NOTES PAYABLE AND CREDIT AGREEMENTS

Short-term cash requirements outside of the Utilities have generally been funded by Spire or met with internally generated funds. At September 30, 2016, Spire had a $150.0 syndicated line of credit from nine banks maturing on September 3, 2019, with the largest portion provided by a single bank being 15.6%. The line of credit has a covenant limiting the total debt of the consolidated Spire to no more than 70% of the Company’s total capitalization. As defined in the line of credit, this ratio was 58.5% on September 30, 2016. Spire’s line may be used to provide for the funding needs of various subsidiaries. The maturity date of the loan agreement is September 3, 2019.

The Utilities’ short-term borrowing requirements typically peak during the colder months while the Company’s needs are less seasonal. These short-term cash requirements can be met through the sale of commercial paper supported by lines of credit with banks or through direct use of the lines of credit. At September 30, 2016, Laclede Gas had a syndicated line of credit of $450.0 in place from ten banks. The largest portion provided by a single bank is 15.6%. Laclede Gas’ line of credit includes a covenant limiting total debt, including short-term debt, to no more than 70% of total capitalization. As defined in the line of credit, on September 30, 2016 total debt was 49.7% of total capitalization. Laclede Gas’ commercial paper program is backed by the line of credit. The maturity date of the line of credit is September 3, 2019.

On September 2, 2014, Alagasco entered into a new $150.0 syndicated line of credit with twelve banks and extinguished the line that was in place prior to its acquisition by Spire. The largest portion provided by a single bank is 10%. The line of credit, which matures on September 2, 2019, has a covenant limiting total debt to no more than 70% of Alagasco’s total capitalization. As defined in the line of credit, this ratio stood at 27.8% on September 30, 2016.

Spire

Information about Spire’s short-term borrowings (excluding intercompany borrowings) during the twelve months ended September 30, and as of September 30, is presented below for 2016 and 2015:



	Laclede Gas Commercial Paper Borrowings	Spire Bank Line Borrowings*	Alagasco Bank Line Borrowings	Total Short-Term Borrowings
Year Ended September 30, 2016
Weighted average borrowings outstanding	$201.0	$42.7	$30.2	$273.9
Weighted average interest rate	0.7%	1.6%	1.4%	0.9%
Range of borrowings outstanding	$43.0 - $307.2	$0.0 - $82.0	$0.0 - $82.0	$73.1 - $427.2
As of September 30, 2016
Borrowings outstanding at end of period	$243.7	$73.0	$82.0	$398.7
Weighted average interest rate	0.8%	1.8%	1.5%	1.1%
Year Ended September 30, 2015
Weighted average borrowings outstanding	$212.7	$65.6	$22.3	$300.6
Weighted average interest rate	0.4%	1.4%	1.1%	0.7%
Range of borrowings outstanding	$ 102.1 - $341.0	$32.5 - $80.0	$0.0 - $69.5	$180.1 - $488.5
As of September 30, 2015
Borrowings outstanding at end of period	$233.0	$74.0	$31.0	$338.0
Weighted average interest rate	0.5%	1.5%	1.2%	0.8%

* Spire Inc., excluding its wholly owned subsidiaries.

Based on average short-term borrowings for the twelve months ended September 30, 2016, an increase in the average interest rate of 100 basis points would decrease Spire’s pre-tax earnings and cash flows by approximately $2.7 on an annual basis, portions of which may be offset through the application of PGA or GSA carrying costs.

Laclede Gas

Information about Laclede Gas’ short-term borrowings during the twelve months ended September 30, and as of September 30, is presented below for 2016 and 2015:



	Commercial Paper Borrowings	Borrowings from Spire	Total Short-Term Borrowings

Year Ended September 30, 2016
Weighted average borrowings outstanding	$201.0	$14.7	$215.7
Weighted average interest rate	0.7%	0.8%	0.7%
Range of borrowings outstanding	$43.0 - $307.2	$0.0 - $114.2	$127.8 - $ 307.2
As of September 30, 2016
Borrowings outstanding at end of period	$243.7	$—	$243.7
Weighted average interest rate	0.8%	—%	0.8%
Year Ended September 30, 2015
Weighted average borrowings outstanding	$212.7	$0.3	$213.0
Weighted average interest rate	0.4%	0.5%	0.4%
Range of borrowings outstanding	$102.1 - $341.0	$0.0 - $10.4	$104.2 - $ 341.0
As of September 30, 2015
Borrowings outstanding at end of period	$233.0	$—	$233.0
Weighted average interest rate	0.5%	—%	0.5%

Based on average short-term borrowings for the twelve months ended September 30, 2016, an increase in the average interest rate of 100 basis points would decrease Laclede Gas’ pre-tax earnings and cash flows by approximately $2.2 on an annual basis, portions of which may be offset through the application of PGA carrying costs.

Alagasco

Information about Alagasco’s short-term borrowings during the twelve months ended September 30, and as of September 30, is presented below for 2016 and 2015:



	Bank Line Borrowings	Borrowings from Spire	Total Short-Term Borrowings

Year Ended September 30, 2016
Weighted average borrowings outstanding	$30.2	$12.4	$42.6
Weighted average interest rate	1.4%	1.4%	1.4%
Range of borrowings outstanding	$0.0 - $82	$0.0 - $61.9	$19.0 - $82.0
As of September 30, 2016
Borrowings outstanding at end of period	$82.0	$—	$82.0
Weighted average interest rate	1.5%	—%	1.5%
Year Ended September 30, 2015
Weighted average borrowings outstanding	$22.3	$—	$22.3
Weighted average interest rate	1.1%	—%	1.1%
Range of borrowings outstanding	$0.0 - $69.5	0	$0.0- $69.5
As of September 30, 2015
Borrowings outstanding at end of period	$31.0	$—	$31.0
Weighted average interest rate	1.2%	—%	1.2%

Based on average short-term borrowings for the twelve months ended September 30, 2016, an increase in the average interest rate of 100 basis points would decrease Alagasco’s pre-tax earnings and cash flows by approximately $0.4 on an annual basis, portions of which may be offset through the application of GSA carrying costs.