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CREDIT FACILITIES AND LONG-TERM DEBT
9 Months Ended
Sep. 30, 2014
CREDIT FACILITIES AND LONG-TERM DEBT  
CREDIT FACILITIES AND LONG-TERM DEBT

NOTE 5CREDIT FACILITIES AND LONG-TERM DEBT

 

(unaudited)

 

 

 

 

 

(millions of dollars)

 

September 30, 2014

 

December 31, 2013

 

 

 

 

 

 

Senior Credit Facility due 2017

 

335 

 

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 

 

 

 

1,533 

 

1,578 

 

Less: current portion of long-term debt

 

79 

 

 

 

 

1,454 

 

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 $335 million was outstanding at September 30, 2014 (December 31, 2013 - $380 million), leaving $165 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 nine months ended September 30, 2014 (2013 – 1.44 and 1.45 percent). The LIBOR-based interest rate was 1.41 percent at September 30, 2014 (December 31, 2013 – 1.42 percent).

 

On July 1, 2013, the Partnership entered into a term loan agreement with a syndicate of lenders for a $500 million term loan credit facility (Term Loan Facility). On July 2, 2013, the Partnership borrowed $500 million under the Term Loan Facility.

 

The LIBOR-based interest rate on the Term Loan Facility averaged 1.41 percent for the three months ended September 30, 2014 (2013 – 1.44 percent).  For the nine months ended September 30, 2014, the interest averaged 1.41 percent. After hedging activity, the interest rate incurred on the Term Loan Facility averaged 1.83 percent for three months ended September 30, 2014 (2013 – 1.56 percent).  For the nine months ended September 30, 2014, the interest rate averaged 1.83 percent. Prior to hedging activities, the LIBOR-based interest rate was 1.41 percent at September 30, 2014 (December 31, 2013 – 1.42 percent).

 

The Partnership’s Senior Credit Facility and Term Loan Facility contain a covenant requiring us to maintain a maximum agreed upon leverage ratio.

 

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

 

The Series D Senior Notes, which require yearly principal payments until its maturity, 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 September 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

 

 

2015

 

79 

 

2016

 

 

2017

 

348 

 

2018

 

500 

 

Thereafter

 

599 

 

 

 

1,533