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Debt
 12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Debt
Note 11. Debt
December 31
 
2019
 
  
2018
 
(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
 
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:
   
     
 
5.9% notes due 2020 (effective interest rate of 6.0%) (authorized, $
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
 
    
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
 
    
 
F
inance
 lease obligation
   
     
1
 
Diamond Offshore:
 
 
 
  
 
 
Senior:
   
     
 
3.5% notes due 2023 (effective interest rate of 3.5%) (authorized, $
250
)
 
 
250
 
    
250
 
7.9% notes due 2025 (effective interest rate of 8.0%) (authorized, $
500
)
 
 
500
 
    
500
 
5.7% notes due 2039 (effective interest rate of 5.8%) (authorized, $
500
)
 
 
500
 
    
500
 
4.9% notes due 2043 (effective interest rate of 4.9%) (authorized, $
750
)
 
 
750
 
    
750
 
Boardwalk Pipelines:
 
 
 
  
 
 
Senior:
   
     
 
Variable rate revolving credit facility due 2022 (effective interest rate of 3.0% and 3.7%)
 
 
295
 
    
580
 
5.8% notes due 2019 (effective interest rate of 5.9%) (authorized, $
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
)
 
 
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
 
    
 
Finance
lease obligation
   
7
      
8
 
Loews Hotels & Co:
 
 
 
  
 
 
Senior debt, principally mortgages (effective interest rates approximate 4.7%
 and 4.4%
)
 
 
712
 
    
653
 
Altium Packaging
:
  
 
 
  
 
 
Senior:
 
 
 
    
 
Variable rate asset based lending facility due 2022 (effective interest rate of 5.5%)
 
 
 
 
    
9
 
Variable rate term loan due 2024 (effective interest rate of 4.9% and 5.0%)
 
 
591
 
    
597
 
Variable rate term loan due 2026 (effective interest rate of 5.3%)
 
 
249
 
    
 
Finance
lease obligation
 
 
6
 
    
7
 
                 
  
 
11,643
 
    
11,488
 
Less unamortized discount and issuance costs
 
 
110
 
    
112
 
                 
Debt
 
$
11,533
 
   $
11,376
 
                 
December 31, 2019
 
Principal
 
  
Unamortized
Discount and
Issuance
Costs
 
  
Net
 
  
Short Term
Debt
 
  
Long Term
Debt
 
(In millions)
 
 
  
 
  
 
  
 
  
 
Loews Corporation
 
$
1,800
 
  
$
21
 
  
$
1,779
 
  
 
 
 
  
$
1,779
 
CNA Financial
 
 
2,693
 
  
 
14
 
  
 
2,679
 
  
 
 
 
  
 
2,679
 
Diamond Offshore
 
 
2,000
 
  
 
24
 
  
 
1,976
 
  
 
 
 
  
 
1,976
 
Boardwalk Pipelines
 
 
3,592
 
  
 
26
 
  
 
3,566
 
    
 
 
  
 
3,566
 
Loews Hotels & Co
 
 
712
 
  
 
7
 
  
 
705
 
  
$
67
 
  
 
638
 
Altium Packaging
 
 
846
 
  
 
18
 
  
 
828
 
  
 
10
 
  
 
818
 
                                         
Total
 
$
11,643
 
  
$
110
 
  
$
11,533
 
  
$
77
 
  
$
11,456
 
                                         
At December 31, 2019, the aggregate long term debt maturing in each of the next five years is approximately as follows: $77 million in 2020, $861 million in 2021, $744 million in 2022, $1.3 billion in 2023, $2.0 billion in 2024 and $6.6 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, 2019, giving it access to approximately $111 million of additional liquidity. As of December 31, 2019 and 2018, CNA had
no
outstanding borrowings from the FHLBC.
In May of 2019, CNA completed a public offering of $500 million aggregate principal amount of its 3.9% senior notes due
May 1, 2029
and used the net proceeds to redeem the entire $500 million outstanding aggregate principal balance of its 5.9% senior notes due
August 15, 2020
. The redemption of the $
500
 million senior notes resulted in a loss of $21 million ($15 million after tax and noncontrolling interests) and is included in Interest expense on the Consolidated Statements of Income for the year ended December 31, 2019.
In the fourth quarter of 2019, CNA amended and restated is existing credit agreement with a syndicate of banks. The amended and restated credit 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, 2019, CNA had no outstanding borrowings under the credit agreement and was in compliance with all covenants.
Diamond Offshore
As of December 31, 2019, Diamond Offshore had
no
outstanding borrowings under its credit agreements and was in compliance with all covenant requirements under its credit agreements.
Boardwalk Pipelines
In May of 2019, Boardwalk Pipelines completed a public offering of $500 million aggregate principal amount of its 4.8% senior notes due May 3, 2029. The proceeds were used to retire the outstanding $350 million aggregate principal amount of Boardwalk Pipelines’ 5.8% senior notes at maturity
,
reduce outstanding borrowings under its revolving credit facility
 
and for general corporate purposes
.
Boardwalk Pipelines has a revolving credit facility having aggregate lending commitments of $1.5 billion maturing May 26, 2022. As of December 31, 2019, Boardwalk Pipelines had $295 million of outstanding borrowings under its credit agreement and was in compliance with all covenants.
 
Altium Packaging
In June of 2019,
Altium Packaging
 
entered into a credit agreement providing for a $250 million term loan in conjunction with the acquisitions discussed in Note 2. 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 3.5% and matures on
June 14, 2026
.