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Long-Term Debt, Credit Arrangements And Guarantees
 6 Months Ended
Jun. 30, 2011
Long-Term Debt, Credit Arrangements And Guarantees  
Long-Term Debt, Credit Arrangements And Guarantees

NOTE 4 – LONG-TERM DEBT, CREDIT ARRANGEMENTS AND GUARANTEES

Long-Term Debt

Details on long-term debt at June 30, 2011, June 30, 2010 and December 31, 2010 are shown below ($ Millions):

 

     June 30,      December 31,  
     2011      2010      2010  

Unitil Corporation Senior Notes:

         

6.33% Notes, Due May 1, 2022

    $ 20.0       $ 20.0       $ 20.0   

Unitil Energy Systems, Inc.:

         

First Mortgage Bonds:

         

5.24% Series, Due March 2, 2020

      15.0         15.0         15.0   

8.49% Series, Due October 14, 2024

      15.0         15.0         15.0   

6.96% Series, Due September 1, 2028

      20.0         20.0         20.0   

8.00% Series, Due May 1, 2031

      15.0         15.0         15.0   

6.32% Series, Due September 15, 2036

      15.0         15.0         15.0   

Fitchburg Gas and Electric Light Company:

         

Long-Term Notes:

         

6.75% Notes, Due November 30, 2023

      19.0         19.0         19.0   

7.37% Notes, Due January 15, 2029

      12.0         12.0         12.0   

7.98% Notes, Due June 1, 2031

      14.0         14.0         14.0   

6.79% Notes, Due October 15, 2025

      10.0         10.0         10.0   

5.90% Notes, Due December 15, 2030

      15.0         15.0         15.0   

Northern Utilities Senior Notes:

         

6.95% Senior Notes, Due December 3, 2018

      30.0         30.0         30.0   

5.29% Senior Notes, Due March 2, 2020

      25.0         25.0         25.0   

7.72% Senior Notes, Due December 3, 2038

      50.0         50.0         50.0   

Granite Senior Notes:

         

7.15% Senior Notes, Due December 15, 2018

      10.0         10.0         10.0   

Unitil Realty Corp.:

         

Senior Secured Notes:

         

8.00% Notes, Due Through August 1, 2017

      3.6         4.0         3.8   
                          

Total Long-Term Debt

      288.6         289.0         288.8   

Less: Current Portion

      0.5         0.4         0.5   
                          

Total Long-term Debt, Less Current Portion

    $ 288.1       $ 288.6       $ 288.3   
                          

The fair value of the Company's long-term debt is estimated based on the quoted market prices for the same or similar issues, or on the current rates offered to the Company for debt of the same remaining maturities. The fair value of the Company's long-term debt at June 30, 2011 is estimated to be approximately $323 million, before considering any costs, including prepayment costs, to market the Company's debt. Currently, the Company believes that there is no active market in the Company's debt securities, which have all been sold through private placements.

 

Credit Arrangements

At June 30, 2011, June 30, 2010 and December 31, 2010, the Company had $51.3 million, $24.6 million and $66.8 million, respectively, in short-term debt outstanding through bank borrowings under its revolving credit facility which extends through October 8, 2013. The borrowing limit under the revolving credit facility is $80.0 million. The total amount of credit available under the Company's revolving credit facility at June 30, 2011, June 30, 2010 and December 31, 2010 was $28.7 million, $55.4 million and $13.2 million, respectively. The revolving credit facility contains customary terms and conditions for credit facilities of this type, including, without limitation, covenants restricting the Company's ability to incur liens, merge or consolidate with another entity or change its line of business. The revolving credit agreement also contains a covenant restricting the Company's ability to permit funded debt to exceed 65% of capitalization at the end of each fiscal quarter. As of June 30, 2011, the Company was in compliance with the financial covenants contained in the revolving credit agreement.

Northern Utilities enters into asset management agreements under which Northern Utilities releases certain natural gas pipeline and storage assets, resells the natural gas storage inventory to an asset manager and subsequently repurchases the inventory over the course of the natural gas heating season at the same price at which it sold the natural gas inventory to the asset manager. There was $6.6 million, $8.5 million and $11.7 million outstanding at June 30, 2011, June 30, 2010 and December 31, 2010, respectively, related to these asset management agreements. The amount of natural gas inventory released in December 2010, which was payable in January 2011, is $3.9 million and recorded in Accounts Payable at December 31, 2010. There were no amounts of natural gas inventory released in June 2011 and payable in July 2011 that were recorded in Accounts Payable at June 30, 2011.There were no amounts of natural gas inventory released in June 2010 and payable in July 2010 that were recorded in Accounts Payable at June 30, 2010.

Guarantees

The Company also provides limited guarantees on certain energy and natural gas storage management contracts entered into by the three distribution utilities. The Company's policy is to limit these guarantees to two years or less. As of June 30, 2011 there are $32.3 million of guarantees outstanding and the longest of these guarantees extends through December 31, 2012.

The Company also guarantees the payment of principal, interest and other amounts payable on the notes issued by Unitil Realty and Granite. As of June 30, 2011, the principal amount outstanding for the 8% Unitil Realty notes was $3.6 million. On December 15, 2008, the Company entered into a guarantee for the payment of principal, interest and other amounts payable on the $10.0 million Granite notes due 2018. As of June 30, 2011, the principal amount outstanding for the 7.15% Granite notes was $10.0 million.