of other outstanding indebtedness will trigger an event of default under the note. Aggregate maturities of long-term debt obligations on December 31, 2024 for each of the next five years are as follows:
(in thousands) | 2025 |  | 2026 |  | 2027 |  | 2028 |  | 2029
Debt Maturities | $ | — |  |  | $ | 80,000 |  |  | $ | 42,000 |  |  | $ | — |  |  | $ | 70,000 |
Financial Covenants Certain of OTC's and OTP's short-term and long-term debt agreements require the borrower, whether OTC or OTP, to maintain certain financial covenants, including a maximum debt to total capitalization of either 0.60 to 1.00 or 0.65 to 1.00, depending on the debt agreement, a minimum interest and dividend coverage ratio of 1.50 to 1.00, and a maximum level of priority indebtedness. As of December 31, 2024, OTC and OTP were in compliance with these financial covenants. Guaranties OTC's obligations under the terms of its Guaranteed Senior Notes are unconditionally and irrevocably guaranteed by its subsidiaries, Varistar Corporation, BTD Manufacturing, Inc., Northern Pipe Products, Inc. and Vinyltech Corporation.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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