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CREDIT FACILITIES AND LONG-TERM DEBT
6 Months Ended
Jun. 30, 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)

 

June 30, 2013   

 

December 31, 2012

 

 

 

 

 

 

 

Senior Credit Facility due 2017

 

-

 

312

 

4.65% Senior Notes due 2021

 

349

 

349

 

3.82% Series D Senior Notes due 2017

 

27

 

27

 

 

 

376

 

688

 

Less: current portion of long-term debt

 

3

 

3

 

 

 

373

 

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 nil was outstanding at June 30, 2013 (December 31, 2012 - $312 million), leaving $500 million available for future borrowing. The nil balance was the result of a repayment from the proceeds of the Partnership’s May 2013 equity offering pending the closing of the 2013 Acquisition (refer to note 13).

 

The London Interbank Offered Rate (LIBOR) based interest rate on the Senior Credit Facility averaged 1.45 for the three and six months ended June 30, 2013 (2012 – 1.62 and 1.64 percent). The LIBOR-based interest rate was 1.45 percent at June 30, 2013 (2012 – 1.63 percent).

 

At June 30, 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

 

12

 

Thereafter

 

349

 

 

 

376