NOTE 5

LONG-TERM DEBT

Long-term debt consisted of the following:

Balance at December 31, (in millions)	2016			2015
1.50% senior notes due 2018	$	500		$	500
9.25% senior debentures due 2019	116			116
4.10% senior notes due 2021	1,249			1,249
3.125% senior notes due 2022	813			813
2.60% senior notes due 2022	400			—
2.70% senior notes due 2023	1,191			1,191
8.75% medium-term notes due 2023	22			22
3.50% senior notes due 2025	750			750
3.40% senior notes due 2026	1,150			—
3.00% senior notes due 2027	750			—
7.20% senior debentures due 2028	82			82
8.45% senior debentures due 2029	116			116
4.625% senior notes due 2045	750			750
4.40% senior notes due 2046	1,200			—
4.10% senior notes due 2047	750			—
2.50% senior notes due 2016	—			700
4.125% senior notes due 2016	—			750
1.75% senior notes due 2017	—			1,250
Variable rate bonds due 2030 (0.9% and 0.15% as of December 31, 2016 and 2015, respectively )	68			68
	9,907			8,357
Less:
Unamortized discount, net	(36		)	(24		)
Debt issuance costs	(52		)	(28		)
Current maturities	—			(1,450		)
Total	$	9,819		$	6,855

Occidental has a bank credit facility (Credit Facility) with a $2.0 billion commitment expiring in 2019. No amounts have been drawn under this Credit Facility. Up to $1.0 billion of the Credit Facility is available in the form of letters of credit. Borrowings under the Credit Facility bear interest at various benchmark rates, including LIBOR, plus a margin based on Occidental's senior debt ratings. Additionally, Occidental paid average annual facility fees of 0.08 percent in 2016 on the total commitment amounts of the Credit Facility.

The Credit Facility provides for the termination of loan commitments and requires immediate repayment of any outstanding amounts if certain events of default occur. The Credit Facility and other debt agreements do not contain material adverse change clauses or debt ratings triggers that could restrict Occidental's ability to borrow or that would permit lenders to terminate their commitments or accelerate debt.

As of December 31, 2016, under the most restrictive covenants of its financing agreements, Occidental had substantial capacity for additional unsecured borrowings, the payment of cash dividends and other distributions on, or acquisitions of, Occidental stock.

In November 2016, Occidental issued $1.5 billion of senior notes, comprised of $750 million of 3.0-percent senior notes due 2027 and $750 million of 4.1-percent senior notes due 2047. Occidental received net proceeds of $1.49 billion. Interest on the senior notes is payable semi-annually in arrears in February and August each year for each series of senior notes beginning August 15, 2017. Occidental will use the proceeds for general corporate purposes.

In May and June 2016, respectively, Occidental utilized part of the proceeds from the April 2016 senior notes offering (described below) to exercise the early redemption option on $1.25 billion of 1.75-percent senior notes due in the first quarter of 2017 and to retire all $750 million of 4.125-percent senior notes that matured in June 2016.

In April 2016, Occidental issued $2.75 billion of senior notes, comprised of $0.4 billion of 2.6-percent senior notes due 2022, $1.15 billion of 3.4-percent senior notes due 2026 and $1.2 billion of 4.4-percent senior notes due 2046. Occidental received net proceeds of approximately $2.72 billion. Interest on the senior notes is payable semi-annually in arrears in April and October of each year for each series of senior notes, beginning on October 15, 2016. Occidental used a portion of the proceeds to retire debt in May and June 2016, and used the remaining proceeds for general corporate purposes.

In February 2016, Occidental repaid $700 million of 2.5-percent senior notes that matured.

Occidental has provided guarantees on Dolphin Energy's debt, which are limited to certain political and other events. At December 31, 2016 and 2015, Occidental’s total guarantees were not material and a substantial majority of the amounts consisted of limited recourse guarantees on approximately $296 million and $318 million, respectively, of Dolphin’s debt. The fair value of the guarantees was immaterial.

At December 31, 2016, principal payments on long-term debt aggregated approximately $9.9 billion, of which zero is due in 2017, $0.5 billion is due in 2018, $0.1 billion is due in 2019, zero is due in 2020, $1.3 billion is due in 2021 and $8 billion is due in 2022 and thereafter.

Occidental estimates the fair value of fixed-rate debt based on the quoted market prices for those instruments or on quoted market yields for similarly rated debt instruments, taking into account such instruments' maturities. The estimated fair values of Occidental’s debt at December 31, 2016 and 2015, substantially all of which were classified as Level 1, were approximately $10.9 billion and $8.4 billion, respectively, compared to carrying values of approximately $9.8 billion and $8.3 billion, respectively. Occidental's exposure to changes in interest rates relates primarily to its variable-rate, long-term debt obligations, and is not material. As of December 31, 2016 and 2015, variable-rate debt constituted approximately one percent of Occidental's total debt.