Long-Term Debt

6 Months Ended

Jun. 30, 2022

(5) Long-Term Debt

As of June 30, 2022 and December 31, 2021, long-term debt consisted of the following (in millions):


	June 30, 2022						December 31, 2021
	Outstanding Principal		Premium (Discount)		Long-Term Debt		Outstanding Principal		Premium (Discount)		Long-Term Debt

Revolving Credit Facility due 2027 (1)	$	—	$	—	$	—	$	15.0	$	—	$	15.0
AR Facility due 2025 (2)	325.0		—		325.0		350.0		—		350.0
ENLK’s 4.40% Senior unsecured notes due 2024	519.8		0.5		520.3		521.8		0.7		522.5
ENLK’s 4.15% Senior unsecured notes due 2025	720.8		(0.3)		720.5		720.8		(0.4)		720.4
ENLK’s 4.85% Senior unsecured notes due 2026	491.0		(0.3)		490.7		491.0		(0.3)		490.7
ENLC’s 5.625% Senior unsecured notes due 2028	500.0		—		500.0		500.0		—		500.0
ENLC’s 5.375% Senior unsecured notes due 2029	498.7		—		498.7		498.7		—		498.7
ENLK’s 5.60% Senior unsecured notes due 2044	350.0		(0.2)		349.8		350.0		(0.2)		349.8
ENLK’s 5.05% Senior unsecured notes due 2045	450.0		(5.3)		444.7		450.0		(5.5)		444.5
ENLK’s 5.45% Senior unsecured notes due 2047	500.0		(0.1)		499.9		500.0		(0.1)		499.9
Debt classified as long-term	$	4,355.3	$	(5.7)	4,349.6		$	4,397.3	$	(5.8)	4,391.5
Debt issuance cost (3)					(29.6)						(27.8)

Long-term debt, net of unamortized issuance cost					$	4,320.0					$	4,363.7

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(1)The effective interest rate was 3.9% at December 31, 2021.

(2)The effective interest rate was 2.8% and 1.2% at June 30, 2022 and December 31, 2021, respectively.

(3)Net of accumulated amortization of $16.9 million and $18.4 million at June 30, 2022 and December 31, 2021, respectively.

Revolving Credit Facility

On June 3, 2022, we amended and restated our prior revolving credit facility by entering into the Revolving Credit Facility. As a result, we recognized a $0.5 million loss on extinguishment of debt. The Revolving Credit Facility amended our prior revolving credit facility by, among other things, (i) decreasing the lenders’ commitments under the Revolving Credit Facility from $1.75 billion to $1.40 billion, (ii) modifying the leverage ratio financial covenant calculation to net from the funded indebtedness numerator the lesser of (a) consolidated unrestricted cash of ENLC and (b) $50.0 million, (iii) removing the consolidated interest coverage ratio financial covenant, (iv) extending the maturity date from January 25, 2024 to June 3, 2027, (v) replacing the ability of ENLC to elect that borrowings accrue interest at LIBOR, plus a margin, with the ability of ENLC to elect that borrowings accrue interest at a forward-looking term rate based on SOFR (“Term SOFR”), plus a margin and a Term SOFR spread adjustment, (vi) increasing the size of a permitted receivables financing to $500.0 million from $350.0 million, and (vii) permitting, but not requiring, the establishment by ENLC (subject to approval by Bank of America, N.A., as administrative agent, and lenders holding a majority of the revolving commitments) of specified key performance indicators with respect to environmental, social, and/or governance targets that may result in a pricing increase or decrease under the Revolving Credit Facility of up to 0.05% per annum for the margin on borrowings and letters of credit and 0.02% per annum for the commitment fees.

Borrowings under the Revolving Credit Facility bear interest at ENLC’s options at the Term SOFR plus a Term SOFR spread adjustment of 0.10% per annum and an applicable margin (ranging from 1.125% to 2.00%) or the Base Rate (the highest of the federal funds rate plus 0.50%, the Term SOFR plus 1.0% or the administrative agent's prime rate) plus an applicable margin (ranging from 0.125% to 1.00%). The applicable margins vary depending on ENLC’s debt rating. Upon breach by ENLC of certain covenants governing the Revolving Credit Facility, amounts outstanding under the Revolving Credit Facility, if any, may become due and payable immediately.

There were no outstanding borrowings under the Revolving Credit Facility and $44.6 million outstanding letters of credit as of June 30, 2022.

At June 30, 2022, we were in compliance with and expect to be in compliance with the financial covenants of the Revolving Credit Facility for at least the next twelve months.

AR Facility

On October 21, 2020, EnLink Midstream Funding, LLC, a bankruptcy-remote special purpose entity that is an indirect subsidiary of ENLC (the “SPV”) entered into the AR Facility. We are the primary beneficiary of the SPV and we consolidate its assets and liabilities, which consisted primarily of billed and unbilled accounts receivable of $946.7 million as of June 30, 2022. As of June 30, 2022, the AR Facility had a borrowing base of $350.0 million and there were $325.0 million in outstanding borrowings under the AR Facility.

At June 30, 2022, we were in compliance with and expect to be in compliance with the financial covenants of the AR Facility for at least the next twelve months.

On August 1, 2022, we amended certain terms of the AR Facility to, among other things, increase the commitments thereunder from $350.0 million to $500.0 million and extend the scheduled termination date from September 24, 2024 to August 1, 2025. See “Item 5. Other Information” for additional information.

Senior Unsecured Notes Repurchase

For the three and six months ended June 30, 2022, we repurchased $2.0 million of ENLK’s outstanding senior unsecured notes due 2024 in open market transactions. We did not repurchase senior unsecured notes during the three and six months ended June 30, 2021.