Long-Term Debt

12 Months Ended

Sep. 30, 2020

LONG-TERM DEBT

In December 2019, Midstream entered into the Third Amendment to its Credit Agreement ("Amendment") and amendments to the related Promissory Notes ("Notes") with the corresponding banks. The Amendment modified the original Credit Agreement and prior amendments between Midstream and the banks by increasing the total borrowing capacity to $41,000,000 from its previous limit of $26,000,000 and extending the maturity date to December 29, 2022. The Amendment retained all of the other provisions contained in the previous credit agreements and amendments including the interest rate on the Notes based on 30-day LIBOR plus 1.35%. The additional limits under the Amendment provide additional financing for the investment in the MVP.

In December 2019, Roanoke Gas entered into unsecured notes in the aggregate principal amount of $10,000,000. These notes have a 10-year term with a fixed interest rate of 3.60%. Proceeds from these notes provided funding for Roanoke Gas' capital budget.

Roanoke Gas also has other unsecured notes at varying fixed interest rates as well as a variable-rate note with interest based on 30-day LIBOR plus 90 basis points. The variable rate note is hedged by a swap agreement, which converts the debt into a fixed-rate instrument with an annual interest rate of 2.30%.

Midstream has two other variable rate notes in the amounts of $14,000,000 and $10,000,000 that are hedged by swap agreements, which effectively convert the interest rates to 3.24% and 3.14%, respectively.

Long-term debt consists of the following:


	September 30
	2020				2019
	Principal		Unamortized Debt Issuance Costs		Principal		Unamortized Debt Issuance Costs
Roanoke Gas:
Unsecured senior notes payable, at 4.26%, due on September 18, 2034	$	30,500,000	$	135,157	$	30,500,000	$	144,811
Unsecured term note payable, at 30-day LIBOR plus 0.90%, November 1, 2021	7,000,000		3,613		7,000,000		6,948
Unsecured term notes payable, at 3.58% due on October 2, 2027	8,000,000		33,712		8,000,000		38,528
Unsecured term notes payable at 4.41%, due on March 28, 2031	10,000,000		32,892		10,000,000		36,272
Unsecured term notes payable at 3.60%, due on December 6, 2029	10,000,000		32,585		—		—
Midstream:
Unsecured term notes payable, at 30-day LIBOR plus 1.35% due December 29, 2022	25,475,200		38,728		16,012,200		59,504
Unsecured term note payable, at 30-day LIBOR plus 1.15%, due June 12, 2026	14,000,000		13,844		14,000,000		16,252
Unsecured term note payable, at 30-day LIBOR plus 1.20%, due June 1, 2024	10,000,000		8,644		10,000,000		11,000
Total notes payable	$	114,975,200	$	299,175	$	95,512,200	$	313,315
Line-of-credit, at 30-day LIBOR plus 1.00%, due March 31, 2022	9,143,606		—		8,172,473		—

Total long-term debt	$	124,118,806	$	299,175	$	103,684,673	$	313,315

Debt issuance costs are amortized over the life of the related debt. As of September 30, 2020 and 2019, the Company also had an unamortized loss on the early retirement of debt of $1,598,620 and $1,712,808, respectively, which has been deferred as a regulatory asset and is being amortized over a 20 year period.

All of the debt agreements set forth certain representations, warranties and covenants to which the Company is subject, including financial covenants that require the ratio of long-term debt to long-term capitalization to not exceed 65%. All of the debt agreements except for the line-of-credit provide for priority indebtedness to not exceed 15% of consolidated total assets. The Company was in compliance with all debt covenants as of September 30, 2020 and September 30, 2019.

The aggregate annual maturities of long-term debt for the next five years ending after September 30, 2020 are as follows:


Year Ending September 30	Maturities
2021	$	—
2022	16,268,606
2023	25,975,200
2024	9,375,000
2025	—
Thereafter	72,500,000
Total	$	124,118,806