DEBT

Long-term debt comprises the following at September 30:



	2018			2017
Senior Notes:
4.12%, due September 2046	$	200,000		$	200,000
4.98%, due March 2044	175,000			175,000
4.12%, due October 2046	100,000			100,000
6.21%, due September 2036	100,000			100,000
2.95%, due June 2026	100,000			100,000
Medium-Term Notes:
7.25%, due November 2017	—			20,000
5.67%, due January 2018	—			20,000
6.50%, due August 2033	20,000			20,000
6.13%, due October 2034	20,000			20,000
Variable-rate term loan, due through October 2022	120,313			—
Capital lease obligations	6,817			—
Total long-term debt	842,130			755,000
Less: unamortized debt issuance costs	(4,134		)	(3,899		)
Less: current maturities	(9,001		)	(39,996		)
Total long-term debt due after one year	$	828,995		$	711,105

Scheduled principal repayments of long-term debt for each of the next five fiscal years ending September 30 are as follows: $9,001 is due in Fiscal 2019; $8,225 is due in Fiscal 2020; $7,841 is due in Fiscal 2021; $6,751 is due in Fiscal 2022; and $95,313 is due in Fiscal 2023.

In April 2016, UGI Utilities entered into a Note Purchase Agreement (the “2016 Note Purchase Agreement”) with a consortium of lenders. Pursuant to the 2016 Note Purchase Agreement, UGI Utilities issued $100,000 aggregate principal amount of 2.95% Senior Notes due June 2026 and $200,000 aggregate principal amount of 4.12% Senior Notes due September 2046 in June 2016 and September 2016, respectively. In October 2016, UGI Utilities issued $100,000 aggregate principal amount of 4.12% Senior Notes due October 2046 (the “4.12% Senior Notes”). The net proceeds of the issuance of these senior notes were used (1) to repay UGI Utilities’ maturing 5.75% Senior Notes, 7.37% Medium-term Notes and 5.64% Medium-term Notes; (2) to provide additional financing for UGI Utilities’ infrastructure replacement and betterment capital program and IT initiatives and (3) for general corporate purposes. These senior notes are unsecured and rank equally with UGI Utilities’ existing outstanding senior debt.

In October 2017, UGI Utilities entered into a $125,000 unsecured variable-rate term loan agreement (the “Term Loan”) with a group of banks. Proceeds from the Term Loan were used to repay revolving credit agreement borrowings and for general corporate purposes. The Term Loan is payable in equal quarterly installments of $1,563, commencing in March 2018, with the balance of the principal being due and payable in full on October 30, 2022. Under the Term Loan, UGI Utilities may borrow at various prevailing market interest rates, including LIBOR and the banks’ prime rate, plus a margin. The margin on such borrowings ranges from 0.0% to 1.875% and is based upon the credit ratings of certain indebtedness of UGI Utilities. The Term Loan requires that UGI Utilities not exceed a ratio of Consolidated Debt to Consolidated Total Capital, as defined. In July 2018, UGI Utilities entered into forward-starting pay-fixed, receive-variable interest rate swap that generally fixes the underlying prevailing market interest rates on Term Loan borrowings at approximately 3.00% through July 2022. This forward-starting interest rate swap commences September 30, 2019. We have designated this forward-starting interest rate swap as a cash flow hedge. The effective interest rate on this term loan at September 30, 2018, was 2.76%.

In September 2018, UGI Utilities entered into an Increasing Lender Commitment and Acceptance (the “Commitment and Acceptance”) under its existing unsecured, revolving credit agreement (the “Credit Agreement”). The Commitment and Acceptance increases the amount of loan commitments under the Credit Agreement to $450,000 from $300,000. After entering into the Commitment and Acceptance, the Credit Agreement provides for borrowings of up to $450,000 (including a $100,000 sublimit for letters of credit) and expires in March 2020. Under the Credit Agreement, UGI Utilities may borrow at various prevailing market interest rates, including LIBOR and the banks’ prime rate, plus a margin. The margin on such borrowings ranges from 0.0% to 1.75% and is based upon the credit ratings of certain indebtedness of UGI Utilities. UGI Utilities had borrowings outstanding under the Credit Agreement, which we classify as “Short-term borrowings” on the Consolidated Balance Sheets, totaling $189,500 and $170,000 at September 30, 2018 and 2017, respectively. The weighted-average interest rates on the credit agreement borrowings at September 30, 2018 and 2017 were 3.03% and 2.11%, respectively. Issued and outstanding letters of credit, which reduce available borrowings under the credit agreements, totaled $2,000 and $2,009 at September 30, 2018 and 2017, respectively.

Restrictive Covenants. Certain of UGI Utilities Senior Notes include the usual and customary covenants for similar type notes including, among others, maintenance of existence, payment of taxes when due, compliance with laws and maintenance of insurance. These Senior Notes also contain restrictive and financial covenants including a requirement that UGI Utilities not exceed a ratio of Consolidated Debt to Consolidated Total Capital, as defined, of 0.65 to 1.00.

The Credit Agreement requires UGI Utilities not to exceed a ratio of Consolidated Debt to Consolidated Total Capital, as defined.