APS 2012 Annual Report Download - page 90

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On January 13, 2012, APS issued $325 million of 4.50% unsecured senior notes that mature on
April 1, 2042. The net proceeds from the sale were used along with other funds to repay at maturity
APS’s $375 million aggregate principal amount of 6.50% senior notes on March 1, 2012.
On May 1, 2012, pursuant to the mandatory tender provision, APS purchased all $32 million of
the Maricopa County, Arizona Pollution Control Corporation Pollution Control Revenue Refunding
Bonds (Arizona Public Service Company Palo Verde Project), 2009 Series B, due 2029. On June 1,
2012 these bonds were remarketed. Currently, the interest rate on these bonds is reset daily by a
remarketing agent. The daily rate at December 31, 2012 was 0.13% per annum. Additionally, the
bonds are supported by a letter of credit. These bonds are classified as long-term debt on our
Consolidated Balance Sheets at December 31, 2012 and were classified as current maturities of long-
term debt on our Consolidated Balance Sheets at December 31, 2011.
On June 1, 2012, pursuant to the mandatory tender provision, APS changed the interest rate
mode for the approximately $38 million of Navajo County, Arizona Pollution Control Corporation
Pollution Control Revenue Refunding Bonds (Arizona Public Service Company Cholla Project), 2009
Series A. The new term rate period for these bonds commenced on June 1, 2012, and ends, subject to a
mandatory tender, on May 29, 2014. During this time, the bonds will bear interest at a rate of 1.25% per
annum. These bonds are classified as long-term debt on our Consolidated Balance Sheets at
December 31, 2012 and were classified as current maturities of long-term debt on our Consolidated
Balance Sheets at December 31, 2011.
On November 1, 2012 APS redeemed at par all $90 million of the Maricopa County, Arizona
Pollution Control Corporation Pollution Control Revenue Refunding Bonds (Arizona Public Service
Company Palo Verde Project) 2002 Series A, due 2029.
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.
Available Credit Facilities Pinnacle West and APS maintain committed revolving credit
facilities in order to enhance liquidity and provide credit support for their commercial paper programs.
At December 31, 2012, Pinnacle West’s $200 million credit facility, which matures in
November 2016, was available to refinance indebtedness of the Company and for other general
corporate purposes, including credit support for its $200 million commercial paper program. Pinnacle
West has the option to increase the amount of the facility up to a maximum of $300 million upon the
satisfaction of certain conditions and with the consent of the lenders. At December 31, 2012, Pinnacle
West had no outstanding borrowings under its credit facility, no letters of credit outstanding and no
commercial paper borrowings.
At December 31, 2012, APS had two credit facilities totaling $1 billion, including a $500
million credit facility that matures in February 2015, and a $500 million facility that matures in
November 2016. APS may increase the amount of each facility up to a maximum of $700 million upon
the satisfaction of certain conditions and with the consent of the lenders. APS will use these facilities to
refinance indebtedness and for other general corporate purposes. Interest rates are based on APS’s
senior unsecured debt credit ratings.