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Debt Obligations
 3 Months Ended
Mar. 31, 2016
Debt Instrument [Line Items]  
Debt Obligations
Note 5 – Debt

 
 
Interest
 
 
 
March 31,
 
December 31,
$ in millions
 
Rate
 
Maturity
 
2016
 
2015
First mortgage bonds
 
1.875%
 
2016
 
$
445.0

 
$
445.0

Pollution control series
 
4.8%
 
2036
 
100.0

 
100.0

Pollution control series - rates from 1.29% - 1.30% and 1.13% - 1.17% (a)
 
 
 
2020
 
200.0

 
200.0

U.S. Government note
 
4.2%
 
2061
 
18.0

 
18.1

Unamortized deferred financing costs
 
 
 
 
 
(4.2
)
 
(5.0
)
Unamortized debt discount and premiums, net
 
 
 
 
 
(3.5
)
 
(3.6
)
Total long-term debt at subsidiary
 
 
 
 
 
755.3

 
754.5

 
 
 
 
 
 
 
 
 
Bank term loan - rates from 2.67% - 2.69% and 2.44% - 2.67% (a)
 
 
 
2020
 
125.0

 
125.0

Senior unsecured bonds
 
6.5%
 
2016
 
57.0

 
130.0

Senior unsecured bonds
 
6.75%
 
2019
 
200.0

 
200.0

Senior unsecured bonds
 
7.25%
 
2021
 
780.0

 
780.0

Note to DPL Capital Trust II (b)
 
8.125%
 
2031
 
15.6

 
15.6

Unamortized deferred financing costs
 
 
 
 
 
(10.4
)
 
(11.1
)
Unamortized debt discounts and premiums, net
 
 
 
 
 
(0.6
)
 
(0.7
)
Total long-term debt
 
 
 
 
 
1,921.9

 
1,993.3

Less: current portion
 
 
 
 
 
(507.0
)
 
(572.8
)
Total long-term debt
 
 
 
 
 
$
1,414.9

 
$
1,420.5



(a)
Range of interest rates for the three months ended March 31, 2016 and the twelve months ended December 31, 2015, respectively.
(b)
Note payable to related party. See Note 9 – Related Party Transactions for additional information.

Premiums or discounts recognized at the date of the Merger are amortized over the remaining life of the debt using the effective interest method.

Significant transactions
On February 5, 2016, $73.0 million of DPL's $130.0 million 6.5% Senior Unsecured Notes Due 2016 were redeemed under the indenture's make-whole call provision, which allows for the bonds to be called prior to maturity with a make-whole payment as determined by discounting the bond's future cash flow by a similarly maturing U.S. Treasury bond's yield plus 50 basis points. On the call date, principal plus the make-whole payment due totaled $75.4 million, which was paid with cash on hand.

Debt covenants and restrictions
DP&L’s unsecured revolving credit agreement and Bond Purchase and Covenants Agreement have two financial covenants. The first financial covenant measures Total Debt to Total Capitalization. The Total Debt to Total Capitalization ratio 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. The second financial covenant ratio compares EBITDA to Interest Expense. The EBITDA to Interest Expense ratio 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.

DPL’s revolving credit agreement and term loan have 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 second financial covenant, an EBITDA to Interest Expense ratio, 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 cost of borrowing under DPL's revolving credit agreement and term loan adjust under certain credit rating scenarios. DPL’s revolving credit agreement, term loan, and senior unsecured notes due 2019 restrict dividend payments from DPL to AES.

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
Note 5 – Debt

 
 
Interest
 
 
 
March 31,
 
December 31,
$ in millions
 
Rate
 
Maturity
 
2016
 
2015
First mortgage bonds
 
1.875%
 
2016
 
$
445.0

 
$
445.0

Pollution control series
 
4.8%
 
2036
 
100.0

 
100.0

Pollution control series - rates from 1.29% - 1.30% and 1.13% - 1.17% (a)
 
 
 
2020
 
200.0

 
200.0

U.S. Government note
 
4.2%
 
2061
 
18.0

 
18.1

Unamortized deferred financing costs
 
 
 
 
 
(5.4
)
 
(6.2
)
Unamortized debt discount
 
 
 
 
 
(0.1
)
 
(0.2
)
Total long-term debt
 
 
 
 
 
$
757.5

 
$
756.7

Less: current portion
 
 
 
 
 
(443.9
)
 
(443.1
)
Total
 
 
 
 
 
$
313.6

 
$
313.6



(a)Range of interest rates for the three months ended March 31, 2016 and the twelve months ended December 31, 2015, respectively.

Debt covenants and restrictions
DP&L’s unsecured revolving credit agreement and Bond Purchase and Covenants Agreement have 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. The second financial covenant measures EBITDA to Interest Expense. The EBITDA to Interest Expense ratio 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.

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