12. Debt

Long‑term debt at December 31 consisted of the following:

	2016		2015
	(In millions)
Debt Excluding Bakken Midstream:
Fixed-rate public notes:
1.3% due 2017	$	—	$	299
8.1% due 2019		349		996
3.5% due 2024		297		296
4.3% due 2027		989		—
7.9% due 2029		499		693
7.3% due 2031		679		744
7.1% due 2033		596		595
6.0% due 2040		740		739
5.6% due 2041		1,232		1,231
5.8% due 2047		493		—
Total fixed-rate public notes		5,874		5,593
Financing obligations associated with floating production system		192		264
Fair value adjustments - interest rate hedging		7		31
Total Debt Excluding Bakken Midstream	$	6,073	$	5,888

Debt Related to Bakken Midstream
Bakken Midstream - term loan A facility	$	580	$	594
Bakken Midstream - revolving credit facility		153		110
Total Debt Related to Bakken Midstream	$	733	$	704

Total Long-Term Debt:
Total debt (a) (b)	$	6,806	$	6,592
Less: Current maturities of long-term debt		112		86
Total Long-Term Debt	$	6,694	$	6,506

(a)	At December 31, 2016 the fair value of total debt amounted to $7,548 million (2015: $6,515 million).

(b)	The aggregate total debt maturing during the next five years is as follows (in millions): 2017: $112; 2018: $123; 2019: $448; 2020: $598 and 2021: $-.

Debt refinancing transaction: In September 2016, Hess Corporation issued $1 billion of 4.30% senior notes, due in April 2027, and $500 million of 5.80% senior notes, due in April 2047 primarily to fund the repurchase of tendered higher-coupon debt and redemption of near-term maturities. We used proceeds of $1.38 billion to purchase or redeem $650 million principal amount of 8.125% notes due 2019, $196 million principal amount of 7.875% notes due 2029, $66 million principal amount of 7.30% notes due 2031 and $300 million principal amount of 1.30% notes due 2017. As a result of this debt refinancing transaction, we incurred a charge of $148 million for the loss on extinguishment of the tendered and redeemed notes.

Debt excluding Bakken Midstream: At December 31, 2016, Hess Corporation’s fixed-rate public notes had a gross principal amount of $5,938 million (2015: $5,650 million) and a weighted average interest rate of 6.0% (2015: 6.4%). Our long‑term debt agreements, including the revolving credit facility, contain financial covenants that restrict the amount of total borrowings and secured debt. The most restrictive of these covenants allow us to borrow up to an additional $4,585 million of secured debt at December 31, 2016. In 2016, we capitalized $61 million of interest (2015: $45 million; 2014: $76 million).

Hess Corporation has a $4 billion syndicated revolving credit facility that expires in January 2020. Borrowings on the facility will generally bear interest at 1.3% above the London Interbank Offered Rate (LIBOR). The interest rate will be higher if our credit rating is lowered. The facility contains a financial covenant that limits the amount of total borrowings on the last day of each fiscal quarter to 65% of the Corporation’s total capitalization, defined as total debt plus stockholders’ equity. At December 31, 2016, Hess Corporation had no outstanding borrowings or letters of credit issued against the syndicated revolving credit facility and was in compliance with this financial covenant.

Letters of credit: Outstanding letters of credit at December 31 were as follows:

	2016		2015
	(In millions)
Committed lines (a)	$	1	$	10
Uncommitted lines (a)		187		103
Total (b)	$	188	$	113

(a)	At December 31, 2016, committed and uncommitted lines have expiration dates through 2018.

(b)	At December 31, 2016, $27 million relates to contingent liabilities and $161 million relates to liabilities recorded in the Consolidated Balance Sheet (2015: $32 million and $81 million, respectively).

Debt related to Bakken Midstream: In July 2015, HIP, a 50/50 joint venture between us and GIP, incurred $600 million of debt through a 5-year Term Loan A facility. The proceeds from the debt were distributed equally to the partners. HIP also entered into a $400 million 5-year syndicated revolving credit facility, which can be used for borrowings and letters of credit, and is expected to fund the joint venture’s operating activities and capital expenditures. Borrowings on both loan facilities are non-recourse to Hess Corporation and generally bear interest at LIBOR plus an applicable margin ranging from 1.10% to 2.00%. The interest rate is subject to adjustment based on the joint venture’s leverage ratio, which is calculated as total debt to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA). If the joint venture obtains credit ratings, pricing levels will be based on its credit ratings in effect from time to time. The joint venture is subject to customary covenants in the credit agreement, including financial covenants that generally require a leverage ratio of no more than 5.0 to 1.0 for the prior four fiscal quarters and an interest coverage ratio, which is calculated as EBITDA to interest expense, of no less than 2.25 to 1.0 for the prior four fiscal quarters. HIP is in compliance with all debt covenants at December 31, 2016, and its financial covenants do not currently impact their ability to issue indebtedness to fund future capital expenditures.