Debt

12 Months Ended

Dec. 31, 2020

7. Debt

Total debt at December 31 consisted of the following:


	2020		2019

	(In millions)
Debt - Hess Corporation:
Fixed-rate public notes:
3.5% due 2024	$	299	$	298
4.3% due 2027	994		992
7.9% due 2029	464		463
7.3% due 2031	628		628
7.1% due 2033	537		537
6.0% due 2040	741		741
5.6% due 2041	1,236		1,235
5.8% due 2047	494		494
Total fixed-rate public notes	5,393		5,388
Term loan due March 2023	988		—
Fair value adjustments - interest rate hedging	5		1
Total Debt - Hess Corporation	$	6,386	$	5,389

Debt - Midstream:
Fixed-rate notes: 5.625% due 2026 - Hess Midstream Operations LP	$	789	$	787
Fixed-rate notes: 5.125% due 2028 - Hess Midstream Operations LP	542		540
Term loan A facility - Hess Midstream Operations LP	395		394
Revolving credit facility - Hess Midstream Operations LP	184		32
Total Debt - Midstream	$	1,910	$	1,753

Total Debt:
Current maturities of long-term debt	$	10	$	—
Long-term debt	8,286		7,142
Total Debt	$	8,296	$	7,142

At December 31, 2020, the maturity profile of total debt was as follows:


	Total		Hess Corporation		Midstream

	(In millions)
2021	$	10	$	—	$	10
2022	20		—		20
2023	1,030		1,000		30
2024	824		300		524
2025	—		—		—
Thereafter	6,488		5,138		1,350
Total Borrowings	8,372		6,438		1,934
Less: Deferred financing costs and discounts	(76)		(52)		(24)
Total Debt (excluding interest)	$	8,296	$	6,386	$	1,910

No interest was capitalized in 2020 (2019: $38 million; 2018: $20 million).

Debt – Hess Corporation:

Senior unsecured fixed-rate public notes:

At December 31, 2020, Hess Corporation’s fixed-rate public notes had a gross principal amount of $5,438 million (2019: $5,438 million) and a weighted average interest rate of 5.9% (2019: 5.9%). The indentures for our fixed-rate public notes limit the ratio of secured debt to Consolidated Net Tangible Assets (as that term is defined in the indentures) to 15%. As of December 31, 2020, Hess Corporation was in compliance with this financial covenant.

Term loan and credit facility:

In 2020, we entered into a $1 billion three year term loan agreement with a maturity date of March 16, 2023. Borrowings under the term loan generally bear interest at LIBOR plus an applicable margin of 2.25% until the term loan's first anniversary. The

applicable margin varies based on the credit rating of the Corporation’s senior unsecured long-term debt and will increase by 0.25% on each anniversary of the term loan.

In 2019, we entered into a new $3.5 billion revolving credit facility with a maturity date of May 15, 2023, which replaced the Corporation’s previous revolving credit facility. The new facility can be used for borrowings and letters of credit. Borrowings will generally bear interest at 1.30% above LIBOR, though the interest rate is subject to adjustment if the Corporation’s credit rating changes. At December 31, 2020, Hess Corporation had no outstanding borrowings or letters of credit under this facility.

Both the term loan and revolving credit facility are subject to customary representations, warranties, customary events of default and covenants, including a financial covenant limiting the ratio of Total Consolidated Debt to Total Capitalization of the Corporation and its consolidated subsidiaries to 65%, and a financial covenant limiting the ratio of secured debt to Consolidated Net Tangible Assets of the Corporation and its consolidated subsidiaries to 15% (as these capitalized terms are defined in the credit agreement for the revolving credit facility and the term loan agreement). As of December 31, 2020, Hess Corporation was in compliance with these financial covenants.

The most restrictive of the financial covenants related to our fixed-rate public notes and our term loan and revolving credit facility would allow us to borrow up to an additional $1,730 million of secured debt at December 31, 2020.

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


	2020		2019

	(In millions)
Committed lines (a)	$	54	$	54
Uncommitted lines (a)	215		218
Total	$	269	$	272

(a)At December 31, 2020, committed and uncommitted lines have expiration dates through 2021.

Debt - Midstream:

Senior unsecured fixed-rate public notes:

In November 2017, HIP issued $800 million of 5.625% senior unsecured notes due in 2026. In December 2019, in connection with the acquisition of HIP and corporate restructuring described in Note 4, Hess Midstream LP, HESM Opco assumed $800 million of outstanding HIP senior notes in a par-for-par exchange. The senior notes are guaranteed by certain subsidiaries of HESM Opco. In addition, in December 2019, HESM Opco issued $550 million of 5.125% senior unsecured notes due in 2028. The notes are guaranteed by HESM Opco’s direct and indirect wholly owned material domestic subsidiaries. Proceeds of the new notes were used to finance the acquisition of HIP and repay outstanding borrowings under HIP’s credit facilities.

Credit facilities:

Prior to the closing of the December 2019 transaction, HIP had a $600 million 5-year senior secured revolving credit facility and a $200 million senior secured Term Loan A facility, while Hess Midstream Partners LP had a $300 million 4-year senior secured syndicated revolving credit facility. In connection with the acquisition of HIP, both HIP and Hess Midstream Partners LP retired their existing senior secured revolving credit facilities and HESM Opco entered into a new 5-year senior secured syndicated revolving credit facility in the amount of $1.0 billion. HIP also retired its senior secured Term Loan A facility, which had borrowings of $190 million excluding deferred issuance costs, and HESM Opco entered into a fully drawn $400 million 5-year Term Loan A facility, receiving cash of $210 million at closing. The new revolving credit facility can be used for borrowings and letters of credit to fund HESM Opco’s operating activities, capital expenditures, distributions and for other general corporate purposes. 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%. Pricing levels for the facility fee and interest-rate margins are based on HESM Opco’s ratio of total debt to EBITDA as defined in the credit facilities. If HESM Opco obtains an investment grade credit rating, the pricing levels will be based on HESM Opco’s credit ratings in effect from time to time. The credit facilities contain covenants that require HESM Opco to maintain a ratio of total debt to EBITDA for the prior four fiscal quarters of not greater than 5.00 to 1.00 as of the last day of each fiscal quarter (5.50 to 1.00 during the specified period following certain acquisitions) and, prior to HESM Opco obtaining an investment grade credit rating, a ratio of secured debt to EBITDA for the prior four fiscal quarters of not greater than 4.00 to 1.00 as of the last day of each fiscal quarter. The credit facilities are secured by first-priority perfected liens on substantially all the presently owned and after-acquired assets of HESM Opco and its direct and indirect wholly owned material domestic subsidiaries, including equity interests directly owned by such entities, subject to certain customary exclusions. At December 31, 2020, borrowings of $184 million were drawn under HESM Opco’s revolving credit facility, and borrowings of $400 million, excluding deferred issuance costs, were drawn under HESM Opco’s Term Loan A facility. Borrowings under these credit facilities are non-recourse to Hess Corporation.