2.2.0.7 false Debt Obligations 0210 - Disclosure - Debt Obligations true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Debt Obligations [Abstract] 0 bpl_DebtObligationsAbstract bpl false na duration Debt Obligations. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string Debt Obligations. false 3 DEBT OBLIGATIONS 1 us-gaap_DebtDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0   <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>10. DEBT OBLIGATIONS</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Long-term debt consists of the following at the dates indicated: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="50%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">4.625% Notes due July 15, 2013 (1) </div></td> <td> </td> <td align="left">$</td> <td align="right">300,000</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">300,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">5.300% Notes due October 15, 2014 (1) </div></td> <td> </td> <td> </td> <td align="right">275,000</td> <td> </td> <td> </td> <td> </td> <td align="right">275,000</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">5.125% Notes due July 1, 2017 (1) </div></td> <td> </td> <td> </td> <td align="right">125,000</td> <td> </td> <td> </td> <td> </td> <td align="right">125,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">6.050% Notes due January 15, 2018 (1) </div></td> <td> </td> <td> </td> <td align="right">300,000</td> <td> </td> <td> </td> <td> </td> <td align="right">300,000</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">5.500% Notes due August 15, 2019 (1) </div></td> <td> </td> <td> </td> <td align="right">275,000</td> <td> </td> <td> </td> <td> </td> <td align="right">275,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">6.750% Notes due August 15, 2033 (1) </div></td> <td> </td> <td> </td> <td align="right">150,000</td> <td> </td> <td> </td> <td> </td> <td align="right">150,000</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Credit Facility </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">78,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">BES Credit Agreement </div></td> <td> </td> <td> </td> <td align="right">194,179</td> <td> </td> <td> </td> <td> </td> <td align="right">239,800</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total debt </div></td> <td> </td> <td> </td> <td align="right">1,619,179</td> <td> </td> <td> </td> <td> </td> <td align="right">1,742,800</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Less: Unamortized discount </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,525</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,854</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Adjustment associated with fair value hedges </div></td> <td> </td> <td> </td> <td align="right">706</td> <td> </td> <td> </td> <td> </td> <td align="right">824</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Subtotal debt </div></td> <td> </td> <td> </td> <td align="right">1,615,360</td> <td> </td> <td> </td> <td> </td> <td align="right">1,738,770</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Less: Current portion of long-term debt </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(194,179</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(239,800</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total long-term debt </div></td> <td> </td> <td align="left">$</td> <td align="right">1,421,181</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,498,970</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(1)</td> <td> </td> <td>We make semi-annual interest payments on these notes based on the rates noted above with the principal balances outstanding to be paid on or before the due dates as shown above.</td> </tr> </table> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair values of our aggregate debt and credit facilities were estimated to be $1,672.6 million and $1,762.1 million at June 30, 2010 and December 31, 2009, respectively. The fair values of the fixed-rate debt were estimated by observing market trading prices and by comparing the historic market prices of our publicly-issued debt with the market prices of other MLPs’ publicly-issued debt with similar credit ratings and terms. The fair values of the variable-rate debt are their carrying amounts, as the carrying amount reasonably approximates fair value due to the variability of the interest rates. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt">  <i>Credit Facility</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     We have a borrowing capacity of $580.0 million under an unsecured revolving credit agreement (the “Credit Facility”) with SunTrust Bank, as administrative agent, which may be expanded up to $780.0 million subject to certain conditions and upon the further approval of the lenders. The Credit Facility’s maturity date is August 24, 2012, which we may extend for up to two additional one-year periods. Borrowings under the Credit Facility bear interest under one of two rate options, selected by us, equal to either (i) the greater of (a) the federal funds rate plus 0.5% and (b) SunTrust Bank’s prime rate plus an applicable margin, or (ii) the London Interbank Offered Rate (“LIBOR”) plus an applicable margin. The applicable margin is determined based on the current utilization level of the Credit Facility and ratings assigned by Standard & Poor’s Rating Services and Moody’s Investor Service for our senior unsecured non-credit enhanced long-term debt. At June 30, 2010, no amounts were outstanding under the Credit Facility, while at December 31, 2009, $78.0 million was outstanding under the Credit Facility. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The Credit Facility requires us to maintain a specified ratio (the “Funded Debt Ratio”) of no greater than 5.00 to 1.00 subject to a provision that allows for increases to 5.50 to 1.00 in connection with certain future acquisitions. The Funded Debt Ratio is calculated by dividing consolidated debt by annualized EBITDA, which is defined in the Credit Facility as earnings before interest, taxes, depreciation, depletion and amortization, in each case excluding the income of certain of our majority-owned subsidiaries and equity investments (but including distributions from those majority-owned subsidiaries and equity investments). At June 30, 2010, our Funded Debt Ratio was approximately 3.86 to 1.00. As permitted by the Credit Facility, the $194.2 million of borrowings by Buckeye Energy Services LLC (“BES”) under its separate credit agreement (discussed below) was excluded from the calculation of the Funded Debt Ratio. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In addition, the Credit Facility contains other covenants including, but not limited to, covenants limiting our ability to incur additional indebtedness, to create or incur liens on our property, to dispose of property material to our operations, and to consolidate, merge or transfer assets. At June 30, 2010, we were not aware of any instances of noncompliance with the covenants under our Credit Facility. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     At June 30, 2010 and December 31, 2009, we had committed $1.4 million in support of letters of credit. The obligations for letters of credit are not reflected as debt on our condensed consolidated balance sheets. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt">  <i>BES Credit Agreement</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     BES had a credit agreement (the “BES Credit Agreement”) that provided for borrowings of up to $250.0 million with a maturity date of May 20, 2011. On June 25, 2010, BES amended and restated the BES Credit Agreement to increase the total commitments for borrowings available to BES up to $500.0 million. However, the maximum amount available to be borrowed under the amended and restated BES Credit Agreement is initially limited to $350.0 million. An accordion feature provides BES the ability to increase the commitments under the BES Credit Agreement to $500.0 million, subject to obtaining the requisite commitments and satisfying other customary conditions. In addition to the accordion, subject to BES’s satisfaction of certain financial covenants as set forth in the financial covenants table below, BES may, from time to time, elect to increase or decrease the maximum amount available for borrowing under the BES Credit Agreement in $5.0 million increments, but in no event below $150.0 million or above $500.0 million. The maturity date of the BES Credit Agreement is June 25, 2013. BES incurred $3.2 million of debt issuance costs related to the amendment, which will be amortized into interest expense over the term of the BES Credit Agreement. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Under the BES Credit Agreement, borrowings accrue interest under one of three rate options, at BES’s election, equal to (i) the Administrative Agent’s Cost of Funds (as defined in the BES Credit Agreement) plus 2.25%, (ii) the Eurodollar Rate (as defined in the BES Credit Agreement) plus 2.25% or (iii) the Prime Rate (as defined in the BES Credit Agreement) plus 1.25%. The BES Credit Agreement also permits Daylight Overdraft Loans (as defined in the BES Credit Agreement), Swingline Loans (as defined in the BES Credit Agreement) and letters of credit. Such alternative extensions of credit are subject to certain conditions as specified in the BES Credit Agreement. The BES Credit Agreement is secured by liens on certain assets of BES, including its inventory, cash deposits (other than certain accounts), investments and hedging accounts, receivables and intangibles. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The balances outstanding under the BES Credit Agreement were approximately $194.2 million and $239.8 million at June 30, 2010 and December 31, 2009, respectively, both of which were classified as current liabilities in our condensed consolidated balance sheets. The BES Credit Agreement requires BES to meet certain financial covenants, which are defined in the BES Credit Agreement and summarized below (in millions, except for the leverage ratio): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="25%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="11%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>Borrowings</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Minimum</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Minimum</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Maximum</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>outstanding on</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Consolidated Tangible</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Consolidated Net</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Consolidated</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>BES Credit Agreement</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Net Worth</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Working Capital</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Leverage Ratio</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="center"> <div style="margin-left:15px; text-indent:-15px">$150 </div></td> <td> </td> <td align="right">$</td> <td align="right">40</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">30</td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center">7.0 to 1.0</td> <td> </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="center"> <div style="margin-left:15px; text-indent:-15px">Above $150 up to $200 </div></td> <td> </td> <td align="right">$</td> <td align="right">50</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">40</td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center">7.0 to 1.0</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="center"> <div style="margin-left:15px; text-indent:-15px">Above $200 up to $250 </div></td> <td> </td> <td align="right">$</td> <td align="right">60</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">50</td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center">7.0 to 1.0</td> <td> </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="center"> <div style="margin-left:15px; text-indent:-15px">Above $250 up to $300 </div></td> <td> </td> <td align="right">$</td> <td align="right">72</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">60</td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center">7.0 to 1.0</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="center"> <div style="margin-left:15px; text-indent:-15px">Above $300 up to $350 </div></td> <td> </td> <td align="right">$</td> <td align="right">84</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">70</td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center">7.0 to 1.0</td> <td> </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="center"> <div style="margin-left:15px; text-indent:-15px">Above $350 up to $400 </div></td> <td> </td> <td align="right">$</td> <td align="right">96</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">80</td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center">7.0 to 1.0</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="center"> <div style="margin-left:15px; text-indent:-15px">Above $400 up to $450 </div></td> <td> </td> <td align="right">$</td> <td align="right">108</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">90</td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center">7.0 to 1.0</td> <td> </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="center"> <div style="margin-left:15px; text-indent:-15px">Above $450 up to $500 </div></td> <td> </td> <td align="right">$</td> <td align="right">120</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">100</td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center">7.0 to 1.0</td> <td> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     At June 30, 2010, BES’s Consolidated Tangible Net Worth and Consolidated Net Working Capital were $121.3 million and $71.5 million, respectively, and the Consolidated Leverage Ratio was 2.3 to 1.0. The weighted average interest rate for borrowings outstanding under the BES Credit Agreement was 2.5% at June 30, 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In addition, the BES Credit Agreement contains other covenants, including, but not limited to, covenants limiting BES’s ability to incur additional indebtedness, to create or incur certain liens on its property, to consolidate, merge or transfer its assets, to make dividends or distributions, to dispose of its property, to make investments, to modify its risk management policy, or to engage in business activities materially different from those presently conducted. At June 30, 2010, we were not aware of any instances of noncompliance with the covenants under the BES Credit Agreement. </div> <div align="left"> </div> </div>  <!-- Begin Block Tagged Note false false false us-types:textBlockItemType textblock Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. 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