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Debt
 12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
Debt

Note 11.  Debt

 

December 31    2016        2015      

 

  
(In millions)              

Loews Corporation (Parent Company):

      

Senior:

      

5.3% notes due 2016 (effective interest rate of 5.4%) (authorized, $400)

       $         400         

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            

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:

      

6.5% notes due 2016 (effective interest rate of 6.6%) (authorized, $350)

         350         

7.0% notes due 2018 (effective interest rate of 7.1%) (authorized, $150)

      150               150         

7.4% notes due 2019 (effective interest rate of 7.5%) (authorized, $350)

      350               350         

5.9% notes due 2020 (effective interest rate of 6.0%) (authorized, $500)

      500               500         

5.8% notes due 2021 (effective interest rate of 5.9%) (authorized, $400)

      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            

Variable rate note due 2036 (effective interest rate of 4.3% and 3.8%)

      30               30         

Capital lease obligation

      5               4         

Diamond Offshore:

      

Senior:

      

Commercial paper (weighted average interest rate of 0.9%)

         287         

Variable rate revolving credit facility due 2020 (effective interest rate of 1.9%)

      104            

5.9% notes due 2019 (effective interest rate of 6.0%) (authorized, $500)

      500               500         

3.5% notes due 2023 (effective interest rate of 3.6%) (authorized, $250)

      250               250         

5.7% notes due 2039 (effective interest rate of 5.8%) (authorized, $500)

      500               500         

4.9% notes due 2043 (effective interest rate of 5.0%) (authorized, $750)

      750               750         

Boardwalk Pipeline:

      

Senior:

      

Variable rate revolving credit facility due 2021 (effective interest rate of 2.0% and 1.7%)

      180               375         

5.9% notes due 2016 (effective interest rate of 6.0%) (authorized, $250)

         250         

5.5% notes due 2017 (effective interest rate of 5.6%) (authorized, $300)

      300               300         

6.3% notes due 2017 (effective interest rate of 6.4%) (authorized, $275)

      275               275         

5.2% notes due 2018 (effective interest rate of 5.4%) (authorized, $185)

      185               185         

5.8% notes due 2019 (effective interest rate of 5.9%) (authorized, $350)

      350               350         

4.5% notes due 2021 (effective interest rate of 5.0%) (authorized, $440)

      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 and $350)

      600               600         

6.0% notes due 2026 (effective interest rate of 6.2%) (authorized, $550)

      550            

7.3% debentures due 2027 (effective interest rate of 8.1%) (authorized, $100)

      100               100         

Capital lease obligation

      9               10         

Loews Hotels:

      

Senior debt, principally mortgages (effective interest rates approximate 4.1%)

      650               598         

 

  
     10,871               10,647         

Less unamortized discount and issuance costs

      93               87         

 

  

Debt

    $       10,778             $       10,560         

 

  

 

December 31, 2016    Principal    Unamortized
Discount and
Issuance
Costs		    Net    Short Term
Debt		      Long Term  
Debt
   
(In millions)                         

Loews Corporation

      $ 1,800           $           25        $ 1,775               $     1,775  

CNA Financial

        2,728             13          2,715          $             2          2,713  

Diamond Offshore

        2,104             19          2,085            104          1,981  

Boardwalk Pipeline

        3,589             31          3,558            1          3,557  

Loews Hotels

        650             5          645            3          642  
   

Total

      $     10,871           $       93        $     10,778          $         110        $   10,668  
   
              

At December 31, 2016, the aggregate long term debt maturing in each of the next five years is approximately as follows: $110 million in 2017, $534 million in 2018, $1.3 billion in 2019, $550 million in 2020, $1.6 billion in 2021, and $6.8 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.

CNA Financial

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, 2016, giving it access to approximately $111 million of additional liquidity. As of December 31, 2016 and 2015, CNA had no outstanding borrowings from the FHLBC.

In the first quarter of 2016, CNA completed a public offering of $500 million aggregate principal amount of 4.5% senior notes due March 1, 2026 and used the net proceeds to repay the entire $350 million outstanding principal amount of its 6.5% senior notes due August 15, 2016.

CNA has a five-year $250 million senior unsecured revolving credit facility with a syndicate of banks which may be used for general corporate purposes. At CNA’s election, the commitments under the credit agreement may be increased from time to time up to an additional aggregate amount of $100 million and the credit agreement includes two optional one-year extensions prior to the first and second anniversary of the closing date, subject to applicable consents. As of December 31, 2016 and 2015, there were no outstanding borrowings under the credit agreements and CNA was in compliance with all covenants.

Diamond Offshore

In the first quarter of 2016, Diamond Offshore cancelled its commercial paper program and repaid $287 million in commercial paper outstanding at December 31, 2015 with proceeds from borrowings under its revolving credit agreement.

Diamond Offshore has a $1.5 billion senior unsecured revolving credit facility that matures in October of 2020, except for $40 million of commitments that mature in March of 2019 and $60 million of commitments that mature in October of 2019. In addition, Diamond Offshore also has the option to increase the revolving commitments under the revolving credit facility by up to an additional $500 million from time to time, upon receipt of additional commitments from new or existing lenders, and to request one additional one-year extension of the maturity date. Up to $250 million of the facility may be used for the issuance of performance or other standby letters of credit and up to $100 million may be used for swingline loans.

 

Boardwalk Pipeline

In May of 2016, Boardwalk Pipeline completed a public offering of $550 million aggregate principal amount of 6.0% senior notes due June 1, 2026 and used the proceeds to reduce borrowings under its revolving credit facility.

In November of 2016, the outstanding aggregate principal amount of the 5.9% senior notes was retired with borrowings under its revolving credit facility.

In January of 2017, Boardwalk Pipeline completed a public offering of $500 million aggregate principal amount of 4.5% senior notes due July 15, 2027 and will use the proceeds to refinance future maturities of debt and to fund growth capital expenditures. Initially, the proceeds were used to reduce outstanding borrowings under its revolving credit facility.

Boardwalk Pipeline has a revolving credit facility having aggregate lending commitments of $1.5 billion. During the third quarter of 2016, Boardwalk Pipeline extended the maturity date of the revolving credit facility by one year to May 26, 2021.

Boardwalk Pipeline has in place a subordinated loan agreement with a subsidiary of the Company under which it can borrow up to $300 million until December 31, 2018. Boardwalk Pipeline had no outstanding borrowings under the subordinated loan agreement.

Loews Corporation

In March of 2016, the Company completed a public offering of $500 million aggregate principal amount of 3.8% senior notes due April 1, 2026 and repaid in full the entire $400 million aggregate principal amount of its 5.3% senior notes at maturity.