Debt and Credit Facilities

2 Months Ended

Dec. 31, 2016

DEBT AND CREDIT FACILITIES

SUMMARY OF LONG-TERM DEBT

Our long-term debt consists of privately placed senior notes issued under note purchase agreements, as well as publicly issued medium-term and senior notes issued under an indenture. All of our long-term debt is unsecured and is issued at fixed rates. None of our debt is actively traded.

Our long-term debt as of December 31, 2016 and October 31, 2016 is presented below.



(in millions)	December 31, 2016			October 31, 2016
Principal	$	1,835.0		$	1,835.0
Unamortized debt issuance expenses and discounts	(13.9		)	(14.0		)
Total	1,821.1			1,821.0
Less current maturities ⁽¹⁾	35.0			35.0
Total long-term debt	$	1,786.1		$	1,786.0

⁽¹⁾8.51% Senior Notes, due September 30, 2017.

We are subject to default provisions related to our long-term debt and short-term borrowings. Failure to satisfy any of the default provisions may result in total outstanding issues of debt becoming due. There are cross default provisions in all of our debt agreements.

SHELF REGISTRATION

In September 2016, Duke Energy filed a registration statement with the SEC under which it and its registrants, excluding Progress Energy, may issue debt and other securities in the future at amounts, prices and terms to be determined at the time of future offerings. The registration statement is uncapped.

In January 2017, Duke Energy amended its registration statement to add Piedmont as a registrant, and included in the amendment a prospectus for Piedmont under which debt securities may be issued in the same manner as other Duke Energy registrants.

AVAILABLE CREDIT FACILITIES

We have an $850.0 million five-year revolving syndicated credit facility that expires on December 14, 2020 that has an option to request an expansion up to an additional $200.0 million. The facility provides a line of credit for letters of credit of $10.0 million.

We have an $850.0 million unsecured commercial paper (CP) program that is backstopped by the revolving syndicated credit facility. The amounts outstanding under the revolving syndicated credit facility and the CP program, either individually or in the aggregate, cannot exceed $850.0 million.

Our current borrowings and available capacity under our revolving syndicated credit facility as of December 31, 2016 and October 31, 2016 are presented below.



(in millions)	December 31, 2016				October 31, 2016
Facility size	$	850.0			$	850.0
Reduction to backstop issuances
Commercial paper	(330.0		)	⁽¹⁾	(145.0		)	⁽²⁾
Outstanding letters of credit	(1.7		)		(1.7		)
Available capacity	$	518.3			$	703.3

⁽¹⁾Original maturities ranging from 7 to 15 days from their dates of issuance at a weighted average interest rate of .96%.
⁽²⁾Original maturities ranging from 1 to 6 days from their dates of issuance at a weighted average interest rate of .64%.

Other than outstanding CP balances, we did not have any borrowings under the revolving syndicated credit facility for the two months ended December 31, 2016. A summary of the short-term debt activity under our CP program for the two months ended December 31, 2016 is as follows.



(in millions)
Minimum amount outstanding	$	140.0
Maximum amount outstanding	$	330.0
Minimum interest rate	.63		%
Maximum interest rate	1.00		%
Weighted average interest rate	.80		%

Our five-year revolving syndicated credit facility’s financial covenants require us to maintain a ratio of total debt to total capitalization of no greater than 70%, and our actual ratio was 56% at December 31, 2016.