Debt



(in millions)	March 31, 2015		December 31, 2014
5.9% Senior Notes, due 2017 ¹	$	400	$	400
6.55% Senior Notes, due 2037 ²	399		399
Commercial paper	190		—
Revolving line of credit	175		—
Total debt	1,164		799
Less: short-term debt including current maturities	365		—
Long-term debt	$	799	$	799


¹	Interest payments are due semiannually on April 15 and October 15, and, as of March 31, 2015, the unamortized debt discount is less than $1 million.


²	Interest payments are due semiannually on May 15 and November 15, and, as of March 31, 2015, the unamortized debt discount is approximately $1 million.

The fair value of our long-term debt borrowings was $0.9 billion as of March 31, 2015 and December 31, 2014, respectively, and was estimated based on quoted market prices.

We have the ability to borrow a total of $1.0 billion through our commercial paper program, which is supported by our $1.0 billion four-year credit agreement (our “credit facility”) that we entered into in June of 2013. This credit facility will terminate on June 19, 2017.

In connection with the payment of legal and regulatory settlements recorded in 2014 and paid largely in 2015, we utilized our commercial paper program and borrowed from our credit facility during the three months ended March 31, 2015. As a result, commercial paper outstanding as of March 31, 2015 totaled $190 million with an average interest rate and term to maturity of 0.86% and 16 days. Our revolving line of credit outstanding as of March 31, 2015 totaled $175 million with an interest rate and term to maturity of 1.51% and 71 days. As of December 31, 2014, we had no commercial paper outstanding or borrowings outstanding under our credit facility.

We pay a commitment fee of 20 to 45 basis points for our credit facility, depending on our indebtedness to cash flow ratio, whether or not amounts have been borrowed, and for the first quarter of 2015 we paid a commitment fee of 20 basis points. The interest rate on borrowings under our credit facility is, at our option, calculated using rates that are primarily based on either the prevailing London Inter-Bank Offer Rate, the prime rate determined by the administrative agent or the Federal Funds Rate. For certain borrowings under this credit facility, there is also a spread based on our indebtedness to cash flow ratio added to the applicable rate.

Our credit facility contains certain covenants. The only financial covenant requires that our indebtedness to cash flow ratio, as defined in our credit facility, is not greater than 3.25 to 1, and this covenant level has never been exceeded.