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Debt Obligations
 3 Months Ended
Mar. 31, 2017
Debt Instrument [Line Items]  
Debt Obligations
Debt

The following table provides a summary of DPL's outstanding debt.
 
 
Interest
 
 
 
March 31,
 
December 31,
$ in millions
 
Rate
 
Maturity
 
2017
 
2016
Term loan - rates from 4.01% - 4.04% (a) and 4.00% - 4.01% (b)
 
 
 
2022
 
$
443.9

 
$
445.0

Tax-exempt First Mortgage Bonds
 
4.8%
 
2036
 
100.0

 
100.0

Tax-exempt First Mortgage Bonds - rates from 1.52% - 1.53% (a) and 1.29% - 1.42% (b)
 
 
 
2020
 
200.0

 
200.0

U.S. Government note
 
4.2%
 
2061
 
17.9

 
18.0

Capital leases
 
 
 
 
 
0.4

 
0.4

Unamortized deferred financing costs
 
 
 
 
 
(10.1
)
 
(10.7
)
Unamortized debt discount and premiums, net
 
 
 
 
 
(5.3
)
 
(5.5
)
Total long-term debt at consolidated subsidiary
 
 
 
 
 
746.8

 
747.2

 
 
 
 
 
 
 
 
 
Bank term loan - rates from 3.02% - 3.73% (a) and 2.67% - 3.02% (b)
 
 
 
2020
 
118.8

 
125.0

Senior unsecured notes
 
6.75%
 
2019
 
200.0

 
200.0

Senior unsecured notes
 
7.25%
 
2021
 
780.0

 
780.0

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

 
15.6

Unamortized deferred financing costs
 
 
 
 
 
(8.4
)
 
(8.8
)
Unamortized debt discounts and premiums, net
 
 
 
 
 
(0.8
)
 
(0.6
)
Total long-term debt
 
 
 
 
 
1,852.0

 
1,858.4

Less: current portion
 
 
 
 
 
(29.7
)
 
(29.7
)
Long-term debt, net of current portion
 
 
 
 
 
$
1,822.3

 
$
1,828.7



(a)
Range of interest rates for the three months ended March 31, 2017.
(b)
Range of interest rates for the year ended December 31, 2016.
(c)
Note payable to related party. See Note 11 – Related Party Transactions for additional information.

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

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 ratio compares EBITDA to Interest Expense and 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.

On February 21, 2017, DP&L and its lenders amended DP&L’s revolving credit agreement and Bond Purchase and Covenant Agreement. These amendments modified the definition of Consolidated Net Worth (which is used for measuring the Total Debt to Total Capitalization ratio under each of the agreements), to exclude, through March 31, 2018, non-cash charges related directly to impairments of coal generation assets in DP&L's fiscal quarter ending December 31, 2016 and thereafter. With this amendment, DP&L’s Total Debt to Total Capitalization ratio for the period ending March 31, 2017 is 0.53 to 1.00. The amendment also changed, for each amendment, the dates after generation separation during which compliance with the Total Capitalization ratio detailed above shall be suspended if long-term indebtedness, as determined by the PUCO, is less than or equal to $750.0 million. As noted above this time period previously was January 1, 2017 to December 31, 2017, and is now the twelve months immediately subsequent to the separation of the generation assets from DP&L.

The cost of borrowing under DP&L's unsecured revolving credit agreement and Bond Purchase and Covenants Agreement adjust under certain credit rating scenarios.

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.

As of March 31, 2017, DP&L and DPL were in compliance with all debt covenants, including the financial covenants described above.

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
Debt

The following table provides a summary of DP&L's outstanding debt.
 
 
Interest
 
 
 
March 31,
 
December 31,
$ in millions
 
Rate
 
Maturity
 
2017
 
2016
Term loan - rates from 4.01% - 4.04% (a) and 4.00% - 4.01% (b)
 
 
 
2022
 
$
443.9

 
$
445.0

Tax-exempt First Mortgage Bonds
 
4.8%
 
2036
 
100.0

 
100.0

Tax-exempt First Mortgage Bonds - rates from 1.52% - 1.53% (a) and 1.29% - 1.42% (b)
 
 
 
2020
 
200.0

 
200.0

U.S. Government note
 
4.2%
 
2061
 
17.9

 
18.0

Capital leases
 
 
 
 
 
0.4

 
0.4

Unamortized deferred financing costs
 
 
 
 
 
(11.5
)
 
(11.8
)
Unamortized debt discount
 
 
 
 
 
(2.0
)
 
(2.2
)
Total long-term debt
 
 
 
 
 
748.7

 
749.4

Less: current portion
 
 
 
 
 
(4.7
)
 
(4.7
)
Long-term debt, net of current portion
 
 
 
 
 
$
744.0

 
$
744.7



(a)Range of interest rates for the three months ended March 31, 2017.
(b)Range of interest rates for the year ended December 31, 2016.

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

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 and 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.

On February 21, 2017, DP&L and its lenders amended DP&L’s revolving credit agreement and Bond Purchase and Covenant Agreement. These amendments modified the definition of Consolidated Net Worth (which is used for measuring the Total Debt to Total Capitalization ratio under each of the agreements), to exclude, through March 31, 2018, non-cash charges related directly to impairments of coal generation assets in DP&L's fiscal quarter ending December 31, 2016 and thereafter. With this amendment, DP&L’s Total Debt to Total Capitalization ratio for the period ending March 31, 2017 is 0.53 to 1.00. The amendment also changed, for each amendment, the dates after generation separation during which compliance with the Total Capitalization ratio detailed above shall be suspended if long-term indebtedness, as determined by the PUCO, is less than or equal to $750.0 million. As noted above this time period previously was January 1, 2017 to December 31, 2017, and is now the twelve months immediately subsequent to the separation of the generation assets from DP&L.

As of March 31, 2017, DP&L was in compliance with all debt covenants, including the financial covenants described above.

The cost of borrowing under DP&L's unsecured revolving credit agreement and Bond Purchase and Covenants Agreement adjusts under certain credit rating scenarios.

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