Related Party Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Related Party Debt

Related Party Debt

Consolidated related party debt obligations comprise the following as of the dates indicated:

	March 31, 2022						December 31, 2021
	Outstanding Balance		Total Capacity		Available Capacity		Outstanding Balance		Total Capacity		Available Capacity
Current
Five Year Revolver due December 2022	$	250	$	1,000	$	750	$	400	$	1,000	$	600
Total current debt payable (1)	$	250	$	1,000	$	750	$	400	$	1,000	$	600
Noncurrent
2021 Ten Year Fixed Facility	$	600	$	600	$	—	$	600	$	600	$	—
Ten Year Fixed Facility	600		600		—		600		600		—
Seven Year Fixed Facility	600		600		—		600		600		—
Five Year Revolver due July 2023	494		760		266		494		760		266
Unamortized debt issuance costs	(2)		n/a		n/a		(2)		n/a		n/a
Total noncurrent debt payable	$	2,292	$	2,560	$	266	$	2,292	$	2,560	$	266
Total debt payable	$	2,542	$	3,560	$	1,016	$	2,692	$	3,560	$	866

(1) As of both March 31, 2022 and December 31, 2021, the unamortized debt issuance costs for the current debt payable is less than $1 million and is therefore not being reflected in this table.

Interest and fee expenses associated with our borrowings, net of capitalized interest, were $20 million and $21 million for the three months ended March 31, 2022 and March 31, 2021, respectively, of which we paid $20 million and $24 million, respectively.

Borrowings and Repayments

Borrowings under the Five Year Revolver due July 2023 and the Five Year Revolver due December 2022 bear interest at the three-month London Interbank Offered Rate (“LIBOR”) plus a margin or, in certain instances (including if LIBOR is discontinued) at an alternate interest rate as described in each respective revolver. LIBOR is being discontinued globally, and as such, a new benchmark will take its place. We are in discussion with our Parent to further clarify the reference rate(s) applicable to our revolving credit facilities once LIBOR is discontinued, and once determined, will assess the financial impact, if any.

Borrowings under these revolving credit facilities approximate fair value as the interest rates are variable and reflective of market rates, which results in Level 2 instruments. The fair value of our fixed rate credit facilities is estimated based on the published market prices for issuances of similar risk and tenor and is categorized as Level 2 within the fair value hierarchy. As of March 31, 2022, the carrying amount and estimated fair value of total debt (before amortization of issuance costs) was $2,544 million and $2,555 million, respectively. As of December 31, 2021, the carrying amount and estimated fair value of total debt (before amortization of issuance costs) was $2,694 million and $2,849 million, respectively.

On February 16, 2022, we used excess cash to repay $150 million of borrowings under the Five Year Revolver due December 2022.

The 2021 Ten Year Fixed Facility was fully drawn on March 23, 2021, and the borrowings were used to repay the borrowings under, and replace, the Five Year Fixed Facility. In consideration for STCW’s consent to the prepayment of the Five Year Fixed Facility, the Partnership incurred a fee of approximately $2 million, which was paid on March 23, 2021. The Five Year Fixed Facility automatically terminated in connection with the prepayment.

Borrowings and repayments under our credit facilities for the three months ended March 31, 2022 and March 31, 2021 are disclosed in our unaudited consolidated statements of cash flows. See Note 7 – (Deficit) Equity for additional information regarding the source of our repayments, if applicable to the period.

For additional information on our credit facilities, refer to Note 8 – Related Party Debt in the Notes to Consolidated Financial Statements in our 2021 Annual Report.