Debt and Credit Facilities

12 Months Ended

Dec. 31, 2024

Debt and Credit Facilities

Debt and Credit Facilities

21. Debt and Credit Facilities

Debt and credit facilities are comprised of the following:

Short-Term Debt

	December 31	December 31
($ millions)	2024	2023
Commercial paper(1)	-	494

(1) Commercial paper is supported by a revolving credit facility with a syndicate of lenders. The company is authorized to issue commercial paper to a maximum of $5.0 billion having a term not to exceed 365 days. The weighted average interest rate as at December 31, 2024 was nil (December 31, 2023 – 5.57%).

Long-Term Debt

	December 31	December 31
($ millions)	2024	2023
Fixed-term debt(2)(3)
5.60% Series 9 Medium Term Notes, due 2025	999	1 000
5.40% Series 10 Medium Term Notes, due 2026	499	500
3.00% Series 5 Medium Term Notes, due 2026	96	115
7.875% Debentures, due 2026 (US$275)	401	369
8.20% Notes, due 2027 (US$43)	62	57
7.00% Debentures, due 2028 (US$250)	362	333
3.10% Series 6 Medium Term Notes, due 2029	65	79
5.00% Series 7 Medium Term Notes, due 2030	154	154
7.15% Notes, due 2032 (US$500)	720	659
5.35% Notes, due 2033 (US$91)	123	153
5.95% Notes, due 2034 (US$500)	719	659
5.95% Notes, due 2035 (US$178)	247	262
5.39% Series 4 Medium Term Notes, due 2037	279	279
6.50% Notes, due 2038 (US$476)	683	1 516
6.80% Notes, due 2038 (US$621)	905	1 204
6.85% Notes, due 2039 (US$750)	1 077	988
6.00% Notes, due 2042 (US$32)	46	42
4.34% Series 5 Medium Term Notes, due 2046	300	300
4.00% Notes, due 2047 (US$750)	1 076	987
3.95% Series 8 Medium Term Notes, due 2051	494	493
3.75% Notes, due 2051 (US$750)	1 076	980
Total unsecured long-term debt	10 383	11 129
Lease liabilities(4)	4 344	3 826
Deferred financing costs	(38)	(42)
	14 689	14 913
Current portion of long-term debt and lease liabilities
Long-term debt	(997)	-
Lease liabilities	(599)	(348)
	(1 596)	(348)
Total long-term lease liabilities	3 745	3 478
Total long-term debt	9 348	11 087

(2) The value of debt includes the unamortized balance of premiums or discounts.

(3) Certain securities are redeemable at the option of the company.

(4) Interest rates range from 1.2% to 13.4% and maturity dates range from 2025 to 2064.

In the fourth quarter of 2024, the company extended the maturity of its syndicated credit facilities from June 2026 to October 2027 and October 2028.

In the fourth quarter of 2024, the company executed a debt tender offer pursuant to which it repaid $1.1 billion CAD equivalent aggregate principal amount of debt above par plus accrued and unpaid interest of $24 million. As a result of the extinguishment, the company incurred charges of $168 million related to accelerated amortization of debt issuance fees. This resulted in a total loss on extinguishment of long-term debt of $144 million ($111 million after tax). The general terms of the notes that were extinguished are as follows:

● 3.00% Series 5 Medium Term Notes, due 2026, with a principal amount of $115 million (partial repayment of $20 million);

● 3.10% Series 6 Medium Term Notes, due 2029, with a principal amount of $79 million (partial repayment of $13 million);

● 5.35% Notes, due 2033, with a principal amount of US$118 million (partial repayment of US$28 million);

● 5.95% Notes, due 2035, with a principal amount of US$199 million (partial repayment of US$22 million);

● 6.50% Notes, due 2038, with a principal amount of US$954 million (partial repayment of US$479 million); and

● 6.80% Notes, due 2038, with a principal amount of US$881 million (partial repayment of US$260 million).

In the third quarter of 2024, the company completed two partial redemptions, resulting in a debt extinguishment loss of $26 million ($23 million after tax). The general terms of the notes that were extinguished are as follows:

● 6.50% Notes, due 2038, with a principal amount of US$1.15 billion (partial repayment of US$196 million); and

● 6.80% Notes, due 2038, with a principal amount of US$900.0 million (partial repayment of US$19 million).

In the fourth quarter of 2023, the company issued $1.5 billion in aggregate principal of senior unsecured notes, consisting of $1.0 billion of Series 9 Medium Term Notes, maturing on November 17, 2025, having a coupon of 5.60% and $500 million of Series 10 Medium Term Notes, maturing on November 17, 2026, having a coupon of 5.40%. Debt issuance costs were $8 million and were netted against the carrying amount of the debt and amortized using the effective interest method.

In the second quarter of 2023, the company extended the maturity of its syndicated credit facilities from June 2024 and June 2025 to June 2026, and reduced the size of its $3.0 billion tranche by $200 million, to $2.8 billion.

Scheduled Debt Repayments

Scheduled principal repayments for lease liabilities, short-term debt and long-term debt are as follows:

($ millions)	Repayment
2025	1 596
2026	1 535
2027	498
2028	708
2029	319
Thereafter	10 033
	14 689

Credit Facilities

A summary of available and unutilized credit facilities is as follows:

($ millions)	2024
Fully revolving and expiring in 2028	2 810
Fully revolving and expiring in 2027	2 665
Can be terminated at any time at the option of the lenders	1 120
Total credit facilities	6 595
Credit facilities supporting standby letters of credit	(811)
Total unutilized credit facilities(1)	5 784

(1) Available credit facilities for liquidity purposes at December 31, 2024 increased to $5.475 billion, compared to $4.957 billion at December 31, 2023.