Long-Term Debt

3 Months Ended

Mar. 31, 2019

LONG-TERM DEBT

Our long-term debt consisted of the following (dollars in thousands):



	Interest rate at March 31, 2019	March 31, 2019			December 31, 2018
Senior unsecured notes due 2022	5.6250%	$	400,000		$	400,000
Senior unsecured notes due 2023	5.6250%	350,000			350,000
Senior unsecured notes due 2025	6.3750%	325,000			325,000
Senior unsecured notes due 2026	7.2500%	300,000			300,000
SemGroup $1.0 billion corporate revolving credit facility⁽¹⁾
Alternate base rate borrowings	—	—			24,500
Eurodollar borrowings	—	—			95,000
HFOTCO term loan B ⁽²⁾	5.2500%	595,500			597,000
HFOTCO tax exempt notes payable due 2050	3.5178%	225,000			225,000
HFOTCO $75 million revolving credit facility	—	—			—
SemCAMS Midstream term loan A⁽³⁾
Alternate base rate borrowings	4.5501%	262,096			—
Prime rate borrowings	5.4500%	4			—
SemCAMS Midstream C$450 million revolving credit facility⁽³⁾
Alternate base rate borrowings	4.5198%	18,722			—
Prime rate borrowings	5.4500%	26,210			—
Unamortized premium (discount) and debt issuance costs, net		(34,949		)	(31,666		)
Total long-term debt, net		2,467,583			2,284,834
Less: current portion of long-term debt		6,000			6,000
Noncurrent portion of long-term debt, net		$	2,461,583		$	2,278,834


(1)	SemGroup $1.0 billion corporate revolving credit facility matures on March 15, 2021.


(2)	HFOTCO term loan B is due in quarterly installments of $1.5 million with a final payment due on June 26, 2025.


(3)	SemCAMS Midstream term note A and C$450 million revolving credit facility mature on February 25, 2024.

SemCAMS Midstream Credit Agreement

On February 25, 2019, SemCAMS Midstream entered into a Credit Agreement (the “Credit Agreement”), together with The Toronto-Dominion Bank, as administrative agent, providing for a C$350 million senior secured term loan facility and a C$450 million senior secured revolving credit facility. Both facilities under the Credit Agreement mature on February 25, 2024. SemCAMS Midstream may incur additional term loans and revolving commitments in an aggregate amount not to exceed C$250 million, subject to receiving commitments for such additional term loans or revolving commitments from either new lenders or increased commitments from existing lenders.

Pledges and guarantees

Our senior unsecured notes are guaranteed by certain subsidiaries. See Note 18 for additional information.

Our $1.0 billion corporate revolving credit facility is guaranteed by all of SemGroup’s material wholly-owned domestic subsidiaries, with the exception of Maurepas Pipeline LLC and HFOTCO, and secured by a lien on substantially all of the property and assets of SemGroup Corporation and the other loan parties, subject to customary exceptions.

The HFOTCO term loan B and HFOTCO tax exempt notes payable are secured by substantially all of the assets of HFOTCO and its immediate parent, Buffalo Gulf Coast Terminals LLC. The HFOTCO tax exempt notes payable have a priority position over the HFOTCO term loan B.

The SemCAMS Midstream Credit Agreement is guaranteed on a non-recourse basis by each of SemGroup and KKR, limited to each respective entity’s equity interests in SemCAMS Midstream, and fully guaranteed by any future material subsidiary of SemCAMS Midstream. The obligations under the Credit Agreement and related lender hedge instruments and cash management instruments are secured by a lien on substantially all of the property and assets of SemCAMS Midstream and the other loan parties, subject to customary exceptions.

Letters of credit

We had the following outstanding letters of credit at March 31, 2019 (dollars in thousands):



SemGroup $1.0 billion revolving credit facility	2.50%	$	27,335
Secured bi-lateral⁽¹⁾	1.75%	$	18,875

(1) Secured bi-lateral letters of credit are external to the SemGroup $1.0 billion revolving credit facility and do not reduce availability for borrowing on the credit facility.

Capitalized interest

During the three months ended March 31, 2019 and 2018, we capitalized interest of $1.7 million and $3.1 million, respectively.

Fair value

We estimate the fair value of our senior unsecured notes based on unadjusted, transacted market prices near the measurement date. Our other long-term debts are estimated to be carried at fair value as a result of the recent timing of borrowings or rate resets. We estimate the fair value of our consolidated long-term debt, including current maturities, to be approximately $2.5 billion at March 31, 2019, which is categorized as a Level 2 measurement.