Long-Term Debt

12 Months Ended

Dec. 31, 2020

LONG-TERM DEBT

Our outstanding long-term debt is shown below:


	As of December 31,
(in thousands)	2020		2019
FPU secured first mortgage bonds:
9.08% bond, due June 1, 2022	$	—	$	7,990
Uncollateralized Senior Notes:
5.50% note, due October 12, 2020	—		2,000
5.93% note, due October 31, 2023	9,000		12,000
5.68% note, due June 30, 2026	17,400		20,300
6.43% note, due May 2, 2028	5,600		6,300
3.73% note, due December 16, 2028	16,000		18,000
3.88% note, due May 15, 2029	45,000		50,000
3.25% note, due April 30, 2032	70,000		70,000
3.48% note, due May 31, 2038	50,000		50,000
3.58% note, due November 30, 2038	50,000		50,000
3.98% note, due August 20, 2039	100,000		100,000
2.98% note, due December 20, 2034	70,000		70,000
3.00% note, due July 15, 2035	50,000		—
2.96% note, due August 15, 2035	40,000		—
Term Note due February 28, 2020	—		30,000
Less: debt issuance costs	(901)		(822)
Total long-term debt	522,099		485,768
Less: current maturities	(13,600)		(45,600)
Total long-term debt, net of current maturities	$	508,499	$	440,168

Annual maturities

Annual maturities and principal repayments of long-term debt are as follows:


Year	2021		2022		2023		2024		2025		Thereafter		Total
(in thousands)
Payments	$	13,600	$	17,100	$	20,600	$	17,600	$	24,600	$	429,500	$	523,000

Shelf Agreements

We have entered into Shelf Agreements with Prudential, MetLife and NYL, whom are under no obligation to purchase any unsecured debt. The following table summarizes our shelf agreements at December 31, 2020:


(in thousands)	Total Borrowing Capacity		Less Amount of Debt Issued		Less Unfunded Commitments		Remaining Borrowing Capacity
Shelf Agreement
Prudential Shelf Agreement (1)	$	370,000	$	(220,000)	$	—	$	150,000
MetLife Shelf Agreement (2)	150,000		—		—		150,000
NYL Shelf Agreement (3)	150,000		(140,000)		—		10,000
Total	$	670,000	$	(360,000)	$	—	$	310,000

(1) In April 2020, we amended the Prudential Shelf Agreement to increase the available borrowing capacity by $150.0 million. The Shelf Agreement expires in April 2023. In July 2020, we issued $50 million of Prudential Shelf Notes at the rate of 3.00 percent per annum.

(2) In May 2020, we amended an agreement with MetLife to provide a new $150 million MetLife Shelf Agreement for a three-year term ending May 2023.

(3) In August 2020 we issued $40 million of NYL Shelf Notes at the rate of 2.96 percent per annum. The NYL Shelf Agreement expires in November 2021.

The Senior Notes, Shelf Agreements or Shelf Notes 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.

Term Notes

In January 2019, we issued a $30.0 million unsecured term note through Branch Banking and Trust Company, with a maturity date of February 28, 2020. This note was paid in full in February 2020 utilizing our short-term borrowing facilities.

Secured First Mortgage Bonds

In December 2020, we redeemed FPU’s 9.08 percent secured first mortgage bonds outstanding of $8.0 million, prior to their maturity, which included the outstanding principal balances, interest accrued, premium and fees. We used short-term borrowing to finance the redemption of these bonds. The difference between the carrying value of those bonds and the amount paid at redemption totaling $1.0 million was charged to expense. As a result of the redemption of these bonds, at December 31, 2020, the restriction that limited the payment of dividends by FPU is no longer applicable.

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 (including short-term borrowings), and the fixed charge coverage ratio must be at least 1.2 times. The most recent Senior Notes issued since September 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, 2020, the cumulative consolidated net income base was $581.0 million, offset by restricted payments of $256.4 million, leaving $324.6 million of cumulative net income free of restrictions. As of December 31, 2020, we were in compliance with all of our debt covenants.