CREDIT FACILITIES AND LONG-TERM DEBT

6 Months Ended

Jun. 30, 2014

CREDIT FACILITIES AND LONG-TERM DEBT

NOTE 5 CREDIT FACILITIES AND LONG-TERM DEBT

(unaudited)
(millions of dollars)	June 30, 2014	December 31, 2013

Senior Credit Facility due 2017	365	380
Term Loan Facility due 2018	500	500
4.65% Unsecured Senior Notes due 2021	349	349
5.09% Unsecured Senior Notes due 2015	75	75
5.29% Unsecured Senior Notes due 2020	100	100
5.69% Unsecured Senior Notes due 2035	150	150
3.82% Series D Senior Notes due 2017	24	24
	1,563	1,578
Less: current portion of long-term debt	79	3
	1,484	1,575

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 $365 million was outstanding at June 30, 2014 (December 31, 2013 - $380 million), leaving $135 million available for future borrowing.

The London Interbank Offered Rate (LIBOR) based interest rate on the Senior Credit Facility averaged 1.41 percent for the three and six months ended June 30, 2014 (2013 – 1.45 percent). The LIBOR-based interest rate was 1.41 percent at June 30, 2014 (December 31, 2013 – 1.42 percent).

The LIBOR-based interest rate on the Term Loan Facility averaged 1.41 percent for the three and six months ended June 30, 2014. After hedging activity, the interest rate incurred on the Term Loan Facility averaged 1.83 percent for three and six months ended June 30, 2014. Prior to hedging activities, the LIBOR-based interest rate was 1.41 percent at June 30, 2014 (December 31, 2013 – 1.42 percent).

GTN’s Senior Notes provisions contain a covenant that limits total debt to no greater than 70 percent of total capitalization.

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

As of June 30, 2014, 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.

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

(unaudited)
(millions of dollars)

2014		3
2015		79
2016		4
2017		378
2018		500
Thereafter		599
		1,563

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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