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, 2017. In addition, Chugach did not utilize this line of credit during 2016 and had no outstanding balance at December 31, 2016. The borrowing rate is calculated using the total rate per annum and may be fixed by NRUCFC. The borrowing rate was 2.75% at September 30, 2017, and 2.50% at December 31, 2016. 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 was renewed effective September 29, 2017 and expires September 29, 2022. This line of credit is immediately available for unconditional borrowing.

Commercial Paper

On June 13, 2016, Chugach entered into a $150.0 million senior unsecured credit facility (Credit Agreement), which is used to back Chugach’s commercial paper program. The pricing includes an all-in drawn spread of one month London Interbank Offered Rate (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 2017, as needed. Chugach had $51.0 million and $68.2 million of commercial paper outstanding at September 30, 2017, and December 31, 2016, respectively.

The following table provides information regarding average commercial paper balances outstanding for the quarters ended September 30, 2017, and 2016 (dollars in millions), as well as corresponding weighted average interest rates:



2017				2016
Average Balance		Weighted Average Interest Rate		Average Balance		Weighted Average Interest Rate
$	42.8	1.40	%	$	53.8	0.65	%

Term Loans

Chugach has a term loan facility with CoBank. Loans made under this facility are evidenced by the 2016 CoBank Note, which is governed by the Amended and Restated Master Loan Agreement dated June 30, 2016, and secured by the Second Amended and Restated Indenture of Trust (Indenture). The borrowing rate is fixed at 2.58% on a fifteen year term, maturing April 20, 2031. Chugach had $41.2 million and $43.8 million outstanding on this facility at September 30, 2017, and December 31, 2016.

Financing

On March 17, 2017, Chugach issued $40,000,000 of First Mortgage Bonds, 2017 Series A, due March 15, 2037. The bonds were issued for general corporate purposes. The 2017 Series A Bonds will mature on March 15, 2037, and bear interest at 3.43%. Interest will be paid each March 15 and September 15, commencing on September 15, 2017. The 2017 Series A Bonds require principal payments in equal installments on an annual basis beginning March 15, 2018, resulting in an average life of approximately 10.0 years. The bonds are secured, ranking equally with all other long-term obligations, by a first lien on substantially all of Chugach’s assets, pursuant to the Sixth Supplemental Indenture to the Second Amended and Restated Indenture of Trust, which initially became effective on January 20, 2011, as previously amended and supplemented.

Debt Issuance Costs

The following table outlines debt issuance costs associated with long-term obligations, excluding current installments, at September 30, 2017.



	Long-term Obligations		Unamortized Debt Issuance Costs
2011 Series A Bonds	$	200,333,331	$	1,250,685
2012 Series A Bonds		183,500,000		1,040,988
2017 Series A Bonds		38,000,000		203,643
2016 CoBank Note		37,962,000		239,393
	$	459,795,331	$	2,734,709

The following table outlines debt issuance costs associated with long-term obligations, excluding

current installments, at December 31, 2016.



	Long-term Obligations		Unamortized Debt Issuance Costs
2011 Series A Bonds	$	210,999,998	$	1,347,350
2012 Series A Bonds		194,250,000		1,106,275
2016 CoBank Note		40,356,000		262,120
	$	445,605,998	$	2,715,745