Long-Term Debt

9 Months Ended

Sep. 30, 2019

At September 30, 2019 and December 31, 2018, the Company’s consolidated long-term debt balance comprised of the following ($ in millions):



	September 30, 2019			December 31, 2018
IMTT	$	1,109		$	1,109
Atlantic Aviation	1,017			1,025
MIC Hawaii	195			196
MIC Corporate	387			734
Total	2,708			3,064
Current portion	(11		)	(361		)
Long-term portion	2,697			2,703
Unamortized deferred financing costs⁽¹⁾	(43		)	(50		)
Long-term portion less unamortized debt discount and deferred financing costs	$	2,654		$	2,653

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(1)	The weighted average remaining life of the deferred financing costs at September 30, 2019 was 5.5 years.

At September 30, 2019, the total undrawn capacity on the revolving credit facilities was $1,610 million excluding letters of credit outstanding of $13 million.

MIC Corporate

At September 30, 2019 and December 31, 2018, MIC Corporate had a $600 million senior secured revolving credit facility that remained undrawn.

2.875% Convertible Senior Notes due July 2019

At December 31, 2018, the Company had $350 million aggregate principal outstanding on its five-year, 2.875% Convertible Senior Notes due July 2019, which approximated its fair value. On July 15, 2019, at maturity, the Company fully repaid the outstanding balance on the Notes using cash on hand.

2.00% Convertible Senior Notes due October 2023

At September 30, 2019 and December 31, 2018, the Company had $387 million and $384 million, respectively, outstanding on its seven-year, 2.00% Convertible Senior Notes due October 2023. At September 30, 2019, the fair value of the liability component of the Notes were approximately $355 million. On October 13, 2019, the anniversary of the Note issuance, the Company did not increase the conversion rate of 9.0290 shares of common stock per $1,000 principal amount as there was no change to the quarterly dividend amount paid from the last anniversary date.

The 2.00% Convertible Senior Notes due October 2023 consisted of the following ($ in millions):



	September 30, 2019			December 31, 2018
Liability Component:
Principal	$	403		$	403
Unamortized debt discount	(16		)	(19		)
Long-term debt, net of unamortized debt discount	387			384
Unamortized deferred financing costs	(6		)	(7		)
Net carrying amount	$	381		$	377
Equity Component	$	27		$	27

For the quarter and nine months ended September 30, 2019 and 2018, the Company incurred interest expense of $3 million and $10 million, respectively, related to the 2.00% Convertible Senior Notes due October 2023 which primarily includes $1 million and $4 million, respectively, related to the amortization of debt discount and deferred financing costs.

IMTT

In December 2018, IMTT entered into the Second Amendment to Credit Agreement (the Amendment) which, among other things, extended the maturity date of its $600 million revolving credit facilities from May 21, 2020 to December 5, 2023 and extended the maturity date of its $509 million Tax Exempt Bonds purchase facility from May 21, 2022 to December 5, 2025. In connection with the Amendment, supplemental indentures were entered into with respect to the $509 million of outstanding Tax Exempt Bonds. The Tax Exempt Bonds were reissued and sold to certain lenders under the IMTT Credit Agreement pursuant to the bond purchase facility. The supplemental indentures provide for (i) an interest rate on the Tax Exempt Bonds of 80% of one month LIBOR plus applicable margin plus 0.45% and (ii) an extension of the date on which holders have the right to require repurchase of the Tax Exempt Bonds from May 21, 2022 to December 5, 2025.

At September 30, 2019 and December 31, 2018, the $600 million revolving credit facilities were undrawn. IMTT also had $600 million of fixed rate senior notes outstanding that had a fair value of approximately $630 million at September 30, 2019.

Atlantic Aviation

In December 2018, Atlantic Aviation refinanced its debt and entered into a credit agreement (the New AA Credit Agreement) that provides for a seven-year $1,025 million senior secured first lien term loan facility. At September 30, 2019 and December 31, 2018, Atlantic Aviation also had a five-year, $350 million senior secured first lien revolving credit facility that was undrawn.

MIC Hawaii

At September 30, 2019, Hawaii Gas had $100 million of fixed rate senior notes outstanding, that had a fair value of approximately $105 million, and an $80 million term loan outstanding. The remaining balance of $15 million related to a term loan for the solar facilities in Hawaii. Hawaii Gas also has a $60 million revolving credit facility that was undrawn at September 30, 2019 and December 31, 2018.