OG&E 2009 Annual Report Download - page 83

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The Company has three series of variable-rate industrial authority bonds (the “Bonds”) with optional redemption provisions
that allow the holders to request repayment of the Bonds at various dates prior to the maturity. The Bonds, which can be tendered at
the option of the holder during the next 12 months, are as follows (dollars in millions):
SERIES DATE DUE AMOUNT
0.30% -
1.00% Garfield Industrial Authority, January 1, 2025 $ 47.0
0.42% -
0.74% Muskogee Industrial Authority, January 1, 2025 32.4
0.42% - 0.75% Muskogee Industrial Authority, June 1, 2027 56.0
Total (redeemable during next 12 months) $ 135.4
All of these Bonds are subject to an optional tender at the request of the holders, at 100 percent of the principal amount,
together with accrued and unpaid interest to the date of purchase. The bond holders, on any business day, can request repayment of
the Bond by delivering an irrevocable notice to the tender agent stating the principal amount of the Bond, payment instructions for the
purchase price and the business day the Bond is to be purchased. The repayment option may only be exercised by the holder of a
Bond for the principal amount. When a tender notice has been received by the trustee, a third party remarketing agent for the Bonds
will attempt to remarket any Bonds tendered for purchase. This process occurs once per week. Since the original issuance of these
series of Bonds in 1995 and 1997, the remarketing agent has successfully remarketed all tendered bonds. If the remarketing agent is
unable to remarket any such Bonds, the Company is obligated to repurchase such unremarketed Bonds. As the Company has both the
intent and ability to refinance the Bonds on a long-term basis and such ability is supported by an ability to consummate the
refinancing, the Bonds are classified as long-term debt in the Company’s Financial Statements. The Company believes that it has
sufficient liquidity to meet these obligations.
Long-Term Debt Maturities
There are no maturities of the Company’s long-term debt during the next five years.
The Company has previously incurred costs related to debt refinancings. Unamortized debt expense and unamortized loss on
reacquired debt are classified as Deferred Charges and Other Assets and the unamortized premium and discount on long-term debt is
classified as Long-Term Debt, respectively, in the Balance Sheets and are being amortized over the life of the respective debt.
10. Short-Term Debt
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 was no short-term debt outstanding at December 31, 2009 or
2008. Also, 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 (A) Interest Rate Maturity
OGE Energy (B) $ 596.0 $ 175.0 0.27% (D) December 6, 2012
The Company (C) 389.0 10.2 0.14% (D) December 6, 2012
985.0 185.2 0.26%
Cash --- N/A N/A N/A
Total $ 985.0 $ 185.2 0.26%
(A) Includes direct borrowings under the revolving credit agreements, commercial paper borrowings and letters
of credit at December 31, 2009.
(B) This bank facility is available to back up OGE Energy’s commercial paper borrowings and to provide
revolving credit borrowings. This bank facility can also be used as a letter of credit facility. At December 31,
2009, there were no outstanding borrowings under this revolving credit agreement and approximately $175.0
million in outstanding commercial paper borrowings.
(C) This bank facility is available to back up the Company’s commercial paper borrowings and to provide
revolving credit borrowings. This bank facility can also be used as a letter of credit facility. At December 31,
2009, there was approximately $10.2 million supporting letters of credit. There were no outstanding borrowings
under this revolving credit agreement and no outstanding commercial paper borrowings at December 31, 2009.
(D) Represents the weighted-average interest rate for the outstanding borrowings under the revolving credit
agreements and commercial paper borrowings.
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