
	Interest		September 30,		December 31,
$ in millions	Rate	Due	2022		2021
AES Ohio debt
First Mortgage Bonds	3.95%	2049	$	425.0	$	425.0
First Mortgage Bonds	3.20%	2040	140.0		140.0
Tax-exempt First Mortgage Bonds (a)	4.25%	2027	100.0		—
Tax-exempt First Mortgage Bonds (b)	4.00%	2027	40.0		—
U.S. Government note	4.20%	2061	17.1		17.2
Unamortized deferred financing costs			(6.8)		(5.4)
Unamortized debt discounts, net			(2.4)		(2.5)
Total long-term debt at AES Ohio			712.9		574.3
DPL Inc. debt
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 (c)	8.125%	2031	15.6		15.6
Unamortized deferred financing costs			(7.1)		(8.6)
Unamortized debt discounts, net			(0.8)		(0.8)
Total DPL consolidated long-term debt			1,535.6		1,395.5
Less: current portion			(0.2)		(0.2)
DPL consolidated long-term debt, net of current portion			$	1,535.4	$	1,395.3

(a)First mortgage bonds issued to the Ohio Air Quality Development Authority, to secure the loan of proceeds from tax-exempt bonds issued by the Ohio Air Quality Development Authority. The bonds have a final maturity date of November 1, 2040 but are subject to a mandatory put in June 2027.

(b)First mortgage bonds issued to the Ohio Air Quality Development Authority, to secure the loan of proceeds from tax-exempt bonds issued by the Ohio Air Quality Development Authority. The bonds have a final maturity date of January 1, 2034 but are subject to a mandatory put in June 2027.

(c)Note payable to related party.

Lines of credit

As of September 30, 2022 and December 31, 2021, the DPL Credit Agreement had outstanding borrowings of $45.0 million and $65.0 million, respectively. As of September 30, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings of $55.0 million and $0.0 million, respectively.

Significant transactions

On June 1, 2022, AES Ohio re-issued $140.0 million of tax-exempt Ohio Air Quality Development Authority (OAQDA) Collateralized Pollution Revenue Refunding Bonds that had been held in trust, Series 2015A&B. AES Ohio re-issued $140.0 million aggregate principal amount of first mortgage bonds to the OAQDA in two series: $100.0 million Series 2015A bonds at an interest rate of 4.25% and $40.0 million Series 2015B at an interest rate of

4.00% to secure the loan of proceeds from these bonds issued by the OAQDA. These bonds are subject to a mandatory put date of June 1, 2027.

DPL 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 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 $130.0 million is required, stepping up to $150.0 million on December 31, 2022. As of September 30, 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 1.75 to 1.00, and steps up to 2.00 to 1.00 as of December 31, 2022. As of September 30, 2022, DPL was in compliance with this financial covenant.

The DPL 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 September 30, 2022, DPL 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 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 September 30, 2022, DPL exceeded this ratio and the borrowing limit was reduced from $90.0 million to $85.0 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 September 30, 2022, AES Ohio was in compliance with this financial covenant.

As of September 30, 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.

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

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

$ 150.0

Subsidiaries [Member]

Debt Instrument [Line Items]

Unamortized deferred finance costs

$ (6.8)

(5.4)

Unamortized debt discounts, net

(2.4)

(2.5)

Total long-term debt at subsidiary

712.9

574.3

Total long-term debt

712.9

574.3

Less: current portion

(0.2)

Long-term debt

712.7

574.1

Long-term Line of Credit

55.0

0.0

Proceeds from Issuance of Long-term Debt

$ 140.0

$ 0.0

Long-term Debt

DEBT

Long-term debt

The following table presents our long-term debt:


	Interest			September 30,		December 31,
$ in millions	Rate		Due	2022		2021
First Mortgage Bonds	3.95	%	2049	$	425.0	$	425.0
First Mortgage Bonds	3.20	%	2040	140.0		140.0
Tax-exempt First Mortgage Bonds (a)	4.25	%	2027	100.0		—
Tax-exempt First Mortgage Bonds (b)	4.00	%	2027	40.0		—
U.S. Government note	4.20	%	2061	17.1		17.2
Unamortized deferred financing costs				(6.8)		(5.4)
Unamortized debt discounts, net				(2.4)		(2.5)
Total long-term debt				712.9		574.3
Less: current portion				(0.2)		(0.2)
Long-term debt, net of current portion				$	712.7	$	574.1

Line of credit

As of September 30, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings on its line of credit of $55.0 million and $0.0 million, respectively.

Significant transactions

Ohio re-issued $140.0 million aggregate principal amount of first mortgage bonds to the OAQDA in two series: $100.0 million Series 2015A bonds at an interest rate of 4.25% and $40.0 million Series 2015B at an interest rate of 4.00% to secure the loan of proceeds from these bonds issued by the OAQDA. These bonds are subject to a mandatory put date of June 1, 2027.

Long-term debt covenants and restrictions

As of September 30, 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.

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