NOTE 7 DEBT AND CREDIT FACILITIES


		Weighted Average				Weighted Average
		Interest Rate for the				Interest Rate for the
(unaudited)		Three Months Ended			December 31,	Year Ended
(millions of dollars)	March 31, 2019	March 31, 2019			2018	December 31, 2018
TC PipeLines, LP
Senior Credit Facility due 2021	—	3.61	%		40	3.14	%
2013 Term Loan Facility due 2022	500	3.73	%		500	3.23	%
4.65% Unsecured Senior Notes due 2021	350	4.65	%	(a)	350	4.65	%	(a)
4.375% Unsecured Senior Notes due 2025	350	4.375	%	(a)	350	4.375	%	(a)
3.90 % Unsecured Senior Notes due 2027	500	3.90	%	(a)	500	3.90	%	(a)
GTN
5.29% Unsecured Senior Notes due 2020	100	5.29	%	(a)	100	5.29	%	(a)
5.69% Unsecured Senior Notes due 2035	150	5.69	%	(a)	150	5.69	%	(a)
Unsecured Term Loan Facility due 2019	35	3.45	%		35	2.93	%
PNGTS
Revolving Credit Facility due 2023	27	3.75	%		19	3.55	%
Tuscarora
Unsecured Term Loan due 2020	24	3.63	%		24	3.10	%
North Baja
Unsecured Term Loan due 2021	50	3.56	%		50	3.54	%
	2,086				2,118
Less: unamortized debt issuance costs and debt discount	10				10
Less: current portion	36				36
	2,040				2,072

(a) Fixed interest rate

TC PipeLines, LP

The Partnership’s Senior Credit Facility consists of a $500 million senior revolving credit facility with a banking syndicate, maturing November 10, 2021. During the three months ended March 31, 2019, the Partnership repaid all amounts outstanding under its Senior Credit Facility and there was no outstanding balance at March 31, 2019 (December 31, 2018 - $40 million).

The LIBOR-based interest rate on the Senior Credit Facility was 3.77 percent at December 31, 2018.

As of March 31, 2019, the variable interest rate exposure related to the 2013 Term Loan Facility was hedged using interest rate swaps at an average rate of 3.26 percent (December 31, 2018 – 3.26 percent). Prior to hedging activities, the LIBOR-based interest rate on the 2013 Term Loan Facility was 3.74 percent at March 31, 2019 (December 31, 2018 – 3.60 percent).

The Senior Credit Facility and the 2013 Term Loan Facility require the Partnership to maintain a certain leverage ratio (debt to adjusted cash flow [net income plus cash distributions received, extraordinary losses, interest expense, expense for taxes paid or accrued, and depreciation and amortization expense less equity earnings and extraordinary gains]) no greater than 5.00 to 1.00 for each fiscal quarter, except for the fiscal quarter and the two following fiscal quarters in which one or more acquisitions has been executed, in which case the leverage ratio is to be no greater than 5.50 to 1.00. The leverage ratio was 3.03 to 1.00 as of March 31, 2019.

GTN

GTN’s Unsecured Senior Notes, along with GTN’s Unsecured Term Loan Facility contain a covenant that limits total debt to no greater than 70 percent of GTN’s total capitalization. GTN’s total debt to total capitalization ratio at March 31, 2019 was 42.5 percent.

The LIBOR-based interest rate on GTN’s Unsecured Term Loan Facility was 3.44 percent at March 31, 2019 (December 31, 2018 – 3.30 percent).

PNGTS

PNGTS’ Revolving Credit Facility requires PNGTS to maintain a leverage ratio not greater than 5.00 to 1.00. The leverage ratio was 0.47 to 1.00 as of March 31, 2019.

The LIBOR-based interest rate on PNGTS’ Revolving Credit Facility was 3.74 percent at March 31, 2019 (December 31, 2018 – 3.60 percent).

Tuscarora

Tuscarora’s Unsecured Term Loan contains a covenant that requires Tuscarora to maintain a debt service coverage ratio (cash available from operations divided by a sum of interest expense and principal payments) of greater than or equal to 3.00 to 1.00. As of March 31, 2019, the ratio was 10.14 to 1.00.

The LIBOR-based interest rate on the Tuscarora’s Unsecured Term Loan Facility was 3.61 percent at March 31, 2019 (December 31, 2018 – 3.47 percent).

North Baja

North Baja’s Term Loan Facility contains a covenant that limits total debt to no greater than 70 percent of North Baja’s total capitalization. North Baja’s total debt to total capitalization ratio at March 31, 2019 was 38.11 percent.

The LIBOR-based interest rate on North Baja’s Term Loan Facility was 3.56 percent at March 31, 2019 (December 31, 2018 - 3.54 percent).

Partnership (TC PipeLines, LP and its subsidiaries)

At March 31, 2019, the Partnership was in compliance with its financial covenants, in addition to the other covenants which include restrictions on entering into mergers, consolidations and sales of assets, granting liens, material amendments to the Fourth Amended and Restated Agreement of Limited Partnership (Partnership Agreement), incurring additional debt and distributions to unitholders.

The principal repayments required of the Partnership on its debt are as follows:


(unaudited)
(millions of dollars)		Principal payments
2019		36
2020		123
2021		400
2022		500
2023		27
Thereafter		1,000
		2,086