Long-Term Debt

9 Months Ended

Sep. 30, 2019

LONG-TERM DEBT

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



	Interest rate at September 30, 2019	September 30, 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⁾	4.8000%	592,500			597,000
HFOTCO tax exempt notes payable due 2050	2.9513%	225,000			225,000
SemCAMS Midstream term loan A⁽³⁾
Banker’s acceptance borrowings	4.4840%	264,309			—
Prime rate borrowings	5.4500%	5			—
SemCAMS Midstream C$525 million revolving credit facility⁽⁴⁾
Banker’s acceptance borrowings	4.4961%	64,190			—
Prime rate borrowings	5.4500%	3,021			—
SemCAMS Midstream KAPS Facility⁽⁵⁾	—	—			—
Unamortized premium (discount) and debt issuance costs, net		(30,787		)	(31,666		)
Total long-term debt, net		2,493,238			2,284,834
Less: current portion of long-term debt		15,912			6,000
Noncurrent portion of long-term debt, net		$	2,477,326		$	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 loan A is due in quarterly installments of C$4.4 million beginning March 31, 2020 and increasing to C$6.6 million on March 31, 2022 with a final payment on February 25, 2024.


(4)	SemCAMS Midstream C$525 million (US$396.5 million at the September 30, 2019 exchange rate) revolving credit facility matures on February 25, 2024.


(5)	SemCAMS Midstream KAPS Facility matures on June 13, 2024.

SemCAMS Midstream Credit Agreement

On February 25, 2019, SemCAMS Midstream entered into a credit agreement, together with The Toronto-Dominion Bank, as administrative agent, providing for a C$350 million (US$264.3 million at the September 30, 2019 exchange rate) senior secured term loan facility and a C$450 million (US$339.8 million at the September 30, 2019 exchange rate) senior secured revolving credit facility. On June 13, 2019, SemCAMS Midstream entered into an amended and restated credit agreement (the “Credit Agreement”), which increased the senior secured revolving credit facility capacity to C$525 million (US$396.5 million at the September 30, 2019 exchange rate) and added a C$300 million (US$226.6 million at the September 30, 2019 exchange rate) senior secured construction loan facility (the “KAPS Facility”). The term loan facility and the revolving credit facility mature on February 25, 2024. The KAPS Facility matures on June 13, 2024. SemCAMS Midstream may incur additional term loans and revolving commitments in an aggregate amount not to exceed C$250 million (US$188.8 million at the September 30, 2019 exchange rate), 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 September 30, 2019 (dollars in thousands):



SemGroup $1.0 billion revolving credit facility	1.75%	$	27,335
SemGroup secured bi-lateral⁽¹⁾	1.75%	$	24,394
SemCAMS Midstream revolving credit facility	2.50%	$	22,655
SemCAMS Midstream secured bi-lateral ⁽¹⁾	1.75%	$	3,693

(1) Secured bi-lateral letters of credit are external to the SemGroup $1.0 billion revolving credit facility and the SemCAMS Midstream C$525 million (US$396.5 million at the September 30, 2019 exchange rate) revolving credit facility and do not reduce availability for borrowing on the credit facilities.

Capitalized interest

During the nine months ended September 30, 2019 and 2018, we capitalized interest of $5.8 million and $9.6 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 $2.6 billion at September 30, 2019, which is categorized as a Level 2 measurement.