XML 43 R8.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Long-Term Debt, Credit Arrangements and Guarantees | 6 Months Ended
--- | ---
Jun. 30, 2013
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, 2013, June 30, 2012 and December 31, 2012 are shown below ($ Millions):
|  | June 30, |  |  | December 31, |
|  | 2013 |  |  | 2012 |  |  | 2012 |
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, Inc.: |  |  |  |  |  |  |  |  |  |  |  |
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 State Gas Transmission, Inc.: |  |  |  |  |  |  |  |  |  |  |  |
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 |  |  | 2.6 |  |  |  | 3.1 |  |  |  | 2.8 |
Total Long-Term Debt |  |  | 287.6 |  |  |  | 288.1 |  |  |  | 287.8 |
Less: Current Portion |  |  | 0.6 |  |  |  | 0.5 |  |  |  | 0.5 |
Total Long-term Debt, Less Current Portion |  | $ | 287.0 |  |  | $ | 287.6 |  |  | $ | 287.3 |
Fair Value of Long-Term 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. If there were an active market for the Company’s debt securities, the fair value of the Company’s long-term debt would be 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 is estimated using Level 2 inputs (valuations based on quoted prices available in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are directly observable, and inputs derived principally from market data.) In estimating the fair value of the Company’s long-term debt, the assumed market yield reflects the Moody’s Baa Utility Bond Average Yield. Costs, including prepayment costs, associated with the early settlement of long-term debt are not taken into consideration in determining fair value.
(Millions) |  | June 30, |  |  | December 31, |
|  | 2013 |  |  | 2012 |  |  | 2012 |
Estimated Fair Value of Long-Term Debt |  | $ | 333.2 |  |  | $ | 341.6 |  |  | $ | 349.7 |
Credit Arrangements Unitil has an unsecured revolving credit facility with a group of banks that extends to October 8, 2013. The borrowing limit under the credit facility is currently $60 million, which the Company believes will be sufficient until its expected renewal. The following table details the borrowing limits, amounts outstanding and amounts available under the revolving credit facility as of June 30, 2013, June 30, 2012 and December 31, 2012:
|  | Revolving Credit Facility (millions) |
|  | June 30, |  |  | December 31, |
|  | 2013 |  |  | 2012 |  |  | 2012 |
Limit |  | $ | 60.0 |  |  | $ | 115.0 |  |  | $ | 60.0 |
Outstanding |  | $ | 24.5 |  |  | $ | 5.0 |  |  | $ | 49.4 |
Available |  | $ | 35.5 |  |  | $ | 110.0 |  |  | $ | 10.6 |
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, 2013, June 30, 2012 and December 31, 2012, 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 were obligations of $7.2 million, $8.0 million and $10.7 million outstanding at June 30, 2013, June 30, 2012 and December 31, 2012, respectively, related to these asset management agreements. The amount of natural gas inventory released in June 2013 and payable in July 2013 is $0.1 million and is recorded in Accounts Payable at June 30, 2013. There were no amounts of natural gas inventory released in June 2012 and payable in July 2012 that were recorded in Accounts Payable at June 30, 2012. The amount of natural gas inventory released in December 2012 and payable in January 2013 is $2.1 million and is recorded in Accounts Payable at December 31, 2012. Guarantees The Company also provides limited guarantees on certain energy and natural gas storage management contracts entered into by the distribution utilities. The Company’s policy is to limit the duration of these guarantees. As of June 30, 2013, there were approximately $13.5 million of guarantees outstanding and the longest term guarantee extends through February 2014. The Company also guarantees the payment of principal, interest and other amounts payable on the notes issued by Unitil Realty and Granite State. As of June 30, 2013, the principal amount outstanding for the 8% Unitil Realty notes was $2.6 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 State notes due 2018. As of June 30, 2013, the principal amount outstanding for the 7.15% Granite State notes was $10.0 million.

X
- 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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration