Long-Term Debt

3 Months Ended

Mar. 31, 2020

At March 31, 2020 and December 31, 2019, the Company’s consolidated long-term debt balance comprised of the following ($ in millions):



	March 31, 2020			December 31, 2019
IMTT	$	1,109		$	1,109
Atlantic Aviation	1,287			1,015
MIC Hawaii	194			195
MIC Corporate	988			388
Total	3,578			2,707
Current portion	(286		)	(12		)
Long-term portion	3,292			2,695
Unamortized deferred financing costs⁽¹⁾	(39		)	(41		)
Long-term portion less unamortized debt discount and deferred financing costs	$	3,253		$	2,654

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(1)	The weighted average remaining life of the deferred financing costs at March 31, 2020 was 5.1 years.

At March 31, 2020, the total undrawn capacity on the revolving credit facilities was $736 million excluding letters of credit outstanding of $12 million. On March 17, 2020, the Company drew down a total of $874 million on two revolving credit facilities. This comprised of $599 million on its $600 million holding company level revolving credit facility and $275 million on the $350 million revolving credit facility at Atlantic Aviation. Although the Company does not have immediate need for the additional liquidity, the drawdowns were deemed prudent to preserve financial flexibility in light of the disruption in the global markets and the unpredictability of the sustained impact to its businesses caused by COVID-19. See Atlantic Aviation below for discussions on subsequent repayment and amendment to its revolving credit facility.

MIC Corporate

At March 31, 2020, MIC Corporate had $599 million of its $600 million senior secured revolving credit facility drawn. The proceeds of this borrowing may be used for working capital, general corporate or other purposes. The senior secured revolving credit facility was undrawn at December 31, 2019.

2.00% Convertible Senior Notes due October 2023 (2.00% Convertible Senior Notes)

At March 31, 2020 and December 31, 2019, the Company had $389 million and $388 million, respectively, outstanding on its seven-year, 2.00% Convertible Senior Notes. At March 31, 2020 and December 31, 2019, the fair value of the liability component of the Notes was approximately $310 million and $370 million, respectively. At March 31, 2020, the conversion rate was 9.0290 shares of common stock per $1,000 principal amount.

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



	March 31, 2020			December 31, 2019
Liability Component:
Principal	$	403		$	403
Unamortized debt discount	(14		)	(15		)
Long-term debt, net of unamortized debt discount	389			388
Unamortized deferred financing costs	(6		)	(6		)
Net carrying amount	$	383		$	382
Equity Component	$	27		$	27

For the quarters ended March 31, 2020 and 2019, the Company incurred interest expense of $3 million related to the 2.00% Convertible Senior Notes, of which $1 million primarily related to the amortization of debt discount.

IMTT

At March 31, 2020 and December 31, 2019, IMTT had $600 million of fixed rate senior notes, $509 million of Tax-Exempt Bonds, and $600 million in revolving credit facilities that remained undrawn. At March 31, 2020 and December 31, 2019, the fair value of the fixed rate senior notes was approximately $540 million and $635 million, respectively.

Atlantic Aviation

At March 31, 2020 and December 2019, Atlantic Aviation had $1,012 million and $1,015 million, respectively, outstanding on its seven-year senior secured first lien term loan facility. Atlantic Aviation also had a five-year, $350 million senior secured first lien revolving credit facility that was undrawn at December 31, 2019. During the quarter ended March 31, 2020, Atlantic Aviation borrowed $275 million on its revolving credit facility.

On April 30, 2020, Atlantic Aviation fully repaid the outstanding balance on its revolving credit facility and effective May 4, 2020, reduced the commitments on this facility to $10 million solely with respect to letters of credit currently outstanding. The amendment of the facility eliminates any leverage-based maintenance covenant on the Atlantic Aviation term loan as long as the letters of credit issued under the facility are cash collateralized and rolled over to standalone letters of credit facilities upon renewal.

MIC Hawaii

At March 31, 2020 and December 2019, Hawaii Gas had $100 million of fixed rate senior notes outstanding, that had a fair value of approximately $100 million and $105 million, respectively. Hawaii Gas also had an $80 million term loan outstanding and a $60 million revolving credit facility that was undrawn at March 31, 2020 and December 31, 2019.

In addition, MIC Hawaii's solar facilities had a term loan outstanding of $14 million and $15 million at March 31, 2020 and December 31, 2019, respectively.