LONG-TERM DEBT

Our outstanding long-term debt is shown below:



	As of December 31,
(in thousands)	2018			2017
FPU secured first mortgage bonds:
9.08% bond, due June 1, 2022	$	7,986		$	7,982
Uncollateralized Senior Notes:
5.50% note, due October 12, 2020	4,000			6,000
5.93% note, due October 31, 2023	15,000			18,000
5.68% note, due June 30, 2026	23,200			26,100
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
3.25% note, due April 30, 2032	70,000			70,000
3.48% note, due May 31, 2038	50,000			—
3.58% note, due November 30, 2038	50,000			—
Term Note due January 21, 2020 ⁽¹⁾	30,000			—
Promissory notes	26			97
Capital lease obligations	1,310			2,070
Less: debt issuance costs	(567		)	(433		)
Total long-term debt	327,955			206,816
Less: current maturities	(11,935		)	(9,421		)
Total long-term debt, net of current maturities	$	316,020		$	197,395

⁽¹⁾In December of 2018 we issued a $30.0 million unsecured Term Note through PNC Bank N.A. The maturity date of the Term Note is January 21, 2020. The Term Note bears interest at a rate equal to the one month LIBOR rate plus 75 basis points. The interest rate at December 31, 2018 was 3.23%

Annual maturities

Annual maturities and principal repayments of long-term debt, excluding the capital lease obligation, are as follows:



Year	2019		2020		2021		2022		2023		Thereafter		Total
(in thousands)
Payments	$	10,626	$	45,600	$	13,600	$	25,100	$	20,600	$	211,700	$	327,226

See Note 15, Lease Obligations, for future payments related to the capital lease obligation.

Shelf Agreements

We have entered into Shelf Agreements with Prudential, MetLife and NYL who are under no obligation to purchase any unsecured debt.

The Prudential Shelf Agreement totaling $150.0 million was entered in October 2015 and we issued $70.0 million of 3.25 percent unsecured debt in April 2017. The Prudential Shelf Agreement was amended in September 2018 to increase the borrowing capacity to $150.0 million after which Prudential accepted our request to purchase our unsecured debt of $100.0 million at an interest rate of 3.98 percent on or before August 20, 2019. The NYL Shelf Agreement totaling $100.0 million was entered in March 2017 and we issued unsecured debt totaling $100.0 million during 2018. The NYL Shelf Agreement was amended in November 2018 to provide additional borrowing capacity of $50.0 million. As of December 31, 2018, we had not requested that MetLife purchase unsecured senior debt under the MetLife Shelf Agreement.

The following table summarizes our shelf agreements borrowing information at December 31, 2018:



(in thousands)	Total Borrowing Capacity		Less Amount of Debt Issued			Less Unfunded Commitments			Remaining Borrowing Capacity
Shelf Agreement
Prudential Shelf Agreement	$	220,000	$	(70,000	)	$	(100,000	)	$	50,000
MetLife Shelf Agreement	150,000		—			—			150,000
NYL Shelf Agreement	150,000		(100,000		)	—			50,000
Total	$	520,000	$	(170,000	)	$	(100,000	)	$	250,000

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

Secured First Mortgage Bonds

We guaranteed FPU’s first mortgage bonds, which are secured by a lien covering all of FPU’s property. FPU’s first mortgage bonds contain a restriction that limits the payment of dividends by FPU to an amount less than the sum of $2.5 million plus FPU’s consolidated net income accrued on and after January 1, 1992. As of December 31, 2018, FPU’s cumulative net income base was $155.8 million, offset by restricted payments of $37.6 million, leaving $118.2 million of available dividend capacity.

The dividend restrictions in FPU’s first mortgage bonds resulted in approximately $42.2 million of the net assets of our consolidated subsidiaries being restricted at December 31, 2018. This represents approximately 8.1 percent of our consolidated net assets. Other than the dividend restrictions associated with FPU’s first mortgage bonds, there are no legal, contractual or regulatory restrictions on the net assets of our subsidiaries.

Uncollateralized Senior Notes

All of our uncollateralized Senior Notes require periodic principal and interest payments as specified in each note. They also contain various restrictions. The most stringent restrictions state that we must maintain equity of at least 40.0 percent of total capitalization, and the fixed charge coverage ratio must be at least 1.2 times. The most recent Senior Notes issued in December 2013 also contain a restriction that we must maintain an aggregate net book value in our regulated business assets of at least 50.0 percent of our consolidated total assets. Failure to comply with those covenants could result in accelerated due dates and/or termination of the Senior Note agreements.

Certain uncollateralized Senior Notes contain a “restricted payments” covenant as defined in the respective note agreements. The most restrictive covenants of this type are included within the 5.93 percent Senior Note, due October 31, 2023. The covenant provides that we cannot pay or declare any dividends or make any other restricted payments in excess of the sum of $10.0 million, plus our consolidated net income accrued on and after January 1, 2003. As of December 31, 2018, the cumulative consolidated net income base was $444.3 million, offset by restricted payments of $201.5 million, leaving $242.8 million of cumulative net income free of restrictions. As of December 31, 2018, we are in compliance with all of our debt covenants.