LONG-TERM DEBT

Composition of long-term debt for Laclede Group, Laclede Gas and Alagasco are shown in each registrant's statements of capitalization as part of the financial statements. Maturities of long-term debt for Laclede Group, Laclede Gas and Alagasco for the five fiscal years subsequent to September 30, 2015 are as follows:



	Laclede Group		Laclede Gas		Alagasco
2016	$	80.0	$	—	$	80.0
2017	250.0		—		—
2018	100.0		100.0		—
2019	175.0		50.0		—
2020	40.0		—		40.0

Laclede Group

On August 19, 2014 Laclede Group issued $625.0 aggregate principal amount in long-term debt. Of this, $250.0 were floating rate senior notes with an interest rate of three-month LIBOR + 0.75% per annum maturing in August 2017, $125.0 were senior notes with an interest rate of 2.55% maturing in August 2019, and $250.0 were senior notes with an interest rate of 4.70% maturing in August 2044. The proceeds were used to fund a portion of the Alagasco acquisition.

At September 30, 2015, including the current portion but excluding unamortized discounts and net hedging gains, the Laclede Group had fixed-rate long-term debt totaling $1,603.8 and floating rate long-term debt totaling $250.0, of which $810.0 was issued by Laclede Gas and $250.0 was issued by Alagasco. With the exception of the $250.0 floating rate senior notes issued by Laclede Group, all long-term debt bears fixed rates and is subject to changes in fair value as market interest rates change. However, increases and decreases in fair value would impact earnings and cash flows only if the Company were to reacquire any of these issues in the open market prior to maturity. Under GAAP applicable to the Utilities' regulated operations, losses or gains on early redemption of long-term debt typically would be deferred as regulatory assets or liabilities and amortized over a future period.

Of the Company’s $1,710.0 senior long-term debt, $25.0 have no call options, $710.0 have make-whole call options, $725.0 are callable at par between one to six months prior to maturity and $250.0 are callable at par one year prior to maturity. The remainder of the Company's long-term debt is $143.8 of 2% Remarketable Junior Subordinated Notes due in 2022. None of the debt has put options.

Laclede Group has a shelf registration statement on Form S-3 on file with the SEC for the issuance and sale of up to 168,698 shares on common stock under its Dividend Reinvestment and Direct Stock Purchase Plan. There were 129,413 and 123,889 at September 30, 2015 and November 20, 2015, respectively, remaining available for issuance under this Form S-3. Laclede Group also has a shelf registration statement on Form S-3 on file with the SEC for the issuance of equity and debt securities.

The Company's capitalization at September 30, 2015 consisted of 47.0% of Laclede Group common stock equity and 53.0% long-term debt, compared to 44.9% of Laclede Group common stock equity and 55.1% of long-term debt at September 30, 2014. The decline in the proportion of long-term debt is due primarily to the reclassification of $80.0 of Alagasco long-term debt to "current".

Laclede Gas

On December 6, 2013, Laclede Gas provided a notice of redemption to holders for the entire $80.0 aggregate principal amount outstanding of its previously issued 6.35% Series first mortgage bonds due in 2038. The redemption, which was for cash and included accrued interest, was completed on January 6, 2014.

At September 30, 2015, Laclede Gas had fixed-rate long-term debt, including the current portion, totaling $810.0. While these long-term debt issues are fixed-rate, they are subject to changes in fair value as market interest rates change. Of Laclede Gas' $810.0 in long-term debt, $25.0 have no call options, $435.0 have make-whole call options and $350.0 are callable at par three to six months prior to maturity. None of the debt has any put options.

Laclede Gas has authority from the MoPSC to issue debt securities and preferred stock, including on a private placement basis, as well as to issue common stock, receive paid-in-capital, and enter into capital lease agreements, all for a total of up to $518.0. This authorization was effective through June 30, 2015. On April 15, 2015, Laclede Gas filed with the MoPSC for a new financing authorization. On June 24, 2015, the MoPSC granted an extension of the current authorization until the pending application is resolved. During the year ended September 30, 2015, Laclede Gas issued no securities under this authorization. As of November 20, 2015, $369.7 remains available under this authorization. Laclede Gas has a shelf registration on Form S-3 on file with the SEC for issuance of first mortgage bonds, unsecured debt, and preferred stock, which expires on August 6, 2016. The amount, timing, and type of additional financing to be issued under this shelf registration will depend on cash requirements and market conditions, as well as future MoPSC authorizations. This authorization is more fully described in Note 5, Shareholder's Equity.

Laclede Gas' capitalization at September 30, 2015 consisted of 56.2% of Laclede Gas common stock equity and 43.8% long-term debt compared to 55.5% of Laclede Gas common stock equity and 44.5% of long-term debt at September 30, 2014.

Substantially all of Laclede Gas' plant is subject to the liens of its first mortgage bonds. The mortgage contains several restrictions on Laclede Gas' ability to pay cash dividends on its common stock, which are described more fully in Note 5, Stockholders’ Equity.

Alagasco

Because Alagasco has no standing authority to issue long-term debt, it must petition the APSC for each planned issuance. On November 3, 2014, Alagasco received authorization and approval from the APSC to borrow $35.0 for the purpose of redeeming, without penalty, $34.8 in existing long-term, callable debt financed at 5.7%. Pursuant to a call notice issued on December 15, 2014, Alagasco redeemed $34.8 of debt effective January 15, 2015. On February 3, 2015, Alagasco received authorization and approval from the APSC to borrow $80.0 for the purpose of refinancing the scheduled maturity on December 1, 2015 of $80.0 of existing debt. Pursuant to these authorizations, Alagasco committed to issue $115.0 unsecured notes in the private placement market:$35.0 at a rate of 3.21% for 10 years issued on September 15, 2015, and $80.0 at a rate of 4.31% for 30 years settling December 1, 2015. As of September 30, 2015, the current portion of long-term debt for Alagasco consisted of this $80.0 fixed-rate note maturing December 1, 2015. The Notes are senior unsecured obligations of Alagasco and rank equal in right to payment with all other senior unsecured indebtedness. Alagasco will use the proceeds from the sale of the Notes to refinance existing indebtedness and for general corporate purposes.

At September 30, 2015, Alagasco had fixed-rate long-term debt, including the current portion, totaling $250.0. While these long-term debt issues are fixed-rate, they are subject to changes in fair value as market interest rates change. All of Alagasco's $250.0 in long-term debt has make-whole call options.

Alagasco's capitalization at September 30, 2015 consisted of 83.7% of Alagasco common stock equity and 16.3% long-term debt compared to 77.3% of Alagasco common stock equity and 22.7% of long-term debt at September 30, 2014. The decline in the proportion of long-term debt is due primarily to the reclassification of $80.0 of Alagasco long-term to "current".

Other

Laclede Group's, Laclede Gas' and Alagasco's short-term credit facilities and long-term debt agreements contain customary covenants and default provisions. As of September 30, 2015, there were no events of default under these covenants.

The Company’s, Laclede Gas’, and Alagasco's access to capital markets, including the commercial paper market, and their respective financing costs, may depend on the credit rating of the entity that is accessing the capital markets. The credit ratings of the Company, Laclede Gas and Alagasco remain at investment grade, but are subject to review and change by the rating agencies.

It is management’s view that the Company, Laclede Gas and Alagasco have adequate access to capital markets and will have sufficient capital resources, both internal and external, to meet anticipated capital requirements, which primarily include capital expenditures, interest payments on long-term debt, scheduled maturities of long-term debt, short-term seasonal needs, and dividends.