Debt



(in millions)	September 30, 2016		December 31, 2015
5.9% Senior Notes, due 2017¹	$	400	$	399
2.5% Senior Notes, due 2018 ²	398		398
3.3% Senior Notes, due 2020 ³	695		695
4.0% Senior Notes, due 2025 ⁴	691		690
4.4% Senior Notes, due 2026 ⁵	891		890
2.95% Senior Notes, due 2027 ⁶	492		—
6.55% Senior Notes, due 2037 ⁷	396		396
Commercial paper	—		143
Total debt	3,963		3,611
Less: short-term debt including current maturities ¹	400		143
Long-term debt	$	3,563	$	3,468


¹	Interest payments are due semiannually on April 15 and October 15, and as of September 30, 2016, the unamortized debt discount and issuance costs are less than $1 million. We made a $400 million early repayment of our 5.9% senior notes on October 20, 2016.


²	Interest payments are due semiannually on February 15 and August 15, and as of September 30, 2016, the unamortized debt discount and issuance costs total $2 million.


³	Interest payments are due semiannually on February 14 and August 14, and as of September 30, 2016, the unamortized debt discount and issuance costs total $5 million.


⁴	Interest payments are due semiannually on June 15 and December 15, and as of September 30, 2016, the unamortized debt discount and issuance costs total $9 million.


⁵	Interest payments are due semiannually on February 15 and August 15, and as of September 30, 2016, the unamortized debt discount and issuance costs total $9 million.


⁶	Interest payments are due semiannually on January 22 and July 22, beginning on January 22, 2017, and as of September 30, 2016, the unamortized debt discount and issuance costs total $8 million.


⁷	Interest payments are due semiannually on May 15 and November 15, and as of September 30, 2016, the unamortized debt discount and issuance costs total $4 million.

The fair value of our long-term debt borrowings was $4.3 billion and $3.6 billion as of September 30, 2016 and December 31, 2015, respectively, and was estimated based on quoted market prices.

On September 22, 2016, we issued $500 million of 2.95% senior notes due in 2027. The notes are fully and unconditionally guaranteed by our wholly-owned subsidiary, Standard & Poor's Financial Services LLC. We used the net proceeds to fund the $400 million early repayment of our 5.9% senior notes due in 2017 on October 20, 2016, and intend to use the balance for general corporate purposes.

We have the ability to borrow a total of $1.2 billion through our commercial paper program, which is supported by our revolving $1.2 billion five-year credit agreement (our “credit facility”) that we entered into on June 30, 2015. This credit facility will terminate on June 30, 2020. There were no commercial paper borrowings outstanding as of September 30, 2016. Commercial paper borrowings outstanding as of December 31, 2015 totaled $143 million with an average interest rate and term of 0.95% and 17 days, respectively.

Depending on our indebtedness to cash flow ratio, we pay a commitment fee of 10 to 20 basis points for our credit facility, whether or not amounts have been borrowed. We currently pay a commitment fee of 15 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 4 to 1, and this covenant level has never been exceeded.