Page 61 - SWGas Annual Report 2015

commitment fee ranges from 0.15% to 0.40% per annum. Borrowings under the revolving credit facility ranged from
a low of $60.6 million during December 2015 to a high of $105.2 million during May 2015. All amounts outstanding
are considered long-term borrowings. The effective interest rate on the secured revolving credit and term loan
facility was 2.46% at December 31, 2015.

The effective interest rates on the variable-rate IDRBs are included in the table below:

December 31, 2015 December 31, 2014

2003 Series A 0.87% 0.85%
2008 Series A 0.87% 0.90%
2009 Series A 0.75% 0.89%
Tax-exempt Series A 0.81% 0.84%

In Nevada, interest fluctuations due to changing interest rates on the 2003 Series A, 2008 Series A, and 2009
Series A variable-rate IDRBs are tracked and recovered from ratepayers through an interest balancing account.

Estimated maturities of long-term debt for the next five years are (in thousands):

2016 $ 19,475
2017 42,245
2018 14,906
2019
2020 142,452
275,238

No debt instruments have credit triggers or other clauses that result in default if Company bond ratings are lowered
by rating agencies. Certain Company debt instruments contain securities ratings covenants that, if set in motion,
would increase financing costs. Certain debt instruments also have leverage ratio caps and minimum net worth
requirements. At December 31, 2015, the Company is in compliance with all of its covenants. Under the most
restrictive of the covenants, the Company could issue approximately $2.2 billion in additional debt and meet the
leverage ratio requirement. The Company has at least $1 billion of cushion in equity relating to the minimum net
worth requirement.

Certain Centuri debt instruments have leverage ratio caps and fixed charge ratio coverage requirements. At
December 31, 2015, Centuri is in compliance with all of its covenants. Under the most restrictive of the covenants,
Centuri could issue approximately $75 million in additional debt and meet the leverage ratio requirement. Centuri
has at least $15 million of cushion relating to the minimum fixed charge ratio coverage requirement.

Early Adoption of Accounting Standards Update (“ASU”) No. 2015-03. As of December 31, 2015, the Company
adopted FASB ASU No. 2015-03 “Interest-Imputation of Interest (subtopic 835-30)”. To simplify presentation of
debt issuance costs, the amendments in this update require that debt issuance costs related to a recognized debt
liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability,
consistent with debt discounts. The adoption of this update is considered a change in an accounting principle.
Upon adoption, the 2014 amounts in the Consolidated Balance Sheets were restated for Long-term debt (from
$1,637,592,000 to $1,631,374,000), Deferred charges and other assets (from $478,625,000 to $472,579,000), and
Prepaids and other current assets (from $99,975,000 to $99,803,000). The 2014 amounts in the debt listing table
for unamortized discount and debt issuance costs for debentures and IDRBs previously included only amounts

Southwest Gas Corporation