Debt Obligations

6 Months Ended

Jun. 30, 2012

DEBT OBLIGATIONS:

The following table sets forth the debt obligations of the Company at the dates indicated:



	Successor		Predecessor
	June 30, 2012		December 31, 2011
6.05% Senior Notes due 2013	$	250,000	$	250,000
6.20% Senior Notes due 2017	300,000		300,000
8.125% Senior Notes due 2019	150,000		150,000
7.00% Senior Notes due 2029	66,305		66,305
7.00% Senior Notes due 2018	400,000		400,000
Term Loans due 2012	—		797,386
Term Loan due 2015	455,000		—
Net premiums on long-term debt	—		2,924
Unamortized fair value adjustments	150,688		—
Total debt outstanding	1,771,993		1,966,615
Current portion of long-term debt	—		(342,386		)
Total long-term debt	$	1,771,993	$	1,624,229
Total fair value of consolidated debt obligations	$	1,795,273	$	2,131,243

The fair value of the Company’s term loans as of June 30, 2012 and December 31, 2011 was determined using the market approach, which utilized Level 2 inputs consisting of reported recent loan transactions for parties of similar credit quality and remaining life, as there is no active secondary market for loans of that type and size.

The fair value of the Company’s other long-term debt as of June 30, 2012 and December 31, 2011 was also determined using the market approach, which utilized observable market data to corroborate the estimated credit spreads and prices for the Company’s non-bank long-term debt securities in the secondary market. Those valuations were based in part upon the reported trades of the Company’s non-bank long-term debt securities where available and the actual trades of debt securities of similar credit quality and remaining life where no secondary market trades were reported for the Company’s non-bank long-term debt securities.

Term Loans. On March 26, 2012, the Company retired the $465 million term loan due June 2012 ($342.4 million of which was outstanding) of its wholly-owned LNG Holdings subsidiary, utilizing a portion of the $455 million in merger consideration received in connection with the Citrus Merger.

In February 2012, the Company refinanced LNG Holdings’ $455 million term loan due March 2012 with an unsecured three-year term loan facility due February 2015, with LNG Holdings as borrower and PEPL and Trunkline LNG as guarantors and a floating interest rate tied to LIBOR plus a margin based on the rating of PEPL’s senior unsecured debt.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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