Long-Term Debt

Our outstanding long-term debt is shown below:



	March 31,			December 31,
(in thousands)	2017			2016
FPU secured first mortgage bonds ⁽¹⁾:
9.08% bond, due June 1, 2022	$	7,979		$	7,978
Uncollateralized senior notes:
6.64% note, due October 31, 2017	2,727			2,727
5.50% note, due October 12, 2020	8,000			8,000
5.93% note, due October 31, 2023	21,000			21,000
5.68% note, due June 30, 2026	29,000			29,000
6.43% note, due May 2, 2028	7,000			7,000
3.73% note, due December 16, 2028	20,000			20,000
3.88% note, due May 15, 2029	50,000			50,000
Promissory notes	97			168
Capital lease obligation	3,125			3,471
Less: debt issuance costs	(280		)	(291		)
Total long-term debt	148,648			149,053
Less: current maturities	(12,111		)	(12,099		)
Total long-term debt, net of current maturities	$	136,537		$	136,954

⁽¹⁾ FPU secured first mortgage bonds are guaranteed by Chesapeake Utilities.

Shelf Agreement

In October 2015, we entered into a Shelf Agreement with Prudential. Under the terms of the Shelf Agreement, we may request that Prudential purchase, through October 8, 2018, up to $150.0 million of our Shelf Notes at a fixed interest rate and with a maturity date not to exceed 20 years from the date of issuance. Prudential is under no obligation to purchase any of the Shelf Notes. The interest rate and terms of payment of any series of Shelf Notes will be determined at the time of purchase.

The Shelf Agreement sets forth certain business covenants to which we are subject when any Shelf Note is outstanding, including covenants that limit or restrict our ability, and the ability of our subsidiaries, to incur indebtedness, place or permit liens and encumbrances on any of our property or the property of our subsidiaries.

In May 2016, Prudential confirmed and accepted our request that Prudential purchase $70.0 million of 3.25 percent Shelf Notes under the Shelf Agreement. We issued the Shelf Notes on April 21, 2017. The proceeds received from the Shelf Notes were used to reduce short-term borrowings under the Revolver. The balance under the Revolver had accumulated over time as capital expenditures were temporarily financed.