Algonquin Power & Utilities Corp. – Consolidated Financial Statements ALGONQUIN POWER & UTILITIES CORP.  Notes to the Consolidated Financial Statements  December 31, 2012 and 2011   (in thousands of Canadian dollars except as noted and amounts per share)  9.  Long-term liabilities (continued)  2012  2011 Liberty Water Co: U.S. $50,000 senior unsecured notes,  interest rate of 5.6% maturing December 22, 2020. The  notes are interest only, payable semi-annually, until June  20, 2016 with semi-annual interest payments and an  annual principal repayment of U.S. $5,000 thereafter.  49,745  50,850  Granite State: Senior unsecured notes, U.S. $5,000,  bearing an interest rate of 7.37%, maturing November 1,  2023; U.S. $5,000, bearing an interest rate of 7.94%,  maturing July 1, 2025; and, U.S. $5,000, bearing an  interest rate of 7.30%, maturing June 15, 2028. The notes  are interest only, payable semi-annually.  14,924  - Litchfield Park Service Company Bonds: 1999 and 2001  IDA Bonds. Interest rates of 5.95% and 6.75% repayable  in blended semi-annual installments maturing October 1,  2023 and October 1, 2031. Principal payments of U.S.  $285 (2011 – U.S. $270). The balance of these notes at  December 31, 2012 was U.S. $3,390 and U.S. $7,030,  respectively (2011 – U.S. $3,605 and U.S. $7,100).  11,269  11,868  Bella Vista Water Loans: Water Infrastructure Financing  Authority of Arizona Interest rates of 6.26% and 6.10%  repayable in monthly and quarterly installments (U.S. $15  and U.S. $4) maturing March 1, 2020 and December 1,  2017. The balance of these notes at December 31, 2012  was U.S. $1,167 and U.S. $80 respectively (2011 – U.S.  $1,275 and U.S. $83)  1,241  1,399  $ 770,826 $ 332,716 Less: current portion  (1,768)  (1,624)  $ 769,058 $ 331,092 Certain long-term debt issued at a subsidiary level relating to a specific operating facility is  secured by the respective facility with no other recourse to APUC, APCo or Liberty Utilities. The  loans have certain financial covenants, which must be maintained on a quarterly basis. Non  compliance with the covenants could restrict cash distributions/dividends to Liberty Utilities, APCo  and APUC from the specific facilities. On December 3, 2012, APCo issued $150,000 senior unsecured debentures bearing interest at  4.82% and with a maturity date of February 15, 2021. The debentures were sold at a price of  $99.94 per $100.00 principal amount. Interest payments will be payable on February 15 and  August 15 each year, commencing on February 15, 2013. APCo incurred deferred financing costs  of $1,057, which are being amortized to interest expense over the term of the loan using the  effective interest rate method. Concurrent with the offering, APCo entered into a cross currency  swap, coterminous with the debentures, to economically convert the Canadian dollar denominated offering into U.S. dollars (note 24(b)(iii)). In 2012, APCo increased the maximum availability under its senior credit facility from $120,000 to  $200,000 to meet future working capital needs. In addition, the bank syndicate agreed to release  its security previously held over certain APCo entities, such that the facility is now fully  unsecured. The facility has a maturity date of November 16, 2015.  2012 Annual Report 105 APCo 