CONSOLIDATED DEBT (Notes)

6 Months Ended

Jun. 30, 2019

Consolidated debt is as follows (in millions):



	Average Rate⁽¹⁾	June 30, 2019			December 31, 2018
LONG-TERM DEBT:
Revolving credit facility	4.35%	$	323		$	212
Term loan, net	4.43%	389			394
Credit Facilities subtotal		712			606
Senior Notes, net of deferred financing costs		1,185			1,184
Tax-Exempt Bonds, net of deferred financing costs		489			488
Equipment financing arrangements		76			64
Total long-term debt		2,462			2,342
Less: Current portion		(16		)	(15		)
Noncurrent long-term debt		$	2,446		$	2,327

PROJECT DEBT:
Total project debt, net of deferred financing costs and unamortized debt premium		$	138		$	152
Less: Current portion		(10		)	(19		)
Noncurrent project debt		$	128		$	133

TOTAL CONSOLIDATED DEBT		$	2,600		$	2,494
Less: Current debt		(26		)	(34		)
TOTAL NONCURRENT CONSOLIDATED DEBT		$	2,574		$	2,460

⁽¹⁾On March 31, 2019 we entered into an interest rate swap agreement to swap the LIBOR portion of our floating interest rate to a fixed rate of 2.132% for $100 million notional amount of our variable rate debt under the Credit Facilities. See Note 10. Derivative Instruments for further information.

Our subsidiary, Covanta Energy, has a senior secured credit facility consisting of a revolving credit facility (the “Revolving Credit Facility”) and a term loan (the “Term Loan”). The nature and terms of our Credit Facilities, Senior Notes, Tax-Exempt Bonds, project debt and other long-term debt are described in detail in Note 16. Consolidated Debt in our Annual Report on Form 10-K for the year ended December 31, 2018.

Revolving Credit Facility

As of June 30, 2019, we had unutilized capacity under the Revolving Credit Facility as follows (in millions):



	Total Facility Commitment		Expiring	Direct Borrowings		Outstanding Letters of Credit		Unutilized Capacity
Revolving Credit Facility	$	900	2023	$	323	$	209	$	368

Credit Agreement Covenants

The loan documentation governing the Credit Facilities contains various affirmative and negative covenants, as well as financial maintenance covenants (financial ratios), that limit our ability to engage in certain types of transactions. We were in compliance with all of the affirmative and negative covenants under the Credit Facilities as of June 30, 2019.

Equipment Financing

During March 2019, we commenced operations at the East 91st Street Marine Transfer Station, which is the second of a pair of marine transfer stations utilized under a 20-year waste transport and disposal agreement between Covanta and New York City's Department of Sanitation ("DSNY"). In accordance with the contract, we are responsible for purchasing and maintaining a sufficient number of transportation assets to allow the DSNY owned transfer stations to effectively handle the expected volumes of waste. As such, we entered into financing arrangements for the purchase of railcars and trailers (the "Equipment") to continue to meet

the requirements of the DSNY contract. We commenced investing in the Equipment during 2019 and borrowed $14 million during the six months ended June 30, 2019. Payments on these borrowings began in May 2019 and will continue monthly for a duration of 10 to 12 years with fixed interest rates ranging from 4.12% to 4.75%.