Debt Obligations

12 Months Ended

Dec. 31, 2019

DEBT OBLIGATIONS:

The following table sets forth the debt obligations of the Company:



	December 31,
	2019		2018
8.125% Senior Notes due 2019	$	—	$	150
7.60% Senior Notes due 2024	82		82
7.00% Senior Notes due 2029	66		66
8.25% Senior Notes due 2029	33		33
Floating Rate Junior Subordinated Notes due 2066	54		54
Unamortized fair value adjustments	12		16
Total debt outstanding	247		401
Less: Current maturities of long-term debt	—		152
Total long-term debt, less current maturities	$	247	$	249

Based on the estimated borrowing rates currently available to the Company and its subsidiaries for loans with similar terms and average maturities, the aggregate fair value of the Company’s consolidated debt obligations at December 31, 2019 and 2018 was $247 million and $392 million, respectively. The fair value of the Company’s consolidated debt obligations is a Level 2 valuation based on the observable inputs used for similar liabilities.

As of December 31, 2019, the Company has scheduled long-term debt principal payments as follows:



Years Ended December 31,
2020	$	—
2021	—
2022	—
2023	—
2024	82
Thereafter	153
Total	$	235

Senior Notes

Panhandle’s 8.125% Senior Notes in the amount of $150 million matured on June 1, 2019 and were repaid with borrowings under an affiliate loan agreement.

Panhandle’s 7.00% Senior Notes in the amount of $400 million matured on June 15, 2018 and were repaid with borrowings under an affiliate loan agreement.

Floating Rate Junior Subordinated Notes

The interest rate on the remaining portion of PEPL’s $600 million junior subordinated notes due 2066 is a variable rate based upon the three-month London Interbank Offered Rate plus 3.0175%. The balance of the variable rate portion of the junior subordinated notes was $54 million at an effective interest rate of 4.927% and 5.559% at December 31, 2019, and 2018.

Compliance With Our Covenants

The Company’s notes are subject to certain requirements, such as the maintenance of a fixed charge coverage ratio and a leverage ratio, which if not maintained, restrict the ability of the Company to make certain payments and impose limitations on the ability of the Company to subject its property to liens. Other covenants impose limitations on restricted payments, including dividends and loans to affiliates, and additional indebtedness. As of December 31, 2019, the Company is in compliance with these covenants.

The Company will continue to opportunistically evaluate alternatives for funding its debt repayment obligations. Alternatives include, but are not limited to, refinancing of amounts due with new senior notes, a term loan facility or a loan provided by ETO or other affiliates.