10. Debt

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

	2017		2016
	(In millions)
Debt - Hess Corporation:
Fixed-rate public notes:
8.1% due 2019	$	349	$	349
3.5% due 2024		297		297
4.3% due 2027		991		989
7.9% due 2029		500		499
7.3% due 2031		679		679
7.1% due 2033		596		596
6.0% due 2040		740		740
5.6% due 2041		1,234		1,232
5.8% due 2047		493		493
Total fixed-rate public notes		5,879		5,874
Financing obligations associated with floating production system		118		192
Fair value adjustments - interest rate hedging		—		7
Total Debt - Hess Corporation	$	5,997	$	6,073

Debt - Midstream
Fixed-rate notes: 5.6% due 2026 - HIP	$	785	$	—
Term loan A facility - HIP		195		580
Revolving credit facility - HIP		—		153
Revolving credit facility - HESM		—		—
Total Debt - Midstream	$	980	$	733

Total Long-Term Debt:
Total debt (a)	$	6,977	$	6,806
Less: Current maturities of long-term debt		580		112
Total Long-Term Debt	$	6,397	$	6,694

(a)	At December 31, 2017 the fair value of total debt amounted to $7,718 million (2016: $7,548 million).

At December 31, 2017, the maturity profile of total debt was as follows:

	Total		Hess Corporation		Midstream
	(In millions)

2018	$	580	$	578	$	2
2019		51		40		11
2020		15		—		15
2021		16		—		16
2022		151		—		151
Thereafter		6,164		5,379		785
Total debt (excluding interest)	$	6,977	$	5,997	$	980

Debt – Hess Corporation:

Fixed-rate public notes:

At December 31, 2017, Hess Corporation’s fixed-rate public notes had a gross principal amount of $5,938 million (2016: $5,938 million) and a weighted average interest rate of 6.0% (2016: 6.0%). 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 $3,352 million of secured debt at December 31, 2017. Capitalized interest was $86 million in 2017 (2016: $61 million; 2015: $45 million).

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.

In February 2018, we purchased $350 million principal amount of 8.125% notes due 2019. See Note 24, Subsequent Events.

Credit facility:

In December 2017, the Corporation amended its $4 billion senior syndicated revolving credit facility by extending the facility for one year to January 2021, with a $3.7 billion commitment during the extension period. Borrowings on the facility will generally bear interest at 1.30% 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 60% of the Corporation’s total capitalization, defined as total debt plus stockholders’ equity. At December 31, 2017, 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.

Other outstanding letters of credit at December 31 were as follows:

	2017		2016
	(In millions)
Committed lines (a)	$	29	$	1
Uncommitted lines (a)		217		187
Total (b)	$	246	$	188

(a)	At December 31, 2017, committed and uncommitted lines have expiration dates through 2018.

(b)	At December 31, 2017, total outstanding letters of credit includes $215 million related to liabilities recorded in the Consolidated Balance Sheet (2016: $161 million).

Debt - Midstream:

Our Midstream segment holds the following non-recourse debt:

Hess Infrastructure Partners (HIP):

In November 2017, HIP issued $800 million of 5.625% senior notes, due in February 2026 and concurrently amended its senior unsecured credit facilities. HIP used a portion of the proceeds from the note issuance to repay borrowings under HIP’s credit facilities and to fund a distribution to the partners. The remaining proceeds will be used for general corporate purposes of the joint venture. Under the amended credit facilities, the 5-year Term Loan A facility was reduced to $200 million and the 5-year syndicated revolving credit facility increased to $600 million from $400 million previously, with the maturity of both facilities extended to November 2022. The amended facilities are secured by first-priority perfected liens on substantially all of HIP’s and certain of its wholly-owned subsidiaries’ directly owned assets, including its equity interests in certain subsidiaries, subject to customary exclusions. The 5-year syndicated revolving credit facility is expected to continue to fund the joint venture’s operating activities and capital expenditures. Borrowings under the 5-year Term Loan A facility will generally bear interest at LIBOR plus an applicable margin ranging from 1.55% to 2.50%, while the applicable margin for the 5-year syndicated revolving credit facility ranges from 1.275% to 2.000%. The interest rate continues to be 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 HIP obtains an investment grade credit rating, as defined in the amended credit agreement, pricing levels will be based on the credit ratings in effect from time to time. The joint venture is subject to customary covenants in the credit agreement that include 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 cash interest expense, of no less than 2.25 to 1.0 for the prior four fiscal quarters. The amended credit agreement includes a secured leverage ratio test not to exceed 3.75 to 1.00 for so long as the facilities remain secured. HIP is in compliance with all debt covenants at December 31, 2017, and its financial covenants do not currently impact its ability to issue indebtedness to fund future capital expenditures.

Hess Midstream Partners (the Partnership / HESM):

In 2017, HESM entered into a $300 million 4-year secured syndicated revolving credit facility that can be used for borrowings and letters of credit to fund operating activities and capital expenditures of the Partnership. At December 31, 2017, this facility was undrawn.