OG&E 2009 Annual Report Download - page 52

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Security Ratings
Moody’s Standard & Poor’s Fitch’s
Company Senior Notes A2 BBB+ AA-
A security rating is not a recommendation to buy, sell or hold securities. Such rating may be subject to revision or
withdrawal at any time by the credit rating agency and each rating should be evaluated independently of any other rating.
Future financing requirements may be dependent, to varying degrees, upon numerous factors such as general economic
conditions, abnormal weather, load growth, commodity prices, acquisitions of other businesses and/or development of projects,
actions by rating agencies, inflation, changes in environmental laws or regulations, rate increases or decreases allowed by regulatory
agencies, new legislation and market entry of competing electric power generators.
Future Sources of Financing
Management expects that cash generated from operations, proceeds from the issuance of long and short-term debt and funds
received from OGE Energy (from proceeds from the sales of its common stock to the public through OGE Energy’s Automatic
Dividend Reinvestment and Stock Purchase Plan or other offerings) will be adequate over the next three years to meet anticipated cash
needs. The Company utilizes short-term borrowings (through a combination of bank borrowings, commercial paper and borrowings
from OGE Energy) to satisfy temporary working capital needs and as an interim source of financing capital expenditures until
permanent financing is arranged.
Short-Term Debt
Short-term borrowings or advances from OGE Energy generally are used to meet working capital requirements. The
Company borrows on a short-term basis, as necessary, by the issuance of commercial paper, by borrowings under its revolving credit
agreement or by advances from OGE Energy. There were no outstanding borrowings under this revolving credit agreement and no
outstanding commercial paper borrowings at December 31, 2009 or 2008. At December 31, 2009, the Company had no outstanding
advances from OGE Energy. At December 31, 2008, the Company had approximately $17.6 million in outstanding advances from
OGE Energy. The following table provides information regarding OGE Energy’s and the Company’s revolving credit agreements and
available cash at December 31, 2009.
Revolving Credit Agreements and Available Cash (In millions)
Aggregate Amount Weighted-Average
Entity Commitment Outstanding Interest Rate Maturity
OGE Energy $ 596.0 $ 175.0 0.27% December 6, 2012
The Company 389.0 10.2 0.14% December 6, 2012
985.0 185.2 0.26%
Cash --- N/A N/A N/A
Total $ 985.0 $ 185.2 0.26%
The Company has the necessary regulatory approvals to incur up to $800 million in short-term borrowings at any time for a
two-year period beginning January 1, 2009 and ending December 31, 2010. See Note 10 of Notes to Financial Statements for a
discussion of OGE Energy’s and the Company’s short-term debt activity.
Registration Statement Filing
During the first half of 2010, the Company expects to file a Form S-3 Registration Statement to register debt securities for
sale by the Company.
Expected Issuance of Long-Term Debt
The Company expects to issue approximately $250 million of long-term debt in mid-2010, depending on market conditions,
to fund capital expenditures, repay short-term borrowings and for general corporate purposes.
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