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Debt
 12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Debt

Note 11.  Debt

 

December 31    2018      2017  

 

  
(In millions)              

Loews Corporation (Parent Company):

      

Senior:

      

2.6% notes due 2023 (effective interest rate of 2.8%) (authorized, $500)

    $ 500            $ 500        

3.8% notes due 2026 (effective interest rate of 3.9%) (authorized, $500)

      500              500        

6.0% notes due 2035 (effective interest rate of 6.2%) (authorized, $300)

      300              300        

4.1% notes due 2043 (effective interest rate of 4.3%) (authorized, $500)

      500              500        

CNA Financial:

                            

Senior:

                            

7.0% notes due 2018 (effective interest rate of 7.1%) (authorized, $150)

                    150        

5.9% notes due 2020 (effective interest rate of 6.0%) (authorized, $500)

      500              500        

5.8% notes due 2021 (effective interest rate of 5.9%) (authorized, $400)

      400              400        

7.3% debentures due 2023 (effective interest rate of 7.3%) (authorized, $250)

      243              243        

4.0% notes due 2024 (effective interest rate of 4.0%) (authorized, $550)

      550              550        

4.5% notes due 2026 (effective interest rate of 4.5%) (authorized, $500)

      500              500        

3.5% notes due 2027 (effective interest rate of 3.6%) (authorized, $500)

      500              500        

Variable rate note due 2036 (effective interest rate of 4.9%)

                    30        

Capital lease obligation

      1              3        

Diamond Offshore:

                            

Senior:

                            

3.5% notes due 2023 (effective interest rate of 3.6%) (authorized, $250)

      250              250        

7.9% notes due 2025 (effective interest rate of 8.0%) (authorized, $500)

      500              500        

5.7% notes due 2039 (effective interest rate of 5.8%) (authorized, $500)

      500              500        

4.9% notes due 2043 (effective interest rate of 5.0%) (authorized, $750)

      750              750        

Boardwalk Pipeline:

                            

Senior:

                            

Variable rate revolving credit facility due 2022 (effective interest rate of 3.7% and 2.7%)

      580              385        

5.2% notes due 2018 (effective interest rate of 5.4%) (authorized, $185)

                    185        

5.8% notes due 2019 (effective interest rate of 5.9%) (authorized, $350)

      350              350        

4.5% notes due 2021 (effective interest rate of 5.0%) (authorized, $440)

      440              440        

4.0% notes due 2022 (effective interest rate of 4.4%) (authorized, $300)

      300              300        

3.4% notes due 2023 (effective interest rate of 3.5%) (authorized, $300)

      300              300        

5.0% notes due 2024 (effective interest rate of 5.2%) (authorized, $600)

      600              600        

6.0% notes due 2026 (effective interest rate of 6.2%) (authorized, $550)

      550              550        

4.5% notes due 2027 (effective interest rate of 4.6%) (authorized, $500)

      500              500        

7.3% debentures due 2027 (effective interest rate of 8.1%) (authorized, $100)

      100              100        

Capital lease obligation

      8              9        

Loews Hotels & Co:

                            

Senior debt, principally mortgages (effective interest rates approximate 4.4%)

      653              648        

Consolidated Container:

                            

Senior:

                            

Variable rate asset based lending facility due 2022 (effective interest rate of 5.5%)

      9                      

Variable rate term loan due 2024 (effective interest rate of 5.0% and 5.5%)

      597              604        

Capital lease obligation

      7              6        

 

  
     11,488              11,653        

Less unamortized discount and issuance costs

      112              120        

 

  

Debt

    $       11,376            $       11,533        

 

  

 

December 31, 2018    Principal      Unamortized
Discount and
Issuance
Costs		      Net      Short Term
Debt		      Long Term
Debt		  
   
(In millions)                                   

Loews Corporation

    $ 1,800      $ 22      $ 1,778         $     1,778      

CNA Financial

      2,694        13        2,681           2,681      

Diamond Offshore

      2,000        26        1,974           1,974      

Boardwalk Pipeline

      3,728        26        3,702      $ 1        3,701      

Loews Hotels & Co

      653        11        642           642      

Consolidated Container

      613        14        599        16        583      

Total

    $     11,488      $     112      $     11,376      $     17      $ 11,359      
            

At December 31, 2018, the aggregate long term debt maturing in each of the next five years is approximately as follows: $17 million in 2019, $605 million in 2020, $846 million in 2021, $1.3 billion in 2022, $1.3 billion in 2023 and $7.4 billion thereafter. Long term debt is generally redeemable in whole or in part at the greater of the principal amount or the net present value of remaining scheduled payments discounted at the specified treasury rate plus a margin.

CNA Financial

CNA is a member of the Federal Home Loan Bank of Chicago (“FHLBC”). FHLBC membership provides participants with access to additional sources of liquidity through various programs and services. As a requirement of membership in the FHLBC, CNA held $5 million of FHLBC stock as of December 31, 2018, giving it access to approximately $111 million of additional liquidity. As of December 31, 2018 and 2017, CNA had no outstanding borrowings from the FHLBC.

In 2018, CNA retired at maturity the $150 million outstanding aggregate principal amount of its 7.0% senior notes, CNA also redeemed the $30 million outstanding aggregate principal amount of its variable rate senior notes due September 15, 2036.

CNA has a five-year $250 million senior unsecured revolving credit facility with a syndicate of banks which may be used for general corporate purposes. As of December 31, 2018, CNA had no outstanding borrowings under the credit agreement and was in compliance with all covenants.

Diamond Offshore

In 2018, Diamond Offshore entered into a new senior five-year revolving credit agreement with maximum borrowings available of $950 million which may be used for general corporate purposes, including investments, acquisitions and capital expenditures. The new credit agreement, which expires on October 2, 2023, provides for a swingline subfacility of $100 million and a letter of credit subfacility in the amount of $250 million. Diamond Offshore also amended its existing credit agreement to reduce the aggregate principal amounts of commitments to $325 million, of which, $40 million matures in March of 2019, $60 million matures in October of 2019 and $225 million matures in October of 2020. As of December 31, 2018, Diamond Offshore had no outstanding borrowings under its credit agreements and was in compliance with all covenant requirements under its credit agreements.

Boardwalk Pipeline

In 2018, Boardwalk Pipeline retired at maturity the $185 million outstanding aggregate principal amount of its 5.2% senior notes with borrowings under its credit facility.

Boardwalk Pipeline has a revolving credit facility having aggregate lending commitments of $1.5 billion maturing May 26, 2022. As of December 31, 2018, Boardwalk Pipeline had $580 million of outstanding borrowings under its credit agreement and was in compliance with all covenants.

Consolidated Container

Consolidated Container has a $125 million asset based lending facility (“ABL facility”) maturing May 23, 2022. As of December 31, 2018, Consolidated Container had $9 million of outstanding borrowings under its ABL facility and was in compliance with all covenants.