Vectren 2012 Annual Report Download - page 100

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98
Debt Guarantees
Vectren Corporation guarantees Vectren Capital’s long-term and short-term debt, which totaled $450 million and $162 million,
respectively, at December 31, 2012. Utility Holdings’ currently outstanding long-term and short-term debt is jointly and severally
guaranteed by Indiana Gas, SIGECO, and VEDO. Utility Holdings’ long-term debt, including current maturities, and short-term
debt outstanding at December 31, 2012, totaled $821 million and $117 million, respectively.
Covenants
Both long-term and short-term borrowing arrangements contain customary default provisions; restrictions on liens, sale-
leaseback transactions, mergers or consolidations, and sales of assets; and restrictions on leverage, among other
restrictions. Multiple debt agreements contain a covenant that the ratio of consolidated total debt to consolidated total
capitalization will not exceed 65 percent. As of December 31, 2012, the Company was in compliance with all debt covenants.
Short-Term Borrowings
At December 31, 2012, the Company has $600 million of short-term borrowing capacity, including $350 million for the Utility
Group and $250 million for the wholly owned Nonutility Group and corporate operations. As reduced by borrowings currently
outstanding, approximately $233 million was available for the Utility Group operations and approximately $88 million was
available for the wholly owned Nonutility Group and corporate operations. Both Vectren Capital’s and Utility Holdings’ short-term
credit facilities were renewed in November 2011 and are available through September 2016. The maximum limit of both
facilities remained unchanged. These facilities are used to supplement working capital needs and also to fund capital
investments and debt redemptions until financed on a long-term basis.
Following is certain information regarding these short-term borrowing arrangements.
Utility Group Borrowings Nonutility Group Borrowings
(In millions) 2012 2011 2010 2012 2011 2010
Year End
Balance Outstanding $ 116.7 $ 242.8 $ 47.0 $ 162.1 $ 84.3 $ 71.3
Weighted Average Interest Rate 0.40% 0.57% 0.41% 1.35% 1.45% 2.01%
Annual Average
Balance Outstanding $ 77.6 $ 39.6 $ 14.0 $ 151.5 $ 124.9 $ 143.2
Weighted Average Interest Rate 0.47% 0.48% 0.40% 1.44% 1.92% 0.93%
Maximum Month End Balance
Outstanding $ 214.2 $ 242.8 $ 47.0 $ 216.1 $ 180.1 $ 174.6
Throughout 2012, 2011, and 2010, the Company has placed commercial paper without any significant issues and did not borrow
from Utility Holdings' backup credit facility in any of the periods presented.
13. Common Shareholders’ Equity
Authorized, Reserved Common and Preferred Shares
At December 31, 2012 and 2011, the Company was authorized to issue 480 million shares of common stock and 20 million
shares of preferred stock. Of the authorized common shares, approximately 6.5 million shares at December 31, 2012 and 6.8
million shares at December 31, 2011, were reserved by the board of directors for issuance through the Company’s share-based
compensation plans, benefit plans, and dividend reinvestment plan. At both December 31, 2012 and 2011, there were 391.3
million of authorized shares of common stock and all authorized shares of preferred stock, available for a variety of general
corporate purposes, including future public offerings to raise additional capital and for facilitating acquisitions.