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Debt
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Indebtedness DEBT
Long-Term Debt

The following table presents our long-term debt:
  September 30,December 31,
SeriesDue20242023
 (In Thousands)
AES Indiana first mortgage bonds:  
3.125% (1)
December 2024$40,000 $40,000 
0.65% (1)
August 202540,000 40,000 
0.75% (2)
April 202630,000 30,000 
0.95% (2)
April 202660,000 60,000 
1.40% (1)
August 202955,000 55,000 
5.65%December 2032350,000 350,000 
6.60%January 2034100,000 100,000 
6.05%October 2036158,800 158,800 
6.60%June 2037165,000 165,000 
4.875%November 2041140,000 140,000 
4.65%June 2043170,000 170,000 
4.50%June 2044130,000 130,000 
4.70%September 2045260,000 260,000 
4.05%May 2046350,000 350,000 
4.875%November 2048105,000 105,000 
5.70%April 2054650,000 — 
Unamortized discount – net(8,150)(6,449)
Deferred financing costs (25,770)(19,058)
Total AES Indiana first mortgage bonds2,769,880 2,128,293 
Total long-term debt – AES Indiana
2,769,880 2,128,293 
Long-term debt – IPALCO:
  
3.70% Senior Secured Notes
September 2024— 405,000 
4.25% Senior Secured Notes
May 2030475,000 475,000 
5.75% Senior Secured Notes
April 2034400,000 — 
Unamortized discount – net(1,353)(319)
Deferred financing costs (8,490)(4,554)
Total long-term debt – IPALCO
865,157 875,127 
Total consolidated IPALCO long-term debt
3,635,037 3,003,420 
Less: current portion of long-term debt
80,000 445,000 
Net consolidated IPALCO long-term debt
$3,555,037 $2,558,420 
(1)First mortgage bonds issued to the Indiana Finance Authority, to secure the loan of proceeds from tax-exempt bonds issued by the Indiana Finance Authority.
(2)First mortgage bonds issued to the Indiana Finance Authority, to secure the loan of proceeds from tax-exempt bonds issued by the Indiana Finance Authority. The notes have a final maturity date of December 31, 2038, but are subject to a mandatory put in April 2026.

Line of Credit

As of September 30, 2024 and December 31, 2023, AES Indiana had $50.0 million and $155.0 million in outstanding borrowings on the committed Credit Agreement, respectively.

Significant Transactions

AES Indiana First Mortgage Bonds and AES Indiana Term Loans

In August 2024, AES Indiana entered into an unsecured $400 million 364-day term loan agreement ("$400 million Term Loan Agreement"), which can be drawn in two tranches. AES Indiana drew $300 million at closing and drew the remaining $100 million in October 2024, with the proceeds being used for general corporate purposes. This agreement matures on August 13, 2025, and bears interest at variable rates as described in the $400 million Term
Loan Agreement. The $400 million Term Loan Agreement contains customary representations, warranties and covenants, including a leverage covenant consistent with the leverage covenant contained in AES Indiana's Credit Agreement. AES Indiana has classified the $400 million Term Loan Agreement, including the $300 million outstanding as of September 30, 2024, as short-term indebtedness as it matures August 2025. Management plans to repay the $400 million Term Loan Agreement through a combination of funds from debt financings and parent equity capital contributions.

In March 2024, AES Indiana issued $650 million aggregate principal amount of first mortgage bonds, 5.70% Series, due April 2054, pursuant to Rule 144A and Regulation S under the Securities Act. The net proceeds from this offering of approximately $640.5 million, after deducting the initial purchasers’ discounts and fees and expenses for the offering, were used to repay the $300 million Term Loan Agreement, outstanding borrowings on the Credit Agreement and for general corporate purposes.

IPALCO’s Senior Secured Notes

In March 2024, IPALCO completed the sale of the 2034 IPALCO Notes pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The net proceeds from this offering of $394.0 million, together with cash on hand, were used to redeem the 2024 IPALCO Notes on April 13, 2024, and to pay certain related fees and expenses.

Pursuant to a registration rights agreement dated March 14, 2024, IPALCO agreed to register the 2034 IPALCO Notes under the Securities Act by filing an exchange offer registration statement or, under specified circumstances, a shelf registration statement with the SEC. IPALCO filed a registration statement on Form S-4 with respect to the 2034 IPALCO Notes with the SEC on May 28, 2024 in respect of its obligations under such registration rights agreement, and this registration statement was declared effective on June 6, 2024. The exchange offer closed on July 12, 2024.

Other

In February 2024, AES Indiana received a $92 million short-term loan from AES. This loan was fully repaid in March 2024.

AES Indiana’s mortgage and deed of trust secures first mortgage bonds issued by AES Indiana. Pursuant to the terms of the mortgage and deed of trust, substantially all property owned by AES Indiana is subject to a direct first mortgage lien. In addition, IPALCO’s outstanding debt obligations are secured by its pledge of all of the outstanding common stock of AES Indiana.