CREDIT FACILITIES AND LONG-TERM DEBT

3 Months Ended

Mar. 31, 2012

CREDIT FACILITIES AND LONG-TERM DEBT

CREDIT FACILITIES AND LONG-TERM DEBT

NOTE 5                 CREDIT FACILITIES AND LONG-TERM DEBT

(unaudited)	March 31,		December 31,
(millions of dollars)	2012		2011
Senior Credit Facility due 2016		328		363
4.65% Senior Notes due 2021		349		349
6.89% Series C Senior Notes due 2012		3		3
3.82% Series D Senior Notes due 2017		27		27
		707		742
Less: current portion of long-term debt		3		3
		704		739

The Partnership’s Senior Credit Facility consists of a $500 million senior revolving credit facility with a banking syndicate, maturing July 13, 2016, under which $328 million was outstanding at March 31, 2012 (December 31, 2011 - $363 million), leaving $172 million available for future borrowing.

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

The LIBOR-based interest rate on the Senior Credit Facility averaged 0.83 percent for the three months ended March 31, 2011. After hedging activity, the LIBOR-based interest rate incurred on the Senior Credit Facility averaged 4.01 percent for the three months ended March 31, 2011. Prior to hedging activities, the LIBOR-based interest rate was 0.79 percent at March 31, 2011.

At March 31, 2012, 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 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)
2012	3
2013	3
2014	4
2015	4
2016	332
Thereafter	361
	707