Atmos Energy 1999 Annual Report Download - page 51

Atmos
Energy
Corporation
47
4) LONG-TERM DEBT AND SHORT-TERM DEBT
Long-term debt at September 30, 1999 and 1998 consisted of
the following:
1999 1998
(In thousands)
Unsecured 11.2% Senior Notes, due 2002,
payable in annual installments of $2,000 $ 8,000 $ 10,000
Unsecured 9.76% Senior Notes, due 2004,
payable in annual installments of $3,000 18,000 21,000
Unsecured 9.57% Senior Notes, due 2006,
payable in annual installments of $2,000 14,000 16,000
Unsecured 7.95% Senior Notes, due 2006,
payable in annual installments of $1,000 7,000 8,000
Unsecured 10% Notes, due 2011 2,303 2,303
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
Medium term notes
Series A, 1995-1, 6.67%, due 2025 10,000 10,000
Series A, 1995-2, 6.27%, due 2010 10,000 10,000
Series A, 1995-3, 6.20%, due 2000 2,000 2,000
Unsecured 6.09% Note,
due November 1998 — 40,000
Unsecured 6.75% Debentures,
due 2028 150,000 150,000
First Mortgage Bonds
Series J, 9.40% due 2021 17,000 17,000
Series N, 8.69% due 2000 1,000 3,000
Series P, 10.43% due 2017 22,500 25,000
Series Q, 9.75% due 2020 20,000 20,000
Series R, 11.32% due 2004 10,720 12,860
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
Rental property, propane and
other term notes due in
installments through 2013 14,808 21,168
Total long-term debt 395,331 456,331
Less current maturities (17,848) (57,783)
$ 377,483 $ 398,548
Most of the Senior Notes and First Mortgage Bonds contain
provisions that allow the Company to prepay the outstanding bal-
ance in whole at any time, subject to a prepayment premium. The
Senior Note agreements and First Mortgage Bond indentures pro-
vide for certain cash flow requirements and restrictions on addition-
al 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 $15.0 million.
At September 30, 1999, approximately $44.8 million of retained
earnings was unrestricted.
As of September 30, 1999, all of the Greeley Division utility plant
assets with a net book value of approximately $173.7 million are sub-
ject 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 $293.0 million, are subject to a lien under the Indenture
of Mortgage of the Series N through V First Mortgage Bonds.
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, 1999 and 1998 is estimat-
ed, using discounted cash flow analysis, to be $387.7 million and
$489.0 million, respectively. It is not currently advantageous for the
Company to refinance its long-term debt because of costs of prepay-
ment required in the various debt agreements.
Maturities of long-term debt at September 30, 1999 are as fol-
lows (in thousands):
2000 $ 17,848
2001 15,434
2002 15,323
2003 20,995
2004 17,656
Thereafter 308,075
$ 395,331
Short-Term Debt At September 30, 1999, short-term debt was
composed of $152.7 million of commercial paper and $15.6 million
outstanding under bank credit facilities. At September 30, 1998, it
was composed of $66.4 million outstanding under bank credit facil-
ities. The weighted average interest rate on short-term borrowings
outstanding was 5.7% and 6.2% at September 30, 1999 and 1998,
respectively.