Atmos Energy 1997 Annual Report Download - page 39

34 ATMOS ENERGY CORPORATION
Consolidated rent expense amounted to $10,522,000, $9,710,000 and $9,175,000 for fis-
cal 1997, 1996 and 1995, respectively. Rents for the regulated business are expensed and
the Company receives rate treatment as a cost of service on a pay-as-you-go basis.
SEVEN Long-term debt and notes payable
Long-term debt at September 30, 1997 and 1996 consisted of the following:
(In thousands) 1997 1996
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Unsecured 7.95% Senior Notes, due 2006,
payable in annual installments of $1,000 ........................................ $ 9,000 $ 10,000
Unsecured 9.57% Senior Notes, due 2006,
payable in annual installments of $2,000 ........................................ 18,000 20,000
Unsecured 9.76% Senior Notes, due 2004,
payable in annual installments of $3,000 ........................................ 24,000 27,000
Unsecured 11.2% Senior Notes, due 2002,
payable in annual installments of $2,000 ........................................ 12,000 14,000
Unsecured 10% Notes, due 2011........................................................ 2,303 2,303
Unsecured 6.09% Note, due 1998 ...................................................... 40,000 -
Unsecured 8.07% Senior Notes, due 2006, payable
in annual installments of $4,000 beginning 2002............................ 20,000 20,000
Unsecured 8.26% Senior Notes, due 2014, payable
in annual installments of $1,818 beginning 2004............................ 20,000 20,000
Unsecured 9.75% Senior Notes, due 1996 ......................................... -1,000
First Mortgage Bonds
Series J, 9.40% due 2021................................................................ 17,000 17,000
Series N, 8.69% due 2002................................................................ 5,000 7,000
Series P, 10.43% due 2017.............................................................. 25,000 25,000
Series Q,9.75% due 2020................................................................ 20,000 20,000
Series R, 11.32% due 2004.............................................................. 15,000 15,000
Series T, 9.32% due 2021................................................................ 18,000 18,000
Series U, 8.77% due 2022................................................................ 20,000 20,000
Series V, 7.50% due 2007................................................................ 10,000 10,000
Medium term notes
Series A, 1995-1, 6.67%, due 2025 ................................................. 10,000 10,000
Series A, 1995-2, 6.27%, due 2020 ................................................. 10,000 10,000
Series A, 1995-3, 6.20%, due 2000 ................................................. 2,000 2,000
Rental property, propane and other term notes
due in installments through 2013.................................................... 20,879 24,538
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Total long-term debt.................................................................... 318,182 292,841
Less current maturities......................................................................... (15,201) (16,679)
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$302,981 $ 276,162
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The Company may prepay most of the Senior Notes or First Mortgage Bonds in whole at
any time, subject to a prepayment premium. The note agreements provide for certain cash
flow requirements and restrictions on additional indebtedness, sale of assets and payment
of dividends. Under the most restrictive of such covenants, cumulative cash dividends paid
after December 31, 1988 may not exceed the sum of accumulated net income for periods
after December 31, 1988 plus $15,038,000. At September 30, 1997, approximately
$37,489,000 of retained earnings was not so restricted.
As of September 30, 1997, all of the Greeley Gas Division utility plant assets with a net
book value of approximately $83,371,000 are subject to a lien under the 9.4% Series J
First Mortgage Bonds assumed by the Company in the acquisition of Greeley Gas
Company. Also, substantially all of the United Cities Division utility plant assets, totaling
approximately $314,591,000 are subject to a lien under the Indenture of Mortgage of the
Series N through V First Mortgage Bonds.
UCG Energy and Woodward Marketing, Inc. (“WMI”), sole shareholders of Woodward
Marketing, L.L.C. (“WMLLC”), act as guarantors of a $12,500,000 credit facility for
WMLLC with a bank. No balance was outstanding on this credit facility at September 30,
1997. UCG Energy and WMI also act as joint and several guarantors on certain purchases
of natural gas and transportation services from suppliers by WMLLC. These outstanding
obligations amounted to $12,200,000 at September 30, 1997.
Based on the borrowing rates currently available to the Company for debt with similar
terms and remaining average maturities, the fair value of long-term debt at September 30,
1997 and 1996 is estimated using discounted cash flow analysis to be $348,261,000 and
$329,811,000, respectively. It is not currently advantageous for the Company to refinance
its long-term debt because of prepayment costs set forth in the various debt agreements.
Maturities of long-term debt are as follows (in thousands):
1998 ................................................................................................................................ $ 15,201
1999 ................................................................................................................................ 56,578
2000 ................................................................................................................................ 14,790
2001 ................................................................................................................................ 14,141
2002 ................................................................................................................................ 14,205
Thereafter....................................................................................................................... 203,267
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$318,182
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Notes payable to banks The Company has committed short-term, unsecured bank
credit facilities totaling $187,000,000, $35,000,000 of which was unused at September
30, 1997. One facility of $175,000,000 requires a commitment fee of .06% on the unused
portion. A second facility for $12,000,000 requires a commitment fee of 5/32 of 1% on
the unused portion. The committed lines are renewed or renegotiated at least annually.
The Company also had aggregate uncommitted credit lines of $170,000,000, of which
$159,900,000 was unused as of September 30, 1997. The uncommitted lines have vary-
ing terms and the Company pays no fee for the availability of the lines. Borrowings under
these lines are made on a when and as-available basis at the discretion of the banks.
The weighted average interest rates on short-term borrowings outstanding at September
30, 1997 and 1996 were 6.1% and 6.3%, respectively.