APS 2012 Annual Report Download - page 134

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PINNACLE WEST CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
109
(d) The weighted-average interest rate was 1.312% at December 31, 2012 and 1.794% at
December 31, 2011.
The following table shows principal payments due on Pinnacle West’s and APS’s total long-
term debt (dollars in millions):
Year
Consolidated
Pinnacle West
Consolidated
APS
2013
$ 123
$ 123
2014
540
540
2015
470
345
2016
358
358
2017
--
--
Thereafter
1,840
1,840
Total
$ 3,331
$ 3,206
Debt Fair Value
Our long-term debt fair value estimates are based on quoted market prices for the same or
similar issues, and are classified within level 2 of the fair value hierarchy. Certain of our debt
instruments contain third-party credit enhancements and, in accordance with GAAP, we do not consider
the effect of these credit enhancements when determining fair value. The following table represents the
estimated fair value of our long-term debt, including current maturities (dollars in millions):
As of
December 31, 2012
As of
December 31, 2011
Carrying
Amount
Fair Value
Carrying
Amount
Fair Value
Pinnacle West
$ 125
$ 125
$ 125
$ 123
APS
3,197
3,750
3,371
3,803
Total
$ 3,322
$ 3,875
$ 3,496
$ 3,926
Credit Facilities and Debt Issuances
Pinnacle West
On November 29, 2012, Pinnacle West entered into a $125 million term loan that matures
November 27, 2015. Pinnacle West used the proceeds of the loan to repay its existing term loan of $125
million. Interest rates are based on Pinnacle West’s senior unsecured debt credit ratings or, if
unavailable, its long-term issuer ratings.