Debt and Credit Facility

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt and Credit Facility

5. Debt and Credit Facility

Senior Notes

During the years ended December 31, 2021, December 31, 2020 and December 31, 2019, we issued fixed rate unsecured notes with varying maturity dates (“Senior Notes”). The stated interest rates and aggregate principal amounts of our Senior Notes were: (i) 4.50% and $550.0 million (“4.50% Senior Notes”); (ii) 6.50% and $350.0 million (“6.50% Senior Notes”); and (iii) 4.625% and

$500.0 million (“4.625% Senior Notes”). Our Senior Notes do not require us to make any mandatory redemptions or sinking fund payments. The following table summarizes key details of our Senior Notes:

				Outstanding (in millions of dollars)
	Issuance Date	Maturity	Effective Interest Rate	As of September 30, 2022			As of December 31, 2021
4.50% Senior Notes	May 2021	June 2031	4.7%	$	550.0		$	550.0
6.50% Senior Notes1	April/May 2020	May 2025	6.8%		—			—
4.625% Senior Notes	November 2019	March 2028	4.8%		500.0			500.0
Total debt					1,050.0			1,050.0
Unamortized issuance costs					(12.4	)		(13.7	)
Total carrying amount				$	1,037.6		$	1,036.3

1In May 2021, we redeemed in full the remaining balance of our 6.50% Senior Notes at a redemption price of 108.83% of the principal amount plus $1.3 million of accrued and unpaid interest for a total net cash outflow of $382.2 million. Upon redemption of the 6.50% Senior Notes, we recorded a loss on extinguishment of debt of $35.9 million within Other income (expense), net, on our Statements of Consolidated Income (Loss), which included the premium payment of $30.9 million and a write-off of the remaining unamortized premium and debt issuance costs of $5.0 million.

The following table presents the fair value of our outstanding Senior Notes, which are Level 1 liabilities (in millions of dollars):

	As of September 30, 2022		As of December 31, 2021
4.50% Senior Notes	$	399.1	$	542.6
4.625% Senior Notes	$	410.4	$	506.9

Revolving Credit Facility

In April 2022, we entered into Amendment No. 3 to our revolving credit facility with Wells Fargo Bank, National Association, the administrative agent, and the other financial institutions party thereto (as amended, the “Revolving Credit Facility”). The Revolving Credit Facility among others: (i) increased the commitment from $375.0 million to $575.0 million (of which up to a maximum of $50.0 million may be utilized for letters of credit); (ii) extended the maturity date from the earlier of (a) February 2024 (if certain conditions were met) and (b) October 2024 to April 2027; (iii) removed eligible equipment from the borrowing base and as collateral; and (iv) updated relevant benchmark provisions to SOFR instead of LIBOR.

The following table summarizes availability and usage of our Revolving Credit Facility as determined by a borrowing base calculated as of September 30, 2022 (in millions of dollars):

Revolving Credit Facility borrowing commitment	$	575.0
Borrowing base availability	$	572.4
Less: Outstanding borrowings under Revolving Credit Facility		—
Less: Outstanding letters of credit under Revolving Credit Facility		(17.4	)
Remaining borrowing availability	$	555.0

Interest Expense

Interest expense relating to our Senior Notes and Revolving Credit Facility was as follows (in millions of dollars):

	Quarter Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Senior Notes interest expense, including debt issuance cost amortization	$	12.4		$	12.4		$	37.2		$	36.6
Revolving Credit Facility commitment fees and finance cost amortization		0.6			0.3			1.6			1.2
Interest expense capitalized as construction in progress		(0.9	)		(0.2	)		(2.3	)		(0.6	)
Total interest expense	$	12.1		$	12.5		$	36.5		$	37.2