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Debt Obligations
9 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Debt Obligations

Note 9 — Debt Obligations

 

 

 

September 30, 2018

 

 

December 31, 2017

 

Current:

 

 

 

 

 

 

 

 

Obligations of the Partnership: (1)

 

 

 

 

 

 

 

 

Accounts receivable securitization facility, due December 2018 (2)

 

$

290.0

 

 

$

350.0

 

 

 

 

 

 

 

 

 

 

Long-term:

 

 

 

 

 

 

 

 

TRC obligations:

 

 

 

 

 

 

 

 

TRC Senior secured revolving credit facility, variable rate, due

   June 2023 (3)

 

 

435.0

 

 

 

435.0

 

Obligations of the Partnership: (1)

 

 

 

 

 

 

 

 

Senior secured revolving credit facility, variable rate, due

   June 2023 (4)

 

 

 

 

 

20.0

 

Senior unsecured notes:

 

 

 

 

 

 

 

 

4⅛% fixed rate, due November 2019

 

 

749.4

 

 

 

749.4

 

5¼% fixed rate, due May 2023

 

 

559.6

 

 

 

559.6

 

4¼% fixed rate, due November 2023

 

 

583.9

 

 

 

583.9

 

6¾% fixed rate, due March 2024

 

 

580.1

 

 

 

580.1

 

5⅛% fixed rate, due February 2025

 

 

500.0

 

 

 

500.0

 

5⅞% fixed rate, due April 2026

 

 

1,000.0

 

 

 

 

5⅜% fixed rate, due February 2027

 

 

500.0

 

 

 

500.0

 

5% fixed rate, due January 2028

 

 

750.0

 

 

 

750.0

 

TPL notes, 4¾% fixed rate, due November 2021

 

 

6.5

 

 

 

6.5

 

TPL notes, 5⅞% fixed rate, due August 2023

 

 

48.1

 

 

 

48.1

 

Unamortized premium

 

 

0.3

 

 

 

0.4

 

 

 

 

5,712.9

 

 

 

4,733.0

 

Debt issuance costs, net of amortization

 

 

(34.0

)

 

 

(30.0

)

Long-term debt

 

 

5,678.9

 

 

 

4,703.0

 

Total debt obligations

 

$

5,968.9

 

 

$

5,053.0

 

Irrevocable standby letters of credit:

 

 

 

 

 

 

 

 

Letters of credit outstanding under the TRC Senior

   secured credit facility (3)

 

$

 

 

$

 

Letters of credit outstanding under the Partnership senior

   secured revolving credit facility (4)

 

 

76.6

 

 

 

27.2

 

 

 

$

76.6

 

 

$

27.2

 

 

(1)

While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership.

(2)

As of September 30, 2018, the Partnership had $350.0 million of qualifying receivables under its $350.0 million accounts receivable securitization facility, resulting in availability of $60.0 million.

(3)

As of September 30, 2018, availability under TRC’s $670.0 million senior secured revolving credit facility (“TRC Revolver”) was $235.0 million.

(4)

As of September 30, 2018, availability under the Partnership’s $2.2 billion senior secured revolving credit facility (“TRP Revolver”) was $2,123.4 million.

 

The following table shows the range of interest rates and weighted average interest rate incurred on variable-rate debt obligations during the nine months ended September 30, 2018:

 

 

 

Range of Interest Rates Incurred

 

Weighted Average Interest Rate Incurred

 

TRC Revolver

 

3.3% - 4.0%

 

3.6%

 

TRP Revolver

 

3.4% - 5.5%

 

3.8%

 

Partnership's accounts receivable securitization facility

 

2.6% - 3.2%

 

2.9%

 

 

Compliance with Debt Covenants

 

As of September 30, 2018, we were in compliance with the covenants contained in our various debt agreements.

 

Senior Unsecured Notes

 

In April 2018, the Partnership issued $1.0 billion aggregate principal amount of 5% senior notes due April 2026 (the “5% Senior Notes due 2026”). The Partnership used the net proceeds of $991.9 million after costs from this offering to repay borrowings under its credit facilities and for general partnership purposes. The 5% Senior Notes due 2026 are unsecured senior obligations that have substantially the same terms and covenants as the Partnership’s other senior notes.

 

TRC Revolver Amendment

 

In June 2018, we entered into an agreement to amend the TRC Revolver to extend the maturity date from February 2020 to June 2023. The available commitments of $670.0 million and our ability to request additional commitments of $200.0 million remained unchanged. The TRC Revolver continues to bear interest costs that are dependent on the ratio of non-Partnership consolidated funded indebtedness to consolidated adjusted EBITDA, as defined in the TRC Revolver, and the covenants remained substantially the same.

 

We incurred a loss of $0.7 million to partially write off debt issuance costs associated with the TRC Revolver as a result of a change in syndicate members. The remaining debt issuance costs, along with debt issuance costs incurred with this amendment, will be amortized on a straight-line basis over the TRC Revolver’s new term.

 

TRP Revolver Amendment

 

In June 2018, the Partnership entered into an agreement to amend and restate the TRP Revolver, which extended the maturity date from October 2020 to June 2023, increased available commitments from $1.6 billion to $2.2 billion and lowered the applicable margin range and commitment fee range used in the calculation of interest. The Partnership’s ability to request additional commitments of $500.0 million remained unchanged.

The TRP Revolver bears interest, at the Partnership’s option, either at the base rate or the Eurodollar rate. The base rate is equal to the highest of: (i) Bank of America’s prime rate; (ii) the federal funds rate plus 0.5%; or (iii) the one-month LIBOR rate plus 1.0%, plus an applicable margin (a) before the collateral release date, ranging from 0.25% to 1.25% dependent on the Partnership’s ratio of consolidated funded indebtedness to consolidated adjusted EBITDA and (b) upon and after the collateral release date, ranging from 0.125% to 0.75% dependent on the Partnership’s non-credit-enhanced senior unsecured long-term debt ratings. The Eurodollar rate is equal to LIBOR rate plus an applicable margin (i) before the collateral release date, ranging from 1.25% to 2.25% dependent on the Partnership’s ratio of consolidated funded indebtedness to consolidated adjusted EBITDA and (ii) upon and after the collateral release date, ranging from 1.125% to 1.75% dependent on the Partnership’s non-credit-enhanced senior unsecured long-term debt ratings.

The Partnership is required to pay a commitment fee equal to an applicable rate ranging from (a) before the collateral release date, 0.25% to 0.375% (dependent on the Partnership’s ratio of consolidated funded indebtedness to consolidated adjusted EBITDA) and (b) upon and after the collateral release date, 0.125% to 0.35% (dependent on the Partnership’s non-credit-enhanced senior unsecured long-term debt ratings) times the actual daily average unused portion of the TRP Revolver. Additionally, issued and undrawn letters of credit bear interest at an applicable margin (i) before the collateral release date, ranging from 1.25% to 2.25% dependent on the Partnership’s ratio of consolidated funded indebtedness to consolidated adjusted EBITDA and (ii) upon and after the collateral release date, ranging from 1.125% to 1.75% dependent on the Partnership’s non-credit-enhanced senior unsecured long-term debt ratings. The TRP Revolver’s covenants remained substantially the same.

 

During the nine months ended September 30, 2018, the Partnership incurred a loss of $1.3 million to partially write-off debt issuance costs associated with the TRP Revolver amendment as a result of a change in syndicate members. The remaining debt issuance costs, along with debt issuance costs incurred with this amendment, will be amortized on a straight-line basis over the TRP Revolver’s new term.