Note 6 - Debt

The Company has a revolving credit arrangement with various lenders to provide back-up credit liquidity support for its commercial paper program. Credit commitments under this revolving credit arrangement totaled $500.0 million at December 31, 2012, with no amounts borrowed. This revolving credit arrangement has interest-rate options generally below the prime interest rate and carries commitment fees on the unused balance. The Company amended its revolving credit arrangement on September 2, 2011, by increasing the lender commitments from $350.0 million to $500.0 million and extending the maturity date from July 1, 2013, to August 31, 2016. The amendment also replaced the previous debt covenant ratio of consolidated funded debt to EBITDA with a new ratio of consolidated funded debt to capitalization. On October 29, 2012, the Company amended its revolving credit arrangement to enable Questar Gas to issue $150.0 million in the private placement market in December 2012. Under both amendments, consolidated funded debt cannot exceed 70% of consolidated capitalization. The Company is in compliance with this covenant at December 31, 2012.

The details of short-term debt are as follows:



	December 31,
	2012			2011
	(in millions)
Commercial paper with variable interest rates	$	263.0		$	219.0
Weighted-average interest rate	0.31		%	0.29		%

Questar centrally manages cash. Questar makes loans to Questar Gas and Questar Pipeline under a short-term borrowing arrangement. Amounts loaned earn an interest rate that is identical to the interest rate paid on amounts borrowed. The following table details the notes payable to Questar from Questar Gas and the associated interest rate. There were no notes payable to Questar from Questar Pipeline at December 31, 2012 or 2011.



	December 31,
	2012			2011
	(in millions)
Questar Gas
Notes payable to Questar with variable interest rates	$	166.1		$	142.7
Interest rate	0.39		%	0.41		%

All short- and long-term debt and the revolving credit arrangement are unsecured obligations and rank equally with all other unsecured liabilities. The terms of the Questar Corporation, Questar Gas and Questar Pipeline long-term debt obligations do not have dividend-payment restrictions.

In December 2012, Questar Gas issued $110.0 million of 15-year Senior Notes at 3.28% and $40.0 million of 12-year Senior Notes at 2.98% in the private placement market. The proceeds of approximately $148.8 million, after deducting estimated issuance costs, were used to refinance $91.5 million of long-term that matured in 2012, $40.0 million that matured in January 2013 and $2.0 million maturing in September 2013, and for general corporate purposes. These maturities had a weighted-average interest rate of 6.06%.

In December 2011, Questar Pipeline completed a public offering of $180.0 million in aggregate principal amount of its 4.875% Senior Notes due December 2041. The net proceeds from the offering of approximately $138.9 million, after deducting the underwriting discount, estimated offering expenses and swap settlements, resulted in an effective interest rate of 6.66%. These proceeds were used to refinance a portion of $100.0 million of long-term notes that matured in June 2011 with an interest rate of 7.09% and $80.0 million of long-term notes that matured in September 2011 with an interest rate of 6.57%.

The details of long-term debt are as follows:



	December 31,
	2012			2011
	(in millions)
Questar Corporation
2.75% Notes due 2016	$	250.0		$	250.0
Questar Gas
6.30% to 6.91% Medium-term Notes due 2012	—			91.5
5.00% to 6.89% Medium-term Notes due 2013 to 2018	126.5			126.5
6.30% Notes due 2018	50.0			50.0
2.98% Notes due 2024	40.0			—
3.28% Notes due 2027	110.0			—
7.20% Notes due 2038	100.0			100.0
Total Questar Gas long-term debt	426.5			368.0
Questar Pipeline
6.45% and 6.48% Medium-term Notes due 2015 and 2018	30.1			30.1
5.83% Notes due 2018	250.0			250.0
4.875% Notes due 2041	180.0			180.0
Total Questar Pipeline long-term debt	460.1			460.1
Total long-term debt outstanding	1,136.6			1,078.1
Less current portion	(42.0		)	(91.5		)
Less unamortized debt discount	(2.3		)	(2.4		)
Plus unamortized debt premium	0.8			1.0
Plus fair value hedge adjustment	5.8			7.8
Total long-term debt, less current portion	$	1,098.9		$	993.0

The aggregate maturities of Questar Corporation, Questar Gas and Questar Pipeline long-term debt for the next five years are as follows:



	Questar Corporation		Questar Gas		Questar Pipeline		Total
	Years Ending December 31,
	(in millions)
2013	$	—	$	42.0	$	—	$	42.0
2014	—		—		—		—
2015	—		—		25.1		25.1
2016	250.0		—		—		250.0
2017	—		14.5		—		14.5