Debt

9 Months Ended

Sep. 30, 2019

Revolving Credit Facility

In September 2019, we entered into a fourth amendment to our unsecured revolving credit facility (the “Credit Facility”) to reduce the maximum borrowing from $3.4 billion to $3.0 billion and extended the maturity date by one year to May 28, 2023. As of September 30, 2019, we had no borrowings against our $3.0 billion Credit Facility, as described below or under our U.S. commercial paper program that is backed by the Credit Facility.

The Credit Facility includes a covenant requiring our debt-to-capitalization ratio not to exceed 65% as of the last day of each fiscal quarter. In the event of a default, the lenders holding more than half of the commitments may terminate the commitments under the Credit Facility and require the immediate repayment of all outstanding borrowings and the cash collateralization of all outstanding letters of credit under the Credit Facility. As of September 30, 2019, we were in compliance with this covenant with a debt-to-capitalization ratio of 31%.

Long-term debt

At September 30, 2019, we had $5.5 billion of total debt outstanding, of which $600 million was due June 2020. On October 3, 2019, we redeemed our $600 million 2.7% senior unsecured notes due June 2020. After considering this debt redemption, our next debt maturity is the $1.0 billion 2.8% senior unsecured notes due 2022.

Debt Issuance

On October 1, 2019, we closed a $600 million remarketing to investors of sub-series A bonds which are part of the $1.0 billion St. John the Baptist, State of Louisiana revenue refunding bonds originally issued and purchased in December 2017. The $600 million in proceeds from the conversion and remarketing were used to pay the purchase price of our converted 2017 bonds on the closing date. We continue to own the remaining $400 million of the revenue refunding bonds and have the right to convert and remarket them to investors at any time up to the 2037 maturity date.

The following table further summarizes this transaction.



Sub-Series A Bonds	Par Amount	Interest Rate	Mandatory Purchase Date	Maturity Date
Sub-series A-1 Bonds	$200 million	2.00%	April 1, 2023	June 1, 2037
Sub-series A-2 Bonds	$200 million	2.10%	July 1, 2024	June 1, 2037
Sub-series A-3 Bonds	$200 million	2.20%	July 1, 2026	June 1, 2037