Debt Obligations

3 Months Ended

Mar. 31, 2015

4. Debt Obligations

Long-term debt



	March 31,		December 31,
$ in millions	2015		2014

First mortgage bonds due in September 2016 - 1.875%	$	445.0	$	445.0
Pollution control series due in January 2028 - 4.7%		35.3		35.3
Pollution control series due in January 2034 - 4.8%		179.1		179.1
Pollution control series due in September 2036 - 4.8%		100.0		100.0
Pollution control series due in November 2040 - rates from: 0.02% - 0.05% and 0.04% - 0.15% (a)		100.0		100.0
U.S. Government note due in February 2061 - 4.2%		18.1		18.1
Unamortized debt discount		(2.8)		(2.8)
Total long-term debt at subsidiary		874.7		874.7

Bank term loan due in May 2018 - rates from: 2.41% - 2.43% and 2.42% - 2.45% (a)		130.0		140.0
Senior unsecured bonds due in October 2016 - 6.5%		130.0		130.0
Senior unsecured bonds due in October 2019 - 6.75%		200.0		200.0
Senior unsecured bonds due in October 2021 - 7.25%		780.0		780.0
Note to DPL Capital Trust II due in September 2031 - 8.125% (b)		15.6		15.6
Unamortized debt discount		(0.7)		(0.7)
Total non-current portion of long-term debt	$	2,129.6	$	2,139.6

Current portion of long-term debt



	March 31,		December 31,
$ in millions	2015		2014

Bank term loan due in May 2018 - rates from: 2.41% - 2.43% and 2.42% - 2.45% (a)	$	30.0	$	20.0
U.S. Government note due in February 2061 - 4.2%		0.1		0.1
Total current portion of long-term debt	$	30.1	$	20.1

(a)Range of interest rates for the three months ended March 31, 2015 and the twelve months ended December 31, 2014, respectively.

(b)Note payable to related party. See Note 1: Related Party Transactions for additional information.

At March 31, 2015, maturities of long-term debt are as follows:



Due within the twelve months ending March 31,
($ in millions)
2016	$	30.1
2017		615.1
2018		40.1
2019		50.2
2020		200.2
Thereafter		1,227.5
Total maturities		2,163.2

Unamortized premiums and discounts		(3.5)
Total long-term debt	$	2,159.7

Premiums or discounts recognized at the date of the Merger are amortized over the remaining life of the debt using the effective interest method.

DP&L has a $300.0 million unsecured revolving credit agreement with a syndicated bank group. This $300.0 million facility has a five-year term expiring on May 10, 2018, a $100.0 million letter of credit sublimit and a feature that provides DP&L the ability to increase the size of the facility by an additional $100.0 million. At March 31, 2015, there were two letters of credit in the amount of $1.4 million outstanding, with the remaining $298.6 million available to DP&L. Fees associated with this letter of credit facility were not material during the three months ended March 31, 2015 or 2014.

DP&L’s unsecured revolving credit agreement and DP&L’s amended standby letters of credit have two financial covenants, the first measures Total Debt to Total Capitalization. The Total Debt to Total Capitalization ratio 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. The second financial covenant ratio compares EBITDA to Interest Expense ratio. The EBITDA to Interest Expense ratio 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.

DPL has a $100.0 million unsecured revolving credit facility. This $100.0 million facility has a $100.0 million letter of credit sublimit and a feature that provides DPL the ability to increase the size of the facility by an additional $50.0 million. This facility has a five year term expiring on May 10, 2018; however, if DPL has not refinanced its senior unsecured bonds due October 2016 before July 15, 2016, then the maturity of this facility shall be July 15, 2016. At March 31, 2015, there was one letter of credit in the amount of $2.3 million outstanding, with the remaining $97.7 million available to DPL. Fees associated with this facility were not material during the three months ended March 31, 2015 or 2014.

DPL’s unsecured revolving credit agreement and unsecured term loan have two financial covenants. The first financial covenant, a Total Debt to EBITDA ratio, is calculated at the end of each fiscal quarter by dividing total debt at the end of the current quarter by consolidated EBITDA for the four prior fiscal quarters. The second financial covenant, an EBITDA to Interest Expense ratio, 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.

DPL’s unsecured revolving credit agreement and unsecured term loan restrict dividend payments from DPL to AES and adjust the cost of borrowing under the facilities under certain credit rating scenarios.

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

DP&L [Member]

Debt Obligations

4. Debt Obligations

Long-term debt



	March 31,		December 31,
$ in millions	2015		2014

First mortgage bonds due in September 2016 - 1.875%		445.0		445.0
Pollution control series due in January 2028 - 4.7%	$	35.3	$	35.3
Pollution control series due in January 2034 - 4.8%		179.1		179.1
Pollution control series due in September 2036 - 4.8%		100.0		100.0
Pollution control series due in November 2040 - rates from: 0.02% - 0.05% and 0.04% - 0.15% (a)		100.0		100.0
U.S. Government note due in February 2061 - 4.2%		18.1		18.1
Unamortized debt discount		(0.4)		(0.5)
Total non-current portion of long-term debt	$	877.1	$	877.0

Current portion of long-term debt



	March 31,		December 31,
$ in millions	2015		2014

U.S. Government note due in February 2061 - 4.2%		0.1	$	0.1
Total current portion of long-term debt	$	0.1	$	0.1

(a) Range of interest rates for the three months ended March 31, 2015 and the twelve months ended December 31, 2014, respectively.

At March 31, 2015, maturities of long-term debt are as follows:



Due within the twelve months ending March 31,
$ in millions
2016	$	0.1
2017		445.1
2018		0.1
2019		0.2
2020		0.2
Thereafter		431.9
		877.6

Unamortized discounts		(0.4)
Total long-term debt	$	877.2

DP&L has a $300.0 million unsecured revolving credit agreement with a syndicated bank group. This $300.0 million facility has a five-year term expiring on May 10, 2018, a $100.0 million letter of credit sublimit and a feature that provides DP&L the ability to increase the size of the facility by an additional $100.0 million. At March 31, 2015, there were two letters of credit in the amount of $1.4 million outstanding, with the remaining $298.6 million available to DP&L. Fees associated with this revolving credit facility were not material during the three months ended March 31, 2015 or 2014.

DP&L’s unsecured revolving credit agreements and DP&L’s standby letter of credit have two financial covenants, the first measures Total Debt to Total Capitalization. The Total Debt to Total Capitalization ratio 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. The second financial covenant compares EBITDA to Interest Expense. The EBITDA to Interest Expense ratio 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.

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