Note 6 - Long-term Debt

12 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Long-Term Debt [Text Block]

6. LONG-TERM DEBT

The composition of long-term debt as of September 30 is shown in the following tables.

	2023			2022
Spire
3.31% Notes Payable, due December 15, 2022	$	—		$	25.0
3.54% Senior Notes, due February 27, 2024		150.0			150.0
0.75% Remarketable Senior Notes, due March 1, 2026		175.0			175.0
3.13% Senior Notes, due September 1, 2026		130.0			130.0
3.93% Senior Notes, due March 15, 2027		100.0			100.0
5.80% Senior Notes, due March 15, 2033		150.0			—
4.70% Senior Notes, due August 15, 2044		250.0			250.0
Total principal of Spire Missouri long-term debt (see below)		1,798.0			1,648.0
Total principal of Spire Alabama long-term debt (see below)		750.0			575.0
Other subsidiaries' long-term debt:
5.00% First Mortgage Bonds, due September 30, 2031		42.0			42.0
2.95% Notes, with annual principal payments through December 2034		117.7			123.9
5.61% First Mortgage Bonds, due October 15, 2037		30.0			—
3.52% First Mortgage Bonds, due September 30, 2049		40.0			40.0
Total principal of long-term debt		3,732.7			3,258.9
Less: Unamortized discounts and debt issuance costs		(22.1	)		(19.2	)
Less: Current portion		(156.6	)		(281.2	)
Long-term debt, excluding current portion	$	3,554.0		$	2,958.5
Spire Missouri
First Mortgage Bonds:
3.40% Series, due August 15, 2023	$	—		$	250.0
Floating Rate Series, due December 2, 2024		300.0			300.0
3.40% Series, due March 15, 2028		45.0			45.0
7.00% Series, due June 1, 2029	19.3			19.3
2.84% Series, due November 15, 2029		275.0			275.0
7.90% Series, due September 15, 2030		30.0			30.0
3.68% Series, due September 15, 2032		50.0			50.0
4.80% Series, due February 15, 2033		400.0			—
6.00% Series, due May 1, 2034		99.3			99.3
6.15% Series, due June 1, 2036		54.5			54.5
4.63% Series, due August 15, 2043		99.9			99.9
4.23% Series, due September 15, 2047		70.0			70.0
3.30% Series, due June 1, 2051		305.0			305.0
4.38% Series, due September 15, 2057		50.0			50.0
Total principal of Spire Missouri long-term debt		1,798.0			1,648.0
Less: Unamortized discounts and debt issuance costs		(12.6	)		(10.3	)
Less: Current portion		—			(250.0	)
Spire Missouri long-term debt, excluding current portion	$	1,785.4		$	1,387.7
Spire Alabama
3.21% Notes, due September 15, 2025	$	35.0		$	35.0
5.32% Notes, due October 15, 2029		90.0			—
2.88% Notes, due December 1, 2029		100.0			100.0
2.04% Notes, due December 15, 2030		150.0			150.0
5.41% Notes, due October 15, 2032		85.0			—
5.90% Notes, due January 15, 2037		45.0			45.0
4.31% Notes, due December 1, 2045		80.0			80.0
3.92% Notes, due January 15, 2048		45.0			45.0
4.64% Notes, due January 15, 2049		90.0			90.0
4.02% Notes, due January 15, 2058		30.0			30.0
Total principal of Spire Alabama long-term debt		750.0			575.0
Less: Unamortized discounts and debt issuance costs		(4.1	)		(3.5	)
Spire Alabama long-term debt, excluding current portion	$	745.9		$	571.5

Spire Missouri's $300.0 of first mortgage bonds due December 2, 2024 are secured equally with all its other first mortgage bonds. Interest is payable quarterly in arrears at a floating rate based on the compounded secured overnight financing rate plus 50 basis points, with a maximum rate of the lesser of 8% or the maximum rate then permitted by applicable law.

Maturities of long-term debt for Spire on a consolidated basis, Spire Missouri and Spire Alabama for the five fiscal years after September 30, 2023 are as follows:

	2024		2025		2026		2027		2028
Spire	$	156.6	$	342.0	$	312.5	$	108.1	$	53.6
Spire Missouri		—		300.0		—		—		45.0
Spire Alabama		—		35.0		—		—		—

The long-term debt agreements of Spire, Spire Missouri and Spire Alabama contain customary financial covenants and default provisions. As of September 30, 2023, there were no events of default under these financial covenants.

Spire

At September 30, 2023, Spire had outstanding principal of long-term debt totaling $3,732.7, of which $1,798.0 was issued by Spire Missouri, $750.0 was issued by Spire Alabama and $229.7 was issued by other subsidiaries. Except for $300.0 of Spire Missouri floating-rate bonds, 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 would typically be deferred as regulatory assets or regulatory liabilities and amortized over a future period. Interest expense shown on Spire’s consolidated statement of income is net of capitalized interest totaling $8.6, $4.5 and $4.4 for the years ended September 30, 2023, 2022 and 2021, respectively.

As indicated in Note 5, Shareholders’ Equity, Spire has a shelf registration statement on Form S-3 on file with the SEC for the issuance of equity and debt securities.

Spire Missouri

At September 30, 2023, Spire Missouri had outstanding principal of long-term debt totaling $1,798.0. Except for $300.0 of floating-rate bonds, all long-term debt bears fixed rates and is subject to changes in fair value as market interest rates change. Interest expense shown on Spire Missouri’s statement of comprehensive income is net of capitalized interest totaling $3.1, $0.6 and $0.2 for the years ended September 30, 2023, 2022 and 2021, respectively.

As indicated in Note 5, Shareholders’ Equity, Spire Missouri has a shelf registration on Form S-3 on file with the SEC for issuance of equity and debt securities, which expires on May 9, 2025. Effective March 5, 2022, Spire Missouri was authorized by the MoPSC to issue conventional term loans, first mortgage bonds, unsecured debt, preferred stock and common stock in an aggregate amount of up to $800.0 for financings placed any time before December 31, 2024. Under this authorization through September 30, 2023, Spire Missouri has issued $79.1 of common stock and $400.0 of first mortgage bonds.

Substantially all of Spire Missouri’s plant is subject to the liens of its first mortgage bonds. The mortgage contains several restrictions on Spire Missouri’s ability to pay cash dividends on its common stock, which are described in Note 5, Shareholders’ Equity.

Spire Alabama

At September 30, 2023, Spire Alabama had outstanding principal of fixed-rate long-term debt totaling $750.0. While these long-term debt issues are fixed-rate, they are subject to changes in fair value as market interest rates change. Interest expense shown on Spire Alabama’s statement of income is net of capitalized interest totaling $2.3, $3.2 and $3.2 for the years ended September 30, 2023, 2022 and 2021, respectively.

Spire Alabama has no standing authority to issue long-term debt and must petition the APSC for each planned issuance.