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Long-Term Debt
 9 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Long-Term Debt LONG-TERM DEBT

The following table summarizes our long-term debt:
 
Maturity
Interest Rate(s)(5) Per Annum at
September 30,
December 31,
(in millions)
Dates
September 30, 2018
2018
2017
Pacific Facilities:
 
 
 
 
 
 
 
 
Pacific Term Loan B-1
n/a
n/a
 
n/a
$
—

$
1,048

Pacific Revolving Credit Facility
n/a
n/a
 
n/a
—

—

2015 Credit Facilities:
 
 
 
 
 
 
 
 
Term Loan Facility
n/a
n/a
 
n/a
—

490

Revolving Credit Facility
n/a
n/a
 
n/a
—

—

Financing arrangements secured by aircraft:
 
 
 
 
 
 
 
 
Certificates(1)
2018
to
2027
3.63%
to
8.02%
2,010

2,380

Notes(1)
2018
to
2026
2.75%
to
6.54%
1,281

1,961

2018 Unsecured Notes
2021
to
2028
3.40%
to
4.38%
1,600

—

2018 Unsecured Revolving Credit Facility
2021
to
2023
undrawn
variable(4)
—

—

NYTDC Special Facilities Revenue Bonds, Series 2018(1)
2022
to
2036
4.00%
to
5.00%
1,383

—

Other unsecured notes
2020
to
2022
2.60%
to
3.63%
2,450

2,450

Other financings(1)(2)
2019
to
2030
1.81%
to
8.75%
140

210

Other revolving credit facilities(3)
2019
to
2021
undrawn
variable(4)
—

—

Total secured and unsecured debt
 
 
 
 
 
 
8,864

8,539

Unamortized premium (discount) and debt issue cost, net
 
 
 
 
 
 
17

(99
)
Total debt
 
 
 
 
 
 
8,881

8,440

Less: current maturities
 
 
 
 
 
 
(1,080
)
(2,145
)
Total long-term debt
 
 
 
 
 
 
$
7,801

$
6,295

 
(1) 
Due in installments.
(2) 
Primarily includes unsecured bonds and debt secured by certain accounts receivable and real estate.
(3) 
As of September 30, 2018, we have $537 million available under these revolving credit facilities, all of which are undrawn.
(4) 
Interest rate equal to LIBOR (generally subject to a floor) or another index rate, in each case plus a specified margin.
(5) 
Certain aircraft and other financings are comprised of variable rate debt.

2018 Unsecured Notes

During the June 2018 quarter, we issued $1.6 billion in aggregate principal amount of unsecured notes, consisting of $600 million of 3.4% Notes due 2021, $500 million of 3.8% Notes due 2023 and $500 million of 4.375% Notes due 2028 (collectively, the "Notes"). Concurrently with issuing the Notes, we entered into interest rate derivatives that swapped payments of fixed rate interest for payments of floating rate interest, which reduced our effective interest rate to one-month LIBOR plus 1.17%. See Note 5, "Derivatives," for more information about the interest rate swaps.

The Notes are equal in right of payment with our other unsubordinated indebtedness and senior in right of payment to our future subordinated debt. The Notes are subject to covenants that, among other things, limit our ability to incur liens securing indebtedness for borrowed money or capital leases and engage in mergers and consolidations or transfer all or substantially all of our assets, in each case subject to certain exceptions. The Notes are also subject to customary event of default provisions, including cross-defaults to other material indebtedness.

If we experience certain changes of control, followed by a ratings decline of any series of Notes by two of the ratings agencies to a rating below investment grade, we must offer to repurchase such series.

We used the net proceeds from the offering of the Notes to repay borrowings outstanding under our secured Pacific term loan B-1 facility and 2015 term loan facility and for general corporate purposes.

2018 Unsecured Revolving Credit Facility

During the June 2018 quarter, we entered into a $2.65 billion unsecured revolving credit facility, up to $500 million of which may be used for the issuance of letters of credit (the “Revolving Credit Facility”). The Revolving Credit Facility was undrawn at the time we entered into it and remains undrawn. The Revolving Credit Facility replaced the undrawn secured Pacific Revolving Credit Facility and the 2015 Revolving Credit Facility, both of which were terminated in conjunction with the repayment of the term loans described above.

The Revolving Credit Facility is split evenly into a $1.325 billion three-year facility and a $1.325 billion five-year facility. Borrowings on both facilities bear interest at a variable rate equal to LIBOR, or another index rate, in each case plus a specified margin.

NYTDC Special Facilities Revenue Bonds

During the June 2018 quarter, the New York Transportation Development Corporation ("NYTDC") issued Special Facilities Revenue Bonds, Series 2018 (the "2018 Bonds") in the aggregate principal amount of $1.4 billion. We entered into loan agreements with the NYTDC to use the proceeds from the 2018 Bonds to finance a portion of the construction costs for the new terminal facilities at the LaGuardia Airport. The proceeds from the 2018 Bonds are recorded in cash restricted for airport construction on the Consolidated Balance Sheet. Additional information about the construction project at the LaGuardia Airport is included in Note 8, "Airport Development," in our Form 10-K.

We are required to pay debt service on the 2018 Bonds through payments under loan agreements with NYTDC, and we have guaranteed the 2018 Bonds.

Fair Value of Debt

Market risk associated with our fixed- and variable-rate long-term debt relates to the potential reduction in fair value and negative impact to future earnings, respectively, from an increase in interest rates. The fair value of debt, shown below, is principally based on reported market values, recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral. Long-term debt is primarily classified as Level 2 within the fair value hierarchy.    
(in millions)
September 30,
2018
December 31,
2017
Total debt at par value
$
8,864

$
8,539

Unamortized premium (discount) and debt issue cost, net

17

(99
)
Net carrying amount
$
8,881

$
8,440

 
 
 
Fair value
$
9,000

$
8,700



Covenants

We were in compliance with the covenants in our financings at September 30, 2018.