Debt

3 Months Ended

Mar. 31, 2020

The following table presents the Partnership’s outstanding debt.



	March 31, 2020							December 31, 2019
	Outstanding Principal		Discount ⁽¹⁾			Total Debt		Outstanding Principal		Premium (Discount) ⁽¹⁾			Total Debt

	(In millions)
Commercial Paper	$	110	$	—		$	110	$	155	$	—		$	155
Revolving Credit Facility	300		—			300		—		—			—
2019 Term Loan Agreement	800		—			800		800		—			800
2024 Notes	600		—			600		600		—			600
2027 Notes	700		(2		)	698		700		(2		)	698
2028 Notes	800		(5		)	795		800		(5		)	795
2029 Notes	550		(1		)	549		550		(1		)	549
2044 Notes	550		—			550		550		—			550
EOIT Senior Notes	—		—			—		250		1			251
Total debt	$	4,410	$	(8	)	$	4,402	$	4,405	$	(7	)	$	4,398
Less: Short-term debt ⁽²⁾						110							155
Less: Current portion of long-term debt ⁽³⁾						—							251
Less: Unamortized debt expense⁽⁴⁾						22							23
Total long-term debt						$	4,270						$	3,969

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(1)	Unamortized premium (discount) on long-term debt is amortized over the life of the respective debt.


(2)	Short-term debt includes $110 million and $155 million of outstanding commercial paper as of March 31, 2020 and December 31, 2019, respectively.


(3)	As of December 31, 2019, Current portion of long-term debt included $251 million outstanding balance of the EOIT Senior Notes which were repaid in March 2020.


(4)	As of March 31, 2020 and December 31, 2019, there was an additional $4 million of unamortized debt expense related to the Revolving Credit Facility included in Other assets, not included above.

Commercial Paper

The Partnership has a commercial paper program, pursuant to which the Partnership is authorized to issue up to $1.4 billion of commercial paper. The commercial paper program is supported by our Revolving Credit Facility, and outstanding commercial paper effectively reduces our borrowing capacity thereunder. There were $110 million and $155 million outstanding under our commercial paper program at March 31, 2020 and December 31, 2019, respectively. The weighted average interest rate for the outstanding commercial paper was 2.29% as of March 31, 2020.

Revolving Credit Facility

On April 6, 2018, the Partnership amended and restated its Revolving Credit Facility. As amended and restated, the Revolving Credit Facility is a $1.75 billion, five-year senior unsecured revolving credit facility, which under certain circumstances may be increased from time to time up to an additional $875 million. The Revolving Credit Facility is scheduled to mature on April 6, 2023, subject to an extension option, which could be exercised two times to extend the term of the Revolving Credit Facility, in each case, for an additional one-year term. As of March 31, 2020, there were $300 million principal advances and $3 million in letters of credit outstanding under the Revolving Credit Facility.

The Revolving Credit Facility provides that outstanding borrowings bear interest at the LIBOR and/or an alternate base rate, at the Partnership’s election, plus an applicable margin. The applicable margin is based on the Partnership’s designated credit ratings from S&P, Moody’s and Fitch Ratings. As of March 31, 2020, the applicable margin for LIBOR-based borrowings under the Revolving Credit Facility was 1.50% based on the Partnership’s credit ratings. In addition, the Revolving Credit Facility requires the Partnership to pay a fee on unused commitments. The commitment fee is based on the Partnership’s credit ratings. As of March 31, 2020, the commitment fee under the restated Revolving Credit Facility was 0.20% per annum based on the Partnership’s credit ratings. The commitment fee is recorded as interest expense in the Partnership’s Condensed Consolidated Statements of Income.

2019 Term Loan Agreement

On January 29, 2019, the Partnership entered into an unsecured term loan agreement with Bank of America, N.A., as administrative agent, and the several lenders thereto. As of March 31, 2020, there was $800 million outstanding under the 2019 Term Loan Agreement. The 2019 Term Loan Agreement has a scheduled maturity date of January 29, 2022, but contains an option, which may be exercised up to two times, to extend the maturity date for an additional one-year term. The 2019 Term Loan Agreement provides that outstanding borrowings bear interest at the eurodollar rate and/or an alternate base rate, at the Partnership’s election, plus an applicable margin. The applicable margin is based on the Partnership’s credit ratings. The applicable margin shall equal, (1) in the case of interest rates determined by reference to the eurodollar rate, between 0.75% and 1.50% per annum and (2) in the case of interest rates determined by reference to the alternate base rate, between 0% and 0.50% per annum. As of March 31, 2020, the applicable margin for LIBOR-based advances under the 2019 Term Loan Facility was 1.25% based on the Partnership’s credit ratings. As of March 31, 2020, the weighted average interest rate of the 2019 Term Loan Agreement was 3.00%.

Senior Notes

As of March 31, 2020, the Partnership’s debt included the 2024 Notes, 2027 Notes, 2028 Notes, 2029 Notes and 2044 Notes, which had $8 million of unamortized discount and $22 million of unamortized debt expense at March 31, 2020, resulting in effective interest rates of 4.01%, 4.57%, 5.20%, 4.31% and 5.08%, respectively, during the three months ended March 31, 2020. In March 2020, the Partnership’s EOIT Senior Notes matured and were paid using proceeds from the Revolving Credit Facility.

As of March 31, 2020, the Partnership was in compliance with all of its debt agreements, including financial covenants.