CREDIT FACILITIES AND LONG-TERM DEBT

9 Months Ended

Sep. 30, 2012

CREDIT FACILITIES AND LONG-TERM DEBT

CREDIT FACILITIES AND LONG-TERM DEBT

NOTE 5                 CREDIT FACILITIES AND LONG-TERM DEBT

(unaudited)
(millions of dollars)	September 30, 2012		December 31, 2011
Senior Credit Facility due 2016		313		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
		692		742
Less: current portion of long-term debt		3		3
		689		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 $313 million was outstanding at September 30, 2012 (December 31, 2011 - $363 million), leaving $187 million available for future borrowing.

The London Interbank Offered Rate (LIBOR) based interest rate on the Senior Credit Facility averaged 1.62 and 1.63 percent for the three and nine months ended September 30, 2012, respectively. The LIBOR-based interest rate was 1.61 percent at September 30, 2012.

The LIBOR-based interest rate on the Senior Credit Facility averaged 0.9 percent and 0.8 percent for the three and nine months ended September 30, 2011. After hedging activity, the LIBOR-based interest rate incurred on the Senior Credit Facility averaged 3.4 percent and 2.7 percent for the three and nine months ended September 30, 2011. Prior to hedging activities, the LIBOR-based interest rate was 1.1 percent at September 30, 2011.

At September 30, 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	317
Thereafter	361
	692