
	Interest		March 31,		December 31,
$ in millions	Rate	Maturity	2022		2021
First Mortgage Bonds	3.95%	2049	$	425.0	$	425.0
First Mortgage Bonds	3.20%	2040	140.0		140.0
U.S. Government note	4.20%	2061	17.1		17.2
Unamortized deferred financing costs			(5.3)		(5.4)
Unamortized debt discounts, net			(2.5)		(2.5)
Total long-term debt at AES Ohio			574.3		574.3

Senior unsecured bonds	4.125%	2025	415.0		415.0
Senior unsecured bonds	4.35%	2029	400.0		400.0
Note to DPL Capital Trust II (a)	8.125%	2031	15.6		15.6
Unamortized deferred financing costs			(8.1)		(8.6)
Unamortized debt discounts, net			(0.8)		(0.8)
Total long-term debt			1,396.0		1,395.5
Less: current portion			(0.2)		(0.2)
Long-term debt, net of current portion			$	1,395.8	$	1,395.3

(a)Note payable to related party.

Lines of credit

As of March 31, 2022 and December 31, 2021, the DPL Credit Agreement had outstanding borrowings of $65.0 million and $65.0 million, respectively. As of March 31, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings of $75.0 million and $0.0 million, respectively.

Significant transactions

DPL Inc. agreed to register the 2025 DPL Inc. Senior Unsecured Bonds under the Securities Act by filing an exchange offer registration statement or, under specified circumstances, a shelf registration statement with the SEC pursuant to a Registration Rights Agreement dated June 19, 2020. DPL Inc. filed a registration statement on Form S-4 with respect to the 2025 DPL Inc. Senior Unsecured Bonds with the SEC on March 15, 2021, and this registration statement was declared effective on March 31, 2021. The exchange offer closed on May 5, 2021.

Long-term debt covenants and restrictions

The DPL Credit Agreement has two financial covenants. The first financial covenant, a minimum EBITDA, calculated at the end of each fiscal quarter for the four prior fiscal quarters of $125.0 million is required, stepping up to $130.0 million on September 30, 2022 and $150.0 million on December 31, 2022. As of March 31, 2022, DPL was in compliance with this financial covenant.

The second financial covenant is an EBITDA to Interest Expense ratio that is calculated, at the end of each fiscal quarter, by dividing EBITDA for the four prior fiscal quarters by the consolidated interest charges for the same period. The ratio, per the agreement, is to be not less than 1.70 to 1.00, and steps up to 1.75 to 1.00 on September 30, 2022 and 2.00 to 1.00 as of December 31, 2022. As of March 31, 2022, DPL Inc. was in compliance with this financial covenant.

The DPL Credit Agreement also restricts dividend payments from DPL Inc. to AES, such that DPL cannot make dividend payments unless at the time of, and/or as a result of the distribution, (i) DPL Inc.’s leverage ratio does not exceed 0.67 to 1.00 and DPL’s interest coverage ratio is not less than 2.50 to 1.00 or, if such ratios are not within the parameters, (ii) DPL’s senior long-term debt rating from two of the three major credit rating agencies is at least investment grade. As a result, as of March 31, 2022, DPL Inc. was prohibited from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries).

Starting with the quarter ended September 30, 2021, the borrowing limit on the DPL Inc. Credit Agreement will be reduced by $5.0 million per quarter should the Total Debt to EBITDA ratio for the period of four consecutive quarters exceed 7.00 to 1.00. As of March 31, 2022, DPL Inc. exceeded this ratio and the borrowing limit was reduced from $100.0 million to $95.0 million.

The AES Ohio Credit Agreement and Bond Purchase Agreement (financing document entered into in connection with the issuance of AES Ohio's First Mortgage Bonds, on July 31, 2020) has one financial covenant. The covenant measures Total Debt to Total Capitalization and is calculated, at the end of each fiscal quarter, by dividing total debt at the end of the quarter by total capitalization at the end of the quarter. AES Ohio’s Total Debt to Total Capitalization ratio shall not be greater than 0.67 to 1.00. As of March 31, 2022, AES Ohio was in compliance with this financial covenant.

As of March 31, 2022, DPL and AES Ohio were in compliance with all debt covenants, including the financial covenants described above.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL Inc.

Substantially all property, plant & equipment of AES Ohio is subject to the lien of the mortgage securing AES Ohio’s First and Refunding Mortgage.

Forecast [Member]

Debt Instrument [Line Items]

Debt Covenant, Interest Coverage Ratio, Minimum

2.00

1.75

Debt Instrument, Debt Covenant, EBITDA to Interest Expense, EBITDA Minimum

$ 150.0

$ 130.0

Subsidiaries [Member]

Debt Instrument [Line Items]

Unamortized deferred finance costs

$ (5.3)

(5.4)

Unamortized debt discounts, net

(2.5)

Total long-term debt at subsidiary

574.3

Total long-term debt

574.3

Less: current portion

(0.2)

Long-term debt

574.1

Long-term Line of Credit

$ 75.0

0.0

Long-term Debt

Long-term debt is as follows:


	Interest			March 31,		December 31,
$ in millions	Rate		Maturity	2022		2021
First Mortgage Bonds	3.95	%	2049	$	425.0	$	425.0
First Mortgage Bonds	3.20	%	2040	140.0		140.0
U.S. Government note	4.20	%	2061	17.1		17.2
Unamortized deferred financing costs				(5.3)		(5.4)
Unamortized debt discounts, net				(2.5)		(2.5)
Total long-term debt				574.3		574.3
Less: current portion				(0.2)		(0.2)
Long-term debt, net of current portion				$	574.1	$	574.1

Line of credit

As of March 31, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings on its line of credit of $75.0 million and $0.0 million, respectively.

Long-term debt covenants and restrictions

As of March 31, 2022, AES Ohio was in compliance with all debt covenants, including the financial covenants described above.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL Inc.

Substantially all property, plant & equipment of AES Ohio is subject to the lien of the mortgage securing AES Ohio’s First and Refunding Mortgage.

3.95% Senior Notes due 2049 [Member] | Subsidiaries [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Effective Percentage

3.95%

Long-term Debt, Gross

$ 425.0

425.0

DPL Revolving Credit Agreement and Term Loan Maturing July 2020 [Member]

Debt Instrument [Line Items]

Debt Covenant, Interest Coverage Ratio, Minimum

2.50