Debt and Credit Agreements

Debt at December 2018 and December 2017 is shown in the table below. For information regarding the fair value of debt, see Note 13, Fair Value Measurements.



	Maturity at December	Average Interest Rates at December	December			December
(Dollars in Millions)	2018	2018	2018			2017
Notes	2020-2068	4.5%	$	14,558		$	11,591
Equipment Obligations^(a)	2019-2023	6.3%	195			213
Capital Leases	2020-2026	16.2%	4			5
Subtotal Long-term Debt (including current portion)			$	14,757		$	11,809
Less Debt Due within One Year			(18		)	(19		)
Long-term Debt (excluding current portion)			$	14,739		$	11,790

(a) Equipment obligations are secured by an interest in certain railroad equipment.

Debt Issuance

On November 15, 2018, CSX issued $350 million of 4.25% notes due 2029 and $650 million of 4.75% notes due 2048. These notes are included in the consolidated balance sheets under long-term debt and may be redeemed by the Company at any time, subject to payment of certain make-whole premiums. The net proceeds will be used for general corporate purposes, which may include repurchases of CSX's common stock, capital investment, working capital requirements, improvements in productivity and other cost reductions at the Company’s major transportation units.

On February 20, 2018, CSX issued $800 million of 3.80% notes due 2028, $850 million of 4.30% notes due 2048, and $350 million of 4.65% notes due 2068. These notes are included in the consolidated balance sheets under long-term debt and may be redeemed by the Company at any time, subject to payment of certain make-whole premiums. The net proceeds will be used for general corporate purposes, which may include repurchases of CSX's common stock, capital investment, working capital requirements, improvements in productivity and other cost reductions at the Company’s major transportation units.

In May 2017, CSX issued $850 million of 3.25% notes due 2027. These notes are included in the consolidated balance sheets under long-term debt and may be redeemed by the Company at any time. The net proceeds have been or will be used for general corporate purposes, which may include repurchases of CSX's common stock, capital investment, working capital requirements, improvement in productivity and other cost reductions at CSX’s major transportation units.

NOTE 9. Debt and Credit Agreements, continued

Long-term Debt Maturities (Net of Discounts, Premiums and Issuance Costs)



(Dollars in Millions)	Maturities at
Fiscal Years Ending	December 2018
2019	$	18
2020	745
2021	371
2022	192
2023	639
Thereafter	12,792
Total Long-term Debt Maturities, including current portion	$	14,757

Credit Facilities

CSX has a $1 billion unsecured, revolving credit facility backed by a diverse syndicate of banks. The facility allows same-day borrowings at floating (LIBOR-based) interest rates, plus a spread, depending upon CSX's senior unsecured debt ratings. LIBOR is the London Interbank Offered Rate which is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds. This facility expires in May 2020, and as of December 31, 2018, the Company had no outstanding balances under the facility.

Commitment fees and interest rates payable under the facility were similar to fees and rates available to comparably rated investment-grade borrowers. As of December 31, 2018, CSX was in compliance with all covenant requirements under the facility.

Commercial Paper

On September 14, 2018, the Company established a commercial paper program, backed by the revolving credit facility, under which the Company may issue unsecured commercial paper notes up to a maximum aggregate principal amount of $1 billion. Proceeds from issuances of the notes are expected to be used for general corporate purposes. At December 31, 2018, the Company had no commercial paper outstanding.

Receivables Securitization Facility

On December 4, 2018, the Company terminated its receivables securitization facility which previously served as a source of short-term liquidity of up to $200 million. The Company had no outstanding balance under the facility prior to termination.