Short-Term and Long-Term Borrowings

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Short-Term and Long-Term Borrowings

10. Short-Term and Long-Term Borrowings

The following table presents the status of our lines of credit as of March 31, 2016 and December 31, 2015:

(in thousands)	Line Limit		In Use on  March 31,  2016		Restricted due to  Outstanding  Letters of Credit		Available on March 31,  2016		Available on December  31, 2015
Otter Tail Corporation Credit Agreement	$	150,000	$	20,880	$	—	$	129,120	$	90,334
OTP Credit Agreement		170,000		22,056		—		147,944		148,694
Total	$	320,000	$	42,936	$	—	$	277,064	$	239,028

Debt Issuances and Retirements

On February 5, 2016 the Company entered into a Term Loan Agreement (the Term Loan Agreement) with the Banks named therein, JPMorgan Chase Bank, N.A., as administrative agent, and JPMS, as Lead Arranger and Book Runner. The Term Loan Agreement provides for an unsecured term loan with an aggregate commitment of $50 million that the Company may use for purposes of funding working capital, capital expenditures and other corporate purposes of the Company and certain of our subsidiaries. Under the Term Loan Agreement, the Company may, on up to two occasions, enter into additional tranches of term loans in minimum increments of $10 million, subject to the consent of the lenders and so long as the aggregate amount of outstanding term loans does not exceed $100 million at any time. Borrowings under the Term Loan Agreement will bear interest at either (1) LIBOR plus 0.90% or (2) the greater of (a) the Prime Rate, (b) the Federal Reserve Bank of New York Rate plus 0.50% and (c) LIBOR multiplied by the Statutory Reserve Rate plus 1%. The applicable interest rate will depend on the Company’s election of whether to make the advance a LIBOR advance. The Term Loan Agreement terminates on February 5, 2018. The Term Loan Agreement contains a number of restrictions on the Company, Varistar and certain subsidiaries of Varistar, including restrictions on their ability to merge, sell assets, make investments, create or incur liens on assets, guarantee the obligations of any other party and engage in transactions with related parties. The Term Loan Agreement also contains affirmative covenants and events of default, and certain financial covenants. Specifically, the Company must not permit the ratio of its Interest-bearing Debt to Total Capitalization to be greater than 0.60 to 1.00 or permit its Interest and Dividend Coverage Ratio to be less than 1.50 to 1.00 (each measured on a consolidated basis), as provided in the Term Loan Agreement. The Term Loan Agreement does not include provisions for the termination of the agreement or the acceleration of repayment of amounts outstanding due to changes in the Company’s credit ratings. The Company’s obligations under the Term Loan Agreement are guaranteed by Varistar and certain of its subsidiaries.

On February 5, 2016 the Company borrowed $50 million under the Term Loan Agreement at an interest rate based on the 30 day LIBOR plus 90 basis points and used the proceeds to pay down borrowings under the Otter Tail Corporation Credit Agreement that were used to fund the expansion of BTD’s Minnesota facilities in 2015 and to fund the September 1, 2015 acquisition of BTD-Georgia.

The following tables provide a breakdown of the assignment of the Company’s consolidated short-term and long-term debt outstanding as of March 31, 2016 and December 31, 2015:

March 31, 2016 (in thousands)	OTP		Otter Tail  Corporation		Otter Tail  Corporation  Consolidated
Short-Term Debt	$	22,056	$	20,880	$	42,936
Long-Term Debt:
9.000% Notes, due December 15, 2016			$	52,330	$	52,330
Term Loan, LIBOR plus 0.90%, due February 5, 2018				50,000		50,000
Senior Unsecured Notes 5.95%, Series A, due August 20, 2017	$	33,000				33,000
Senior Unsecured Notes 4.63%, due December 1, 2021		140,000				140,000
Senior Unsecured Notes 6.15%, Series B, due August 20, 2022		30,000				30,000
Senior Unsecured Notes 6.37%, Series C, due August 20, 2027		42,000				42,000
Senior Unsecured Notes 4.68%, Series A, due February 27, 2029		60,000				60,000
Senior Unsecured Notes 6.47%, Series D, due August 20, 2037		50,000				50,000
Senior Unsecured Notes 5.47%, Series B, due February 27, 2044		90,000				90,000
North Dakota Development Note, 3.95%, due April 1, 2018				163		163
Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021				944		944
Total	$	445,000	$	103,437	$	548,437
Less: Current Maturities net of Unamortized Debt Issuance Costs				52,457		52,457
Unamortized Long-Term Debt Issuance Costs		2,039		140		2,179
Total Long-Term Debt net of Unamortized Debt Issuance Costs	$	442,961	$	50,840	$	493,801
Total Short-Term and Long-Term Debt (with current maturities)	$	465,017	$	124,177	$	589,194

December 31, 2015 (in thousands)	OTP		Otter Tail  Corporation		Otter Tail  Corporation  Consolidated
Short-Term Debt	$	21,006	$	59,666	$	80,672
Long-Term Debt:
9.000% Notes, due December 15, 2016			$	52,330	$	52,330
Senior Unsecured Notes 5.95%, Series A, due August 20, 2017	$	33,000				33,000
Senior Unsecured Notes 4.63%, due December 1, 2021		140,000				140,000
Senior Unsecured Notes 6.15%, Series B, due August 20, 2022		30,000				30,000
Senior Unsecured Notes 6.37%, Series C, due August 20, 2027		42,000				42,000
Senior Unsecured Notes 4.68%, Series A, due February 27, 2029		60,000				60,000
Senior Unsecured Notes 6.47%, Series D, due August 20, 2037		50,000				50,000
Senior Unsecured Notes 5.47%, Series B, due February 27, 2044		90,000				90,000
North Dakota Development Note, 3.95%, due April 1, 2018				182		182
Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021				977		977
Total	$	445,000	$	53,489	$	498,489
Less: Current Maturities net of Unamortized Debt Issuance Costs				52,422		52,422
Unamortized Long-Term Debt Issuance Costs		2,099		122		2,221
Total Long-Term Debt net of Unamortized Debt Issuance Costs	$	442,901	$	945	$	443,846
Total Short-Term and Long-Term Debt (with current maturities)	$	463,907	$	113,033	$	576,940