XML 25 R11.htm IDEA: XBRL DOCUMENT
v3.8.0.1

DEBT AND FINANCING ARRANGEMENTS | 9 Months Ended
--- | ---
Sep. 30, 2017
DEBT AND FINANCING ARRANGEMENTS | NOTE 4 – DEBT AND FINANCING ARRANGEMENTS Details on long-term debt at September 30, 2017, September 30, 2016 and December 31, 2016 are shown below:
($ millions) |  | September 30, |  |  | December 31, |
|  | 2017 |  |  | 2016 |  |  | 2016 |
Unitil Corporation Senior Notes: |  |  |  |  |  |  |  |  |  |  |  |
6.33% Notes, Due May 1, 2022 |  | $ | 20.0 |  |  | $ | 20.0 |  |  | $ | 20.0 |
3.70% Notes, Due August 1, 2026 |  |  | 30.0 |  |  |  | 30.0 |  |  |  | 30.0 |
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 |  |  | 9.0 |  |  |  | 12.0 |  |  |  | 9.0 |
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 |  |  | 9.5 |  |  |  | 11.4 |  |  |  | 9.5 |
6.79% Notes, Due October 15, 2025 |  |  | 10.0 |  |  |  | 10.0 |  |  |  | 10.0 |
7.37% Notes, Due January 15, 2029 |  |  | 12.0 |  |  |  | 12.0 |  |  |  | 12.0 |
5.90% Notes, Due December 15, 2030 |  |  | 15.0 |  |  |  | 15.0 |  |  |  | 15.0 |
7.98% Notes, Due June 1, 2031 |  |  | 14.0 |  |  |  | 14.0 |  |  |  | 14.0 |
Northern Utilities Senior Notes: |  |  |  |  |  |  |  |  |  |  |  |
6.95% Senior Notes, Series A, Due December 3, 2018 |  |  | 20.0 |  |  |  | 30.0 |  |  |  | 20.0 |
5.29% Senior Notes, Due March 2, 2020 |  |  | 25.0 |  |  |  | 25.0 |  |  |  | 25.0 |
7.72% Senior Notes, Series B, Due December 3, 2038 |  |  | 50.0 |  |  |  | 50.0 |  |  |  | 50.0 |
4.42% Senior Notes, Due October 15, 2044 |  |  | 50.0 |  |  |  | 50.0 |  |  |  | 50.0 |
Granite State Senior Notes: |  |  |  |  |  |  |  |  |  |  |  |
7.15% Senior Notes, Due December 15, 2018 |  |  | 6.7 |  |  |  | 10.0 |  |  |  | 6.7 |
Unitil Realty Corp.: |  |  |  |  |  |  |  |  |  |  |  |
Senior Secured Notes: |  |  |  |  |  |  |  |  |  |  |  |
8.00% Notes, Due Through August 1, 2017 |  |  | — |  |  |  | 0.6 |  |  |  | 0.4 |
Total Long-Term Debt |  |  | 336.2 |  |  |  | 355.0 |  |  |  | 336.6 |
Less: Unamortized Debt Issuance Costs |  |  | 2.8 |  |  |  | 3.0 |  |  |  | 3.0 |
Total Long-Term Debt, net of Unamortized Debt Issuance Costs |  |  | 333.4 |  |  |  | 352.0 |  |  |  | 333.6 |
Less: Current Portion |  |  | 29.8 |  |  |  | 17.0 |  |  |  | 16.8 |
Total Long-term Debt, Less Current Portion |  | $ | 303.6 |  |  | $ | 335.0 |  |  | $ | 316.8 |
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) |  | September 30, |  |  | December 31, |
|  | 2017 |  |  | 2016 |  |  | 2016 |
Estimated Fair Value of Long-Term Debt |  | $ | 383.0 |  |  | $ | 405.8 |  |  | $ | 370.3 |
Credit Arrangements On October 4, 2013, the Company entered into an Amended and Restated Credit Agreement (as further amended, restated, amended and restated, modified or supplemented from time to time, the “Credit Facility”). The Credit Facility terminates October 4, 2020 and provides for a borrowing limit of $120 million which includes a $25 million sublimit for the issuance of standby letters of credit. The Credit Facility provides Unitil with the ability to elect that borrowings under the Credit Facility bear interest under several options, including at a daily fluctuating rate of interest per annum equal to one-month London Interbank Offered Rate (LIBOR) plus 1.25%. Provided there is no event of default under the Credit Facility, the Company may on a one-time basis request an increase in the aggregate commitments under the Credit Facility by an aggregate additional amount of up to $30 million. The Company utilizes the Credit Facility for cash management purposes related to its short-term operating activities. Total gross borrowings were $164.2 million for the nine months ended September 30, 2017. Total gross repayments were $134.2 million for the nine months ended September 30, 2017. The following table details the borrowing limits, amounts outstanding and amounts available under the revolving Credit Facility as of September 30, 2017, September 30, 2016 and December 31, 2016:
|  | Revolving Credit Facility ($ millions) |
|  | September 30, |  |  | December 31, |
|  | 2017 |  |  | 2016 |  |  | 2016 |
Limit |  | $ | 120.0 |  |  | $ | 120.0 |  |  | $ | 120.0 |
Short-Term Borrowings Outstanding |  | $ | 111.9 |  |  | $ | 36.9 |  |  | $ | 81.9 |
Letters of Credit Outstanding |  | $ | 1.1 |  |  | $ | 1.1 |  |  | $ | 1.1 |
Available |  | $ | 7.0 |  |  | $ | 82.0 |  |  | $ | 37.0 |
The Credit Facility contains customary terms and conditions for credit facilities of this type, including affirmative and negative covenants. There are restrictions on, among other things, Unitil Corporation’s and its subsidiaries’ ability to permit liens or incur indebtedness, and restrictions on Unitil’s ability to merge or consolidate with another entity or change its line of business. The affirmative and negative covenants under the Credit Facility shall apply until the Credit Facility terminates and all amounts borrowed under the Credit Facility are paid in full (or with respect to letters of credit, they are cash collateralized). The only financial covenant in the Credit Facility provides that Funded Debt to Capitalization (as each term is defined in the Credit Facility) cannot exceed 65%, tested on a quarterly basis. At September 30, 2017, September 30, 2016 and December 31, 2016, the Company was in compliance with the covenants contained in the Credit Facility in effect on that date. The weighted average interest rates on all short-term borrowings and intercompany money pool transactions were 2.3% and 1.7% for the nine months ended September 30, 2017 and September 30, 2016, respectively. The weighted average interest rate on all short-term borrowings for the twelve months ended December 31, 2016 was 1.8%. Unitil Corporation and its utility subsidiaries, Fitchburg, Unitil Energy, Northern Utilities, and Granite State are currently rated “BBB+” by Standard & Poor’s Ratings Services. Unitil Corporation and Granite State are currently rated “Baa2”, and Fitchburg, Unitil Energy and Northern Utilities are currently rated “Baa1” by Moody’s Investors Services. On July 14, 2017, Northern Utilities, Fitchburg and Granite State, entered into agreements to issue and sell $90 million collectively of Senior Unsecured Notes (Notes) through a private placement marketing process to institutional investors. Northern Utilities priced $20 million of Notes due 2027 at 3.52% and $30 million of Notes due 2047 at 4.32%. Fitchburg priced $10 million of Notes due 2027 at 3.52% and $15 million of Notes due 2047 at 4.32%. Granite State priced $15 million of Notes due 2027 at 3.72%. Northern Utilities, Fitchburg and Granite State plan to use the net proceeds from the offering to repay short-term debt and for general corporate purposes and anticipate closing and funding this long-term financing on November 1, 2017. However, the issuance of the Notes is subject to customary closing conditions for a transaction of this type. The Notes offered have not been and will not be registered under the Securities Act of 1933 (Act), or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act and applicable state securities laws. As of September 30, 2017, the Company has deferred $0.1 million of costs associated with this financing. In April 2014, Unitil Service entered into a financing arrangement, structured as a capital lease obligation, for various information systems and technology equipment. Final funding under this capital lease occurred on October 30, 2015, resulting in total funding of $13.4 million. The capital lease matures on September 30, 2020. As of September 30, 2017, there are $2.7 million of current and $5.8 million of noncurrent obligations under this capital lease on the Company’s Consolidated Balance Sheets. 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 $9.0 million, $9.3 million and $9.9 million of natural gas storage inventory at September 30, 2017, September 30, 2016 and December 31, 2016, respectively, related to these asset management agreements. The amount of natural gas inventory released in September 2017 and payable in October 2017 is $0.1 million and is recorded in Accounts Payable at September 30, 2017. The amount of natural gas inventory released in September 2016 and payable in October 2016 was $0.1 million and is recorded in Accounts Payable at September 30, 2016. The amount of natural gas inventory released in December 2016 and payable in January 2017 was $2.1 million and was recorded in Accounts Payable at December 31, 2016. Guarantees The Company 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 September 30, 2017, there were approximately $19.8 million of guarantees outstanding and the longest term guarantee extends through August 2018. The Company also guarantees the payment of principal, interest and other amounts payable on the notes issued by Granite State. As of September 30, 2017, the principal amount outstanding for the 7.15% Granite State notes was $6.7 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 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration