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Debt and Banking Arrangements
3 Months Ended
Mar. 31, 2016
Debt Disclosure [Abstract]  
Debt and Banking Arrangements [Text Block]
Note 9 – Debt and Banking Arrangements
Long-Term Debt
Issuances and retirements
On January 22, 2016, Transco issued $1 billion of 7.85 percent senior unsecured notes due 2026 to investors in a private debt placement. Transco used the net proceeds to repay debt and to fund capital expenditures. As part of the new issuance, Transco entered into a registration rights agreement with the initial purchasers of the unsecured notes. Transco is obligated to file and consummate a registration statement for an offer to exchange the notes for a new issue of substantially identical notes registered under the Securities Act of 1933, as amended, within 365 days from closing and to use commercially reasonable efforts to complete the exchange offer. Transco is required to provide a shelf registration statement to cover resales of the notes under certain circumstances. If Transco fails to fulfill these obligations, additional interest will accrue on the affected securities. The rate of additional interest will be 0.25 percent per annum on the principal amount of the affected securities for the first 90-day period immediately following the occurrence of default, increasing by an additional 0.25 percent per annum with respect to each subsequent 90-day period thereafter, up to a maximum amount for all such defaults of 0.5 percent annually. Following the cure of any registration defaults, the accrual of additional interest will cease.
Transco retired $200 million of 6.4 percent senior unsecured notes that matured on April 15, 2016.
Commercial Paper Program
As of March 31, 2016, WPZ had $135 million of Commercial paper outstanding under its $3 billion commercial paper program with a weighted average interest rate of 1.29 percent.
Credit Facilities
 
March 31, 2016
 
Stated Capacity
 
Outstanding
 
(Millions)
WMB
 
 
 
Long-term credit facility
$
1,500

 
$
1,035

Letters of credit under certain bilateral bank agreements
 
 
14

WPZ
 
 
 
Long-term credit facility (1)
3,500

 
625

Letters of credit under certain bilateral bank agreements
 
 
2

Short-term credit facility
150

 

 
(1)
In managing our available liquidity, we do not expect a maximum outstanding amount in excess of the capacity of WPZ’s credit facility inclusive of any outstanding amounts under its commercial paper program.