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Long-Term Debt

6 Months Ended

Jun. 30, 2012

13.

Long-Term Debt

Our outstanding long-term debt is shown below:


	June 30,			December 31,
	2012			2011
(in thousands)
FPU secured first mortgage bonds ^(A):
9.57% bond, due May 1, 2018	$	5,442		$	6,348
10.03% bond, due May 1, 2018		2,993			3,492
9.08% bond, due June 1, 2022		7,960			7,958
Uncollateralized senior notes:
7.83% note, due January 1, 2015		6,000			6,000
6.64% note, due October 31, 2017		16,363			16,363
5.50% note, due October 12, 2020		18,000			18,000
5.93% note, due October 31, 2023		30,000			30,000
5.68% note, due June 30, 2026		29,000			29,000
Convertible debentures:
8.25% due March 1, 2014		1,038			1,134
Promissory note		155			186

Total long-term debt		116,951			118,481
Less: current maturities		(8,196	)		(8,196	)

Total long-term debt, net of current maturities	$	108,755		$	110,285

(A)

FPU secured first mortgage bonds are guaranteed by Chesapeake.

On June 23, 2011, we issued $29.0 million of 5.68 percent unsecured senior notes to Metropolitan Life Insurance Company and New England Life Insurance Company, pursuant to an agreement we entered into with them on June 29, 2010. These notes require annual principal payments of $2.9 million beginning in the sixth year after the issuance. We used the proceeds to permanently finance the redemption of the 6.85 percent and 4.90 percent series of FPU first mortgage bonds. These redemptions occurred in January 2010 and were previously financed by Chesapeake’s short-term loan facilities. Under the same agreement, we may issue an additional $7.0 million of unsecured senior notes prior to May 3, 2013, at a rate ranging from 5.28 percent to 6.43 percent based on the timing of the issuance. These notes, if issued, will have similar covenants and default provisions as the senior notes issued in June 2011.