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Debt Obligations

3 Months Ended

Mar. 31, 2020

Long-term Debt

The following table summarizes DPL's long-term debt.



	Interest		March 31,			December 31,
$ in millions	Rate	Maturity	2020			2019
First Mortgage Bonds	3.95%	2049	$	425.0		$	425.0
Tax-exempt First Mortgage Bonds - rates from 2.40% - 2.93% (a) and 1.29% - 1.42% (b)		2020	140.0			140.0
U.S. Government note	4.20%	2061	17.5			17.5
Unamortized deferred financing costs			(5.3		)	(5.4		)
Unamortized debt discounts and premiums, net			(2.7		)	(2.7		)
Total long-term debt at DP&L			574.5			574.4

Senior unsecured bonds	7.25%	2021	380.0			380.0
Senior unsecured bonds	4.35%	2029	400.0			400.0
Note to DPL Capital Trust II (c)	8.125%	2031	15.6			15.6
Unamortized deferred financing costs			(5.5		)	(5.9		)
Unamortized debt discounts and premiums, net			(1.0		)	(1.0		)
Total long-term debt			1,363.6			1,363.1
Less: current portion			(139.9		)	(139.8		)
Long-term debt, net of current portion			$	1,223.7		$	1,223.3


(a)	Range of interest rates for the three months ended March 31, 2020.


(b)	Range of interest rates for the year ended December 31, 2019.


(c)	Note payable to related party.

Lines of credit

At March 31, 2020 and December 31, 2019, DPL had outstanding borrowings on its line of credit of $94.0 million and $104.0 million, respectively. At March 31, 2020 and December 31, 2019, DP&L had outstanding borrowings on its line of credit of $85.0 million and $40.0 million, respectively.

Long-term debt covenants and restrictions

DPL’s revolving credit agreement has 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 ratio in the agreement is not to exceed 7.00 to 1.00. As of March 31, 2020, this financial covenant was met with a ratio of 6.75 to 1.00.

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 2.25 to 1.00. As of March 31, 2020, this financial covenant was met with a ratio of 3.01 to 1.00.

DPL’s secured revolving credit agreement also restricts dividend payments from DPL to AES, such that DPL cannot make dividend payments unless at the time of, and/or as a result of the distribution, (i) DPL’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, 2020, DPL was prohibited from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries).

DP&L’s Bond Purchase and Covenants Agreement (financing document entered into in connection with the sale of our variable rate tax-exempt First Mortgage Bonds, dated as of August 1, 2015) has two financial covenants. The first 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. DP&L’s Total Debt to Total Capitalization ratio shall not be greater than 0.65 to 1.00; except that the ratio is suspended as DP&L’s long-term indebtedness is less than or equal to $750.0 million. This financial covenant was met with a ratio of 0.58 to 1.00 as of March 31, 2020.

The second financial covenant measures EBITDA to Interest Expense. The Total Consolidated EBITDA to Consolidated Interest Charges ratio is calculated, at the end of each fiscal quarter, by dividing consolidated 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 2.50 to 1.00. This financial covenant was met with a ratio of 7.83 to 1.00 as of March 31, 2020.

DP&L's unsecured revolving credit facility 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. DP&L’s Total Debt to Total Capitalization ratio shall not be greater than 0.67 to 1.00. This financial covenant was met with a ratio of 0.58 to 1.00 as of March 31, 2020.

As of March 31, 2020, DPL and DP&L were in compliance with all debt covenants, including the financial covenants described above.

DP&L does not have any meaningful restrictions in its debt financing documents prohibiting dividends to its parent, DPL.

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

THE DAYTON POWER AND LIGHT COMPANY [Member]

Debt Instrument [Line Items]

Debt Obligations

Long-term Debt

The following table summarizes DP&L's long-term debt.



	Interest		March 31,			December 31,
$ in millions	Rate	Maturity	2020			2019
First Mortgage Bonds	3.95%	2049	$	425.0		$	425.0
Tax-exempt First Mortgage Bonds - rates from 2.40% - 2.93% (a) and 1.29% - 1.42% (b)		2020	140.0			140.0
U.S. Government note	4.20%	2061	17.5			17.5
Unamortized deferred financing costs			(5.3		)	(5.4		)
Unamortized debt discounts and premiums, net			(2.7		)	(2.7		)
Total long-term debt			574.5			574.4
Less: current portion			(139.9		)	(139.8		)
Long-term debt, net of current portion			$	434.6		$	434.6


(a)	Range of interest rates for the three months ended March 31, 2020.


(b)	Range of interest rates for the year ended December 31, 2019.

Line of credit

At March 31, 2020 and December 31, 2019, DP&L had outstanding borrowings on its line of credit of $85.0 million and $40.0 million, respectively.

Long-term debt covenants and restrictions

The second financial covenant measures EBITDA to Interest Expense. The Total EBITDA to Interest Charges ratio is calculated, at the end of each fiscal quarter, by dividing EBITDA for the four prior fiscal quarters by the interest charges for the same period. The ratio, per the agreement, is to be not less than 2.50 to 1.00. This financial covenant was met with a ratio of 7.83 to 1.00 as of March 31, 2020.

As of March 31, 2020, DP&L was in compliance with all debt covenants, including the financial covenants described above.

DP&L does not have any meaningful restrictions in its debt financing documents prohibiting dividends to its parent, DPL.

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