APS 2015 Annual Report Download - page 119

Table of Contents
COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table shows principal payments due on Pinnacle West’s and APS’s total long-term debt (dollars in thousands):
Year
Consolidated
Pinnacle West
Consolidated
APS
2016
$ 357,580
$ 357,580
2017
125,000
—
2018
82,000
82,000
2019
500,000
500,000
2020
250,000
250,000
Thereafter
2,538,975
2,538,975
Total
$ 3,853,555
$ 3,728,555
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 thousands):
As of
December 31, 2015
As of
December 31, 2014
Carrying
Amount
Fair Value
Carrying
Amount
Fair Value
Pinnacle West $ 125,000
$ 125,000
$ 125,000
$ 125,000
APS 3,694,971
3,981,367
3,265,143
3,714,108
Total $ 3,819,971
$ 4,106,367
$ 3,390,143
$ 3,839,108
Credit Facilities and Debt Issuances
APS
On January 12, 2015, APS issued $250 million of 2.20% unsecured senior notes that mature on January 15, 2020. The net
proceeds from the sale were used to repay commercial paper borrowings and replenish cash temporarily used to fund capital
expenditures.
On May 19, 2015, APS issued $300 million of 3.15% unsecured senior notes that mature on May 15, 2025. The net proceeds
from the sale were used to repay short-term indebtedness consisting of commercial paper borrowings and drawings under our revolving
credit facilities, incurred in connection with the payment at maturity of our $300 million aggregate principal amount of 4.65% notes due
May 15, 2015.
On May 28, 2015, APS purchased all $32 million of Maricopa County, Arizona Pollution Control Corporation Pollution Control
Revenue Refunding Bonds, 2009 Series B, due 2029 in connection with the mandatory tender provisions for this indebtedness. These
bonds were classified as current maturities of long-term debt on our Consolidated Balance Sheets at December 31, 2014.
On June 26, 2015, APS entered into a $50 million term loan facility that matures June 26, 2018. Interest rates are based on
APS’s senior unsecured debt credit ratings. APS used the proceeds to repay and refinance existing short-term indebtedness.
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