CREDIT FACILITIES AND LONG-TERM DEBT

3 Months Ended

Mar. 31, 2013

CREDIT FACILITIES AND LONG-TERM DEBT

CREDIT FACILITIES AND LONG-TERM DEBT

NOTE 5                CREDIT FACILITIES AND LONG-TERM DEBT

(unaudited)
(millions of dollars)	March 31, 2013	December 31, 2012
Senior Credit Facility due 2017	309	312
4.65% Senior Notes due 2021	349	349
3.82% Series D Senior Notes due 2017	27	27
	685	688
Less: current portion of long-term debt	3	3
	682	685

The Partnership’s Senior Credit Facility consists of a $500 million senior revolving credit facility with a banking syndicate, maturing November 20, 2017, under which $309 million was outstanding at March 31, 2013 (December 31, 2012 - $312 million), leaving $191 million available for future borrowing.

The London Interbank Offered Rate (LIBOR) based interest rate on the Senior Credit Facility averaged 1.46 percent for the three months ended March 31, 2013 (2012 – 1.65 percent). The LIBOR-based interest rate was 1.46 percent at March 31, 2013 (2012 – 1.63 percent).

At March 31, 2013, the Partnership was in compliance with its financial covenants, in addition to the other covenants which include restrictions on entering into mergers, consolidations and sales of assets, granting liens, material amendments to the Second Amended and Restated Agreement of Limited Partnership (Partnership Agreement), incurring additional debt and distributions to unitholders.

Series D Senior Notes are secured by Tuscarora’s transportation contracts, supporting agreements and substantially all of Tuscarora’s property. The note purchase agreement contains certain provisions that include, among other items, limitations on additional indebtedness and distributions to partners.

The principal repayments required on the long-term debt are as follows:

(unaudited)
(millions of dollars)
2013	3
2014	4
2015	4
2016	4
2017	321
Thereafter	349
	685