Long-Term Debt

6 Months Ended

Jun. 30, 2020

LONG-TERM DEBT


	As at
	June 30,	December 31,
($ millions)		2020	2019
Long-term debt		23,656	21,547
Fair value adjustment - ITC acquisition		133	133
Credit facility borrowings		909	640
Total long-term debt		24,698	22,320
Less: Deferred financing costs and debt discounts		(147)	(129)
Less: Current installments of long-term debt		(990)	(690)
		23,561	21,501

The long-term debt issuances for the six months ended June 30, 2020 are summarized below.

Interest

Month

Rate

Use of

($ millions, except %)

Issued

(%)

Maturity

Amount

Proceeds

ITC

Unsecured term loan credit agreement

January

⁽¹⁾

2021

⁽²⁾⁽³⁾

Unsecured term loan credit agreement ⁽⁴⁾

January

⁽⁵⁾

2021

200

⁽⁴⁾

Unsecured senior notes

May

2.95

2030

700

^(2)(3)(6)

UNS Energy

Unsecured senior notes

April

4.00

2050

350

⁽²⁾⁽³⁾

Central Hudson

Unsecured senior notes

May

3.42

2050

⁽³⁾

FortisBC Electric

Unsecured debentures

May

3.12

2050

⁽²⁾

Newfoundland Power

First mortgage sinking fund bonds

April

3.61

2060

100

⁽²⁾⁽³⁾

FortisTCI

Unsecured senior notes ⁽⁷⁾

June

5.30

2035

⁽⁸⁾⁽⁹⁾

⁽¹⁾ Floating rate of a one-month LIBOR plus a spread of 0.45%

⁽²⁾Repay credit facility borrowings

⁽³⁾General corporate purposes

⁽⁴⁾ Maximum amount of borrowings under this agreement of US$400 million has been drawn; current period borrowings were used to repay an outstanding commercial paper balance.

⁽⁵⁾Floating rate of a two-month LIBOR plus a spread of 0.60%

⁽⁶⁾Early redemption of unsecured term loan credit agreement of US$400 million

⁽⁷⁾Maximum amount of borrowings under this agreement is US$30 million.

⁽⁸⁾Repay maturing long-term debt

⁽⁹⁾ Finance capital expenditures

In July 2020 ITC issued 31-year US$180 million first mortgage bonds at 3.13%. The net proceeds were used to repay credit facility borrowings, finance capital expenditures and for general corporate purposes.

In July 2020 Central Hudson issued 40-year US$30 million unsecured senior notes at 3.62%. The net proceeds were used to finance capital expenditures and for general corporate purposes.

In July 2020 FortisBC Energy issued 30-year $200 million unsecured debentures at 2.54%. The net proceeds were used to finance capital expenditures.

Credit Facilities


			As at
	Regulated	Corporate	June 30,	December 31,
($ millions)	Utilities	and Other	2020	2019
Total credit facilities	3,982	1,881	5,863	5,590
Credit facilities utilized:
Short-term borrowings ⁽¹⁾	(25)	—	(25)	(512)
Long-term debt (including current portion)⁽²⁾	(909)	—	(909)	(640)
Letters of credit outstanding	(83)	(53)	(136)	(114)
Credit facilities unutilized	2,965	1,828	4,793	4,324

⁽¹⁾The weighted average interest rate was approximately 1.9% (December 31, 2019 - 3.2%).

⁽²⁾The weighted average interest rate was approximately 1.1% (December 31, 2019 - 2.4%). The current portion was $371 million (December 31, 2019 - $252 million).

Credit facilities are syndicated primarily with large banks in Canada and the United States, with no one bank holding more than 25% of the total facilities. Approximately $5.6 billion of the total credit facilities are committed facilities with maturities ranging from 2021 through 2025.

See Note 15 in the 2019 Annual Financial Statements for a description of the credit facilities as at December 31, 2019.

In January 2020 Caribbean Utilities amended its unsecured revolving committed credit facility resulting in an increase of US$20 million and an extension of the maturity date to January 2025.

In March 2020 FortisBC Energy entered into a $55 million two-year uncommitted letter of credit facility and FortisAlberta entered into a $150 million one-year non-revolving committed credit facility.

In April 2020 the Corporation entered into an unsecured $500 million one-year revolving term committed credit facility and UNS Energy terminated its US$225 million unsecured non-revolving uncommitted credit facility due to mature in December 2020.

In May 2020 and July 2020 Central Hudson's US$10 million uncommitted credit facility and its US$50 million unsecured revolving committed credit facility, respectively, expired and were not renewed.