Note 6—Debt

Debt consisted of the following as of the dates indicated (in millions):


	September 30,		December 31,
	2015		2014
SHORT-TERM DEBT
PAA commercial paper notes, bearing a weighted-average interest rate of 0.43% and 0.46%, respectively (1)	$	678	$	734
PAA senior notes:
5.25% senior notes due June 2015		—		150
3.95% senior notes due September 2015		—		400
Other		3		3
Total short-term debt		681		1,287

LONG-TERM DEBT
PAA senior notes, net of unamortized discount of $18 and $18, respectively (2)		9,757		8,757
PAA commercial paper notes, bearing a weighted-average interest rate of 0.43% (2)		208		—
AAP term loan, bearing a weighted-average interest rate of 1.8% and 1.8%, respectively		550		500
AAP senior secured revolving credit facility, bearing a weighted-average interest rate of 1.8% and 1.8%, respectively		9		36
Other		5		5
Total long-term debt		10,529		9,298
Total debt (3)	$	11,210	$	10,585

⁽¹⁾

We classified these PAA commercial paper notes as short-term at September 30, 2015 and December 31, 2014 as these notes were primarily designated as working capital borrowings, were required to be repaid within one year and were primarily for hedged NGL and crude oil inventory and NYMEX and ICE margin deposits.

⁽²⁾

As of September 30, 2015, we have classified PAA’s $175 million, 5.88% senior notes due August 2016 and a portion of PAA’s commercial paper notes as long-term based on PAA’s ability and intent to refinance such amounts on a long-term basis.

⁽³⁾

PAA’s fixed-rate senior notes (including current maturities) had a face value of approximately $9.8 billion and $9.3 billion as of September 30, 2015 and December 31, 2014, respectively. We estimated the aggregate fair value of these notes as of September 30, 2015 and December 31, 2014 to be approximately $9.7 billion and $9.9 billion, respectively. PAA’s fixed-rate senior notes are traded among institutions, and these trades are routinely published by a reporting service. Our determination of fair value is based on reported trading activity near the end of the reporting period. We estimate that the carrying value of outstanding borrowings under credit facilities and the PAA commercial paper program approximates fair value as interest rates reflect current market rates. The fair value estimates for the PAA senior notes, credit facilities and the PAA commercial paper program are based upon observable market data and are classified in Level 2 of the fair value hierarchy.

Credit Facilities

In January 2015, PAA entered into an agreement for a 364-day senior unsecured revolving credit facility with a borrowing capacity of $1.0 billion. Borrowings accrue interest based, at PAA’s election, on either the Eurocurrency Rate or the Base Rate, as defined in the agreement, in each case plus a margin based on PAA’s credit rating at the applicable time. In August 2015, PAA amended this agreement to extend the maturity date to August 2016.

In August 2015, PAA also extended the maturity dates of its senior secured hedged inventory facility and its senior unsecured revolving credit facility to August 2018 and August 2020, respectively.

In August 2015, AAP amended its credit agreement to, among other things, (i) increase its term loan commitments from $500 million to $550 million, (ii) increase the aggregate commitments under its senior secured revolving credit facility from $75 million to $125 million and (iii) extend the maturity date of the term loan and senior secured revolving credit facility to August 2020. In addition, the amendment provides for a $50 million accordion feature, which may be used to expand the term loan and/or revolving credit facility commitments.

Borrowings and Repayments

Total borrowings under credit agreements and the PAA commercial paper program for the nine months ended September 30, 2015 and 2014 were approximately $37.1 billion and $55.7 billion, respectively. Total repayments under credit agreements and the PAA commercial paper program were approximately $36.9 billion and $56.3 billion for the nine months ended September 30, 2015 and 2014, respectively. The variance in total gross borrowings and repayments is impacted by various business and financial factors including, but not limited to, the timing, average term and method of general partnership borrowing activities.

Letters of Credit

In connection with our supply and logistics activities, we provide certain suppliers with irrevocable standby letters of credit to secure our obligation for the purchase of crude oil, NGL and natural gas. Additionally, we issue letters of credit to support insurance programs, derivative transactions and construction activities. At September 30, 2015 and December 31, 2014, we had outstanding letters of credit of $44 million and $87 million, respectively.

Senior Notes Issuances

In August 2015, PAA completed the issuance of $1.0 billion, 4.65% senior notes due 2025 at a public offering price of 99.846%. Interest payments are due on April 15 and October 15 of each year, commencing on April 15, 2016.

Senior Notes Repayments

The PAA $150 million, 5.25% senior notes and $400 million, 3.95% senior notes were repaid in June 2015 and September 2015, respectively. We utilized cash on hand and available capacity under the PAA commercial paper program to repay these notes.