DEBT

Lines of Credit

Chugach maintains a $50.0 million line of credit with National Rural Utilities Cooperative Finance Corporation (NRUCFC). Chugach did not utilize this line of credit in the nine months ended September 30, 2016. In addition, Chugach did not utilize this line of credit during 2015 and had no outstanding balance at December 31, 2015. The borrowing rate is calculated using the total rate per annum and may be fixed by NRUCFC. The borrowing rate was 2.50 and 2.90 percent at September 30, 2016, and December 31, 2015. The NRUCFC Revolving Line Of Credit Agreement requires that Chugach, for each 12-month period, for a period of at least five consecutive days, pay down the entire outstanding principal balance. The NRUCFC line of credit expires October 12, 2017. This line of credit is immediately available for unconditional borrowing.

Commercial Paper

Chugach maintained a $100.0 million Amended Unsecured Credit Agreement, which was used to back Chugach’s commercial paper program. The pricing included an all-in drawn spread of one month London Interbank Offered Rate (LIBOR) plus 107.5 basis points, along with a 17.5 basis points facility fee (based on an A- unsecured debt rating). The Amended Unsecured Credit Agreement was due to expire on November 17, 2016. The participating banks included NRUCFC, KeyBank National Association, Bank of America, N.A., Bank of Montreal, CoBank, ACB, and Chang Hwa Commercial Bank, Ltd., Los Angeles Branch.

On June 13, 2016, Chugach entered into a $150.0 million senior unsecured credit facility, the Credit Agreement, which is used to back Chugach’s commercial paper program. The pricing includes an all-in drawn spread of one month LIBOR plus 90.0 basis points, along with a 10.0 basis points facility fee (based on an A/A2/A unsecured debt rating). The new Credit Agreement will expire on June 13, 2021. The participating banks include NRUCFC, KeyBank National Association, Bank of America, N.A., and CoBank, ACB. The commercial paper can be repriced between one day and 270 days.

Chugach expects to continue issuing commercial paper in 2016, as needed. Chugach had $65.2 million and $20.0 million of commercial paper outstanding at September 30, 2016, and December 31, 2015, respectively.

The following table provides information regarding average commercial paper balances outstanding for the quarters ended September 30, 2016, and 2015 (dollars in millions), as well as corresponding weighted average interest rates:



2016				2015
Average Balance		Weighted Average Interest Rate		Average Balance		Weighted Average Interest Rate
$	53.8	0.65	%	$	13.8	0.25	%

Term Loans

Chugach had a term loan facility with CoBank, evidenced by the 2011 CoBank Note, which was governed by the Amended and Restated Master Loan Agreement dated January 19, 2011, and secured by the Second Amended and Restated Indenture (Indenture). On July 13, 2016, Chugach used commercial paper to pay off the $22.2 million balance and therefore had no outstanding balance at September 30, 2016. Chugach had $24.9 million outstanding on this facility at December 31, 2015.

On June 30, 2016, Chugach entered into another term loan facility with CoBank, evidenced by the 2016 CoBank Note, which is governed by the Second Amended and Restated Master Loan Agreement dated June 30, 2016, and secured by the Indenture. Chugach had $44.7 million outstanding on this facility at September 30, 2016.

Debt Issuance Costs

The following table outlines debt issuance costs associated with long-term obligations, excluding current installments, at September 30, 2016.



	Long-term Obligations		Unamortized Debt Issuance Costs
2011 Series A Bonds	$	210,999,998	$	1,381,052
2012 Series A Bonds		194,250,000		1,128,965
2016 CoBank Note		41,154,000		266,877
	$	446,403,998	$	2,776,894

The following table outlines debt issuance costs associated with long-term obligations, excluding current installments, at December 31, 2015.



	Long-term Obligations		Unamortized Debt Issuance Costs
2011 Series A Bonds	$	221,666,665	$	1,482,791
2012 Series A Bonds		205,000,000		1,198,106
2011 CoBank Note		22,241,852		0
	$	448,908,517	$	2,680,897