Debt Obligations

9 Months Ended

Sep. 30, 2012

DEBT OBLIGATIONS:

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



	Successor			Predecessor
	September 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	142,874			—
Total debt outstanding	1,764,179			1,966,615
Current portion of long-term debt	(260,504		)	(342,386		)
Total long-term debt	$	1,503,675		$	1,624,229

The Company has $250 million of senior notes which mature within the next twelve months. The Company currently expects to refinance all or a portion of the debt upon maturity or, alternatively, to retire all or a portion of the debt with proceeds from repayment of the note receivable from Southern Union Company, which funds are available to the Company on a demand basis.

Based on the estimated borrowing rates currently available to us and our subsidiaries for loans with similar terms and average maturities, the aggregate fair value of our consolidated debt obligations at September 30, 2012 and December 31, 2011 was $1.81 billion and $2.13 billion, respectively. As of September 30, 2012 and December 31, 2011, the aggregate carrying amount of our consolidated debt obligations was $1.76 billion and $1.97 billion, respectively. The fair value of our consolidated debt obligations is a Level 2 valuation based on the observable inputs used for similar liabilities.

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 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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