
4.	DEBT AND NOTES PAYABLE – RELATED PARTY

Debt

Debt, at stated values consisted of the following (in thousands):



	Maturity Date	June 30, 2018			December 31, 2017
	Maturity Date	June 30, 2018			December 31, 2017
Revolver	November 2020	$	—		$	410,000
Senior Notes, 4.375%	December 2026	500,000			500,000
Senior Notes, 4.5%	March 2028	500,000			—
Net unamortized discount and debt issuance costs		(10,620		)	(4,717		)
Debt		$	989,380		$	905,283

Revolver

We have a $750.0 million senior unsecured revolving credit facility agreement (the Revolver) that matures in November 2020. We have the option to increase the aggregate commitments under the Revolver to $1.0 billion, subject to certain restrictions. The Revolver also provides for the issuance of letters of credit of up to $100.0 million. Borrowings under the Revolver bear interest at a variable rate.

On March 29, 2018, we repaid the outstanding balance of $410.0 million on the Revolver as discussed below. There was no activity related to the Revolver during the six months ended June 30, 2017.

Senior Notes

On March 29, 2018, we issued in a public offering $500.0 million aggregate principal amount of 4.5 percent Senior Notes due March 15, 2028 (4.5 percent Senior Notes). Gross proceeds from this debt issuance totaled $498.3 million before deducting the underwriting discount and other debt issuance costs totaling $4.5 million. We used the proceeds to repay the outstanding balance of $410.0 million under the Revolver and a portion of the outstanding balance under one of our Loan Agreements (defined below) with Valero.

The 4.5 percent Senior Notes are unsecured and contain various customary restrictive covenants that, among other things, limit our ability to create or permit to exist liens, or to enter into any sale and leaseback transactions, with respect to principal properties, and limit our ability to merge or consolidate with any other entity or transfer or dispose of all or substantially all of our assets. These covenants will be subject to a number of important qualifications and limitations. The 4.5 percent Senior Notes are not currently guaranteed by any of our subsidiaries. If in the future any of our subsidiaries becomes a borrower or guarantor under, or grants any lien to secure any obligations pursuant to, the Revolver, then we will cause such subsidiary to guarantee the 4.5 percent Senior Notes. Interest is payable semi-annually on March 15 and September 15, commencing on September 15, 2018.

Notes Payable – Related Party

We have two subordinated credit agreements with Valero (the Loan Agreements). Borrowings on the Loan Agreements bear interest at a variable rate, which was 3.48246 percent and 2.86069 percent as of June 30, 2018 and December 31, 2017, respectively.

On March 29, 2018, we paid down $85.0 million under one of the Loan Agreements. There was no activity under the Loan Agreements for the six months ended June 30, 2017. The outstanding balance of these Loan Agreements was $285.0 million and $370.0 million as of June 30, 2018 and December 31, 2017, respectively.

Other Disclosures

Interest and debt expense, net of capitalized interest was as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Interest and debt expense incurred	$	14,349	$	8,653	$	26,367	$	17,045
Less: Capitalized interest	78		102		188		205
Interest and debt expense, net of capitalized interest	$	14,271	$	8,551	$	26,179	$	16,840