Debt

12 Months Ended

Dec. 31, 2019

As of the indicated dates, the principal amount of QEP's debt consisted of the following:



	December 31,
	2019			2018
	(in millions)
Revolving Credit Facility due 2022	$	—		$	430.0
6.80% Senior Notes due 2020	—			51.7
6.875% Senior Notes due 2021	382.4			397.6
5.375% Senior Notes due 2022	500.0			500.0
5.25% Senior Notes due 2023	650.0			650.0
5.625% Senior Notes due 2026	500.0			500.0
Less: unamortized discount and unamortized debt issuance costs	(16.8		)	(22.2		)
Total long-term debt outstanding	$	2,015.6		$	2,507.1

Of the total debt outstanding on December 31, 2019, the 6.875% Senior Notes due March 1, 2021, the 5.375% Senior Notes due October 1, 2022 and the 5.25% Senior Notes due May 1, 2023, will mature within the next five years. In addition, the revolving credit facility matures on September 1, 2022.

Credit Facility

QEP's revolving credit facility, which matures in September 2022, provides for loan commitments of $1.25 billion. The credit facility provides for borrowings at short-term interest rates and contains customary covenants and restrictions. The credit agreement contains financial covenants (that are defined in the credit agreement) that limit the amount of debt the Company can incur and may limit the amount available to be drawn under the credit facility including: (i) a net funded debt to capitalization ratio that may not exceed 60%, (ii) a leverage ratio under which net funded debt may not exceed 3.75 times consolidated EBITDA (as defined in the credit agreement), beginning January 1, 2019, and (iii) a present value coverage ratio under which the present value of the Company's proved reserves must exceed net funded debt by 1.40 times through December 31, 2019, and must exceed net funded debt by 1.50 times at any time on or after January 1, 2020. As of December 31, 2019 and 2018, QEP was in compliance with the covenants under the credit agreement.

During the years ended December 31, 2019 and 2018, QEP's weighted-average interest rates on borrowings from its credit facility were 4.73% and 4.43%, respectively. As of December 31, 2019, QEP had no borrowings outstanding and $2.9 million in letters of credit outstanding under the credit facility. As of December 31, 2018, QEP had $430.0 million of borrowings outstanding and $0.3 million in letters of credit outstanding under the credit facility.

Senior Notes

At December 31, 2019, the Company had $2,032.4 million principal amount of senior notes outstanding with maturities ranging from March 1, 2021 to March 1, 2026 and coupons ranging from 5.25% to 6.875%. The senior notes pay interest semi-annually, are unsecured senior obligations and rank equally with all of our other existing and future unsecured and senior obligations. QEP may redeem some or all of its senior notes at any time before their maturity at a redemption price based on a make-whole amount plus accrued and unpaid interest to the date of redemption. The indentures governing QEP's senior notes contain customary events of default and covenants that may limit QEP's ability to, among other things, place liens on its property or assets. During the year ended December 31, 2019, QEP redeemed all $51.7 million of its outstanding 6.80% Senior Notes due March 2020 and repurchased $15.2 million of its 6.875% Senior Notes due March 2021. During the year ended December 31, 2019, the Company recorded $1.0 million in "Loss from early extinguishment of debt" in the Consolidated Statements of Operations for costs associated with the redemption and repurchase of Senior Notes.

The Company expects to fund the maturity of its 6.875% Senior Notes due March 1, 2021 with cash on hand, cash flow from its operating activities, the expected alternative minimum tax (AMT) credit refunds, proceeds from potential asset sales and borrowings under its revolving credit facility. The credit facility has various financial covenants that limit the amount of debt the Company can incur, including the present value of the Company’s reserves. An updated present value calculation is required to be delivered to the bank group by April 1 of each year and is calculated using the prior year end reserve report and an average commodity price deck provided by a subset of the bank group. Based on the Company’s December 31, 2019 reserves, and current commodity pricing, the Company believes there will be sufficient availability under its revolving credit facility to continue to fund ongoing operations, including funding of a portion of the 6.875% Senior Notes repayment. The Company can make no assurance regarding future availability under its revolving credit facility or continued compliance with restrictive financial covenants if its current projections or material underlying assumptions prove to be incorrect. Further, if the Company fails to comply with the covenants, the Company may not be able to borrow under the credit facility.