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Debt

12 Months Ended

Dec. 31, 2020

Note 11. Debt

December 31	2020		2019
(In millions)

Loews Corporation (Parent Company):
Senior:
2.6% notes due 2023 (effective interest rate of 2.8%) (authorized, $500)	$	500	$	500
3.8% notes due 2026 (effective interest rate of 3.9%) (authorized, $500)		500		500
3.2% notes due 2030 (effective interest rate of 3.3%) (authorized, $500)		500
6.0% notes due 2035 (effective interest rate of 6.2%) (authorized, $300)		300		300
4.1% notes due 2043 (effective interest rate of 4.3%) (authorized, $500)		500		500
CNA Financial:
Senior:
5.8% notes due 2021 (effective interest rate of 5.9%) (authorized, $400)				400
7.3% debentures due 2023 (effective interest rate of 7.3%) (authorized, $250)		243		243
4.0% notes due 2024 (effective interest rate of 4.0%) (authorized, $550)		550		550
4.5% notes due 2026 (effective interest rate of 4.5%) (authorized, $500)		500		500
3.5% notes due 2027 (effective interest rate of 3.5%) (authorized, $500)		500		500
3.9% notes due 2029 (effective interest rate of 3.9%) (authorized, $500)		500		500
2.1% notes due 2030 (effective interest rate of 2.1%) (authorized, $500)		500
Boardwalk Pipelines:
Senior:
Variable rate revolving credit facility due 2022 (effective interest rate of 1.4% and 3.0%)		130		295
4.5% notes due 2021 (effective interest rate of 5.0%) (authorized, $440)				440
4.0% notes due 2022 (effective interest rate of 4.4%) (authorized, $300)		300		300
3.4% notes due 2023 (effective interest rate of 3.5%) (authorized, $300)		300		300
5.0% notes due 2024 (effective interest rate of 5.2%) (authorized, $600)		600		600
6.0% notes due 2026 (effective interest rate of 6.2%) (authorized, $550)		550		550
4.5% notes due 2027 (effective interest rate of 4.6%) (authorized, $500)		500		500
7.3% debentures due 2027 (effective interest rate of 8.1%) (authorized, $100)		100		100
4.8% notes due 2029 (effective interest rate of 4.9%) (authorized, $500)		500		500
3.4% notes due 2031 (effective interest rate of 3.5%) (authorized, $500)		500
Finance lease obligation		7		7
Loews Hotels & Co:
Senior debt, principally mortgages (effective interest rates approximate 4.7%)		750		712
Altium Packaging:
Senior:
Variable rate asset based lending facility due 2022 (effective interest rate of 3.5%)		10
Variable rate term loan due 2024 (effective interest rate of 4.7% and 4.9%)		585		591
Variable rate term loan due 2026 (effective interest rate of 4.1% and 5.3%)		246		249
Finance lease obligation		26		6
Diamond Offshore (a):
Senior:
3.5% notes due 2023 (effective interest rate of 3.5%) (authorized, $250)				250
7.9% notes due 2025 (effective interest rate of 8.0%) (authorized, $500)				500
5.7% notes due 2039 (effective interest rate of 5.8%) (authorized, $500)				500
4.9% notes due 2043 (effective interest rate of 4.9%) (authorized, $750)				750
		10,197		11,643
Less unamortized discount and issuance costs		88		110
Debt	$	10,109	$	11,533

(a)	Amounts presented for Diamond Offshore reflects the period prior to the deconsolidation.

			Unamortized
			Discount and
			Issuance				Short Term		Long Term
December 31, 2020	Principal		Costs		Net		Debt		Debt
(In millions)

Loews Corporation	$	2,300	$	24	$	2,276			$	2,276
CNA Financial		2,793		17		2,776				2,776
Boardwalk Pipelines		3,487		25		3,462	$	1		3,461
Loews Hotels & Co		750		8		742		16		726
Altium Packaging		867		14		853		20		833
Total	$	10,197	$	88	$	10,109	$	37	$	10,072

At December 31, 2020, the aggregate long term debt maturing in each of the next five years is approximately as follows: $37 million in 2021, $650 million in 2022, $1.1 billion in 2023, $2.0 billion in 2024, $7 million in 2025 and $6.4 billion thereafter. Long term debt is generally redeemable in whole or in part at the greater of the principal amount or the net present value of remaining scheduled payments discounted at the specified treasury rate plus a margin.

In May of 2020, Loews Corporation completed a public offering of $500 million aggregate principal amount of 3.2% senior notes due May 15, 2030. The proceeds of this offering are available for general corporate purposes.

CNA is a member of the Federal Home Loan Bank of Chicago (“FHLBC”). FHLBC membership provides participants with access to additional sources of liquidity through various programs and services. As a requirement of membership in the FHLBC, CNA held $5 million of FHLBC stock as of December 31, 2020, giving it access to approximately $111 million of additional liquidity. As of December 31, 2020 and 2019, CNA had no outstanding borrowings from the FHLBC.

In August of 2020, CNA completed a public offering of $500 million aggregate principal amount of its 2.1% senior notes due August 15, 2030 and used the net proceeds to redeem the entire $400 million outstanding aggregate principal balance of its 5.8% senior notes due August 15, 2021 and for general corporate purposes.

In 2019, CNA amended and restated its existing credit agreement with a syndicate of banks. The agreement provides a five-year $250 million senior unsecured revolving credit facility which is intended to be used for general corporate purposes. At CNA’s election, the commitments under the amended and restated credit agreement may be increased from time to time up to an additional aggregate amount of $100 million, and two one-year extensions are available prior to any anniversary of the closing date, each subject to applicable consents. As of December 31, 2020, CNA had no outstanding borrowings under the credit agreement and was in compliance with all covenants.

In August of 2020, Boardwalk Pipelines completed a public offering of $500 million aggregate principal amount of its 3.4% senior notes due February 15, 2031. Boardwalk Pipelines used the proceeds to retire the outstanding $440 million aggregate principal amount of its 4.5% senior notes due 2021 in November of 2020, to fund growth capital expenditures and for general corporate purposes. Initially, the proceeds were used to reduce outstanding borrowings under its revolving credit facility.

Boardwalk Pipelines has a revolving credit facility having aggregate lending commitments of $1,475 million maturing May 26, 2022. As of December 31, 2020, Boardwalk Pipelines had $130 million of outstanding borrowings under its revolving credit facility and had available $1,345 million of available borrowing capacity. As of February 8, 2021, Boardwalk Pipelines had $170 million of outstanding borrowings under its revolving credit facility and had $1,305 million of available borrowing capacity. As of December 31, 2020, Boardwalk Pipelines was in compliance with all covenants.

Certain of the hotels wholly or partially owned by Loews Hotels & Co are financed by debt facilities, with a number of different lenders. Each of the loan agreements underlying these facilities contain a variety of financial and operational covenants. As of December 31, 2020, Loews Hotels & Co was in compliance with these covenants.

On February 3, 2021, Altium Packaging issued a $1.05 billion seven-year secured term loan. The term loan is a variable rate facility which bears interest at a floating rate equal to the London Interbank Offered Rate (“LIBOR”) plus an applicable margin of 2.75%, subject to a 0.5% LIBOR floor. The proceeds were used to pay the outstanding principal balances of its variable rate term loans and lending facility and pay a dividend of $200 million.