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DEBT (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2019
Long-term Debt, Unclassified [Abstract] |
DEBT | DEBT The following table sets forth our consolidated debt for the periods indicated:
|  | December 31, 2019 |  | December 31, 2018
|  | (Thousands of dollars)
Commercial paper outstanding, bearing a weighted-average interest rate of 2.16% as of December 31, 2019 | $ | 220,000 |  |  | $ | — |
Senior unsecured obligations: |  |  |  |
$500,000 at 8.625% due March 2019 |  | — |  |  | 500,000 |
$300,000 at 3.8% due March 2020 |  | — |  |  | 300,000 |
$1,500,000 term loan, rate of 2.70% and 3.63% as of December 31, 2019 and 2018, respectively, due November 2021 |  | 1,250,000 |  |  | 550,000 |
$700,000 at 4.25% due February 2022 |  | 547,397 |  |  | 547,397 |
$900,000 at 3.375 % due October 2022 |  | 900,000 |  |  | 900,000 |
$425,000 at 5.0 % due September 2023 |  | 425,000 |  |  | 425,000 |
$500,000 at 7.5% due September 2023 |  | 500,000 |  |  | 500,000 |
$500,000 at 2.75% due September 2024 |  | 500,000 |  |  | — |
$500,000 at 4.9 % due March 2025 |  | 500,000 |  |  | 500,000 |
$500,000 at 4.0% due July 2027 |  | 500,000 |  |  | 500,000 |
$800,000 at 4.55% due July 2028 |  | 800,000 |  |  | 800,000 |
$100,000 at 6.875% due September 2028 |  | 100,000 |  |  | 100,000 |
$700,000 at 4.35% due March 2029 |  | 700,000 |  |  | — |
$750,000 at 3.4% due September 2029 |  | 750,000 |  |  | — |
$400,000 at 6.0% due June 2035 |  | 400,000 |  |  | 400,000 |
$600,000 at 6.65% due October 2036 |  | 600,000 |  |  | 600,000 |
$600,000 at 6.85% due October 2037 |  | 600,000 |  |  | 600,000 |
$650,000 at 6.125% due February 2041 |  | 650,000 |  |  | 650,000 |
$400,000 at 6.2% due September 2043 |  | 400,000 |  |  | 400,000 |
$700,000 at 4.95% due July 2047 |  | 700,000 |  |  | 700,000 |
$1,000,000 at 5.2% due July 2048 |  | 1,000,000 |  |  | 450,000 |
$750,000 at 4.45% due September 2049 |  | 750,000 |  |  | — |
Guardian Pipeline |  |  |  |
Weighted average 7.85% due December 2022 |  | 21,307 |  |  | 28,957 |
Total debt |  | 12,813,704 |  |  | 9,451,354 |
Unamortized portion of terminated swaps |  | 15,032 |  |  | 16,750 |
Unamortized debt issuance costs and discounts |  | (121,329 | ) |  | (87,120 | )
Current maturities of long-term debt |  | (7,650 | ) |  | (507,650 | )
Short-term borrowings (a) |  | (220,000 | ) |  | — |
Long-term debt |  | $ | 12,479,757 |  |  | $ | 8,873,334 |
(a) - Individual issuances of commercial paper under our commercial paper program generally mature in 90 days or less. $2.5 Billion Credit Agreement - In May 2019, we extended the term of our $2.5 Billion Credit Agreement by one year to June 2024. Our $2.5 Billion Credit Agreement is a revolving credit facility and contains certain financial, operational and legal covenants. Among other things, these covenants include maintaining a ratio of indebtedness to adjusted EBITDA (EBITDA, as defined in our $2.5 Billion Credit Agreement, adjusted for all noncash charges and increased for projected EBITDA from certain lender-approved capital expansion projects) of no more than 5.0 to 1 at December 31, 2019. If we consummate one or more acquisitions in which the aggregate purchase is $25 million or more, the allowable ratio of indebtedness to adjusted EBITDA will increase to 5.5 to 1 for the quarter in which the acquisition is completed and the following two quarters. Thereafter, the covenant will decrease to 5.0 to 1. Our $2.5 Billion Credit Agreement includes a $100 million sublimit for the issuance of standby letters of credit and a $200 million sublimit for swingline loans. Under the terms of our $2.5 Billion Credit Agreement, we may request an increase in the size of the facility to an aggregate of $3.5 billion by either commitments from new lenders or increased commitments from existing lenders. Our $2.5 Billion Credit Agreement contains provisions for an applicable margin rate and an annual facility fee, both of which adjust with changes in our credit ratings. Based on our current credit ratings, borrowings, if any, will accrue at LIBOR plus 110 basis points, and the annual facility fee is 15 basis points. At December 31, 2019, our ratio of indebtedness to adjusted EBITDA was 4.1 to 1, and we were in compliance with all covenants under our $2.5 Billion Credit Agreement. At December 31, 2019 and 2018, we had letters of credit issued totaling $4.7 million and $1.4 million, respectively, and no borrowings outstanding under our $2.5 Billion Credit Agreement. Senior Unsecured Obligations - All notes are senior unsecured obligations, ranking equally in right of payment with all of our existing and future unsecured senior indebtedness, and are structurally subordinate to any of the existing and future debt and other liabilities of any nonguarantor subsidiaries. Issuances - In August 2019, we completed an underwritten public offering of $2.0 billion senior unsecured notes consisting of $500 million, 2.75% senior notes due 2024; $750 million, 3.4% senior notes due 2029; and $750 million, 4.45% senior notes due 2049. The net proceeds, after deducting underwriting discounts, commissions and offering expenses, were $1.97 billion. The proceeds were used for general corporate purposes, including repayment of existing indebtedness and funding capital expenditures. In March 2019, we completed an underwritten public offering of $1.25 billion senior unsecured notes consisting of $700 million, 4.35% senior notes due 2029 and an additional issuance of $550 million of our existing 5.2% senior notes due 2048. The net proceeds, after deducting underwriting discounts, commissions and offering expenses, and exclusive of accrued interest, were $1.23 billion. The proceeds were used for general corporate purposes, including repayment of existing indebtedness and funding capital expenditures. In November 2018, we entered into our $1.5 Billion Term Loan Agreement with a syndicate of banks, which was fully drawn as of June 30, 2019. We repaid $250 million of our outstanding balance in August 2019 and have $1.25 billion drawn as of December 31, 2019. Our $1.5 Billion Term Loan Agreement matures in November 2021 and bears interest at LIBOR plus 112.5 basis points based on our current credit ratings. The agreement contains an option, which may be exercised up to two times, to extend the term of the loan, in each case, for an additional one-year term subject to approval of the banks. Our $1.5 Billion Term Loan Agreement allows prepayment of all or any portion outstanding, without penalty or premium, and contains substantially the same covenants as those contained in our $2.5 Billion Credit Agreement. The proceeds were used for general corporate purposes, including repayment of existing indebtedness and funding capital expenditures. In July 2018, we completed an underwritten public offering of $1.25 billion senior unsecured notes consisting of $800 million, 4.55% senior notes due 2028 and $450 million, 5.2% senior notes due 2048. The net proceeds, after deducting underwriting discounts, commissions and offering expenses, were $1.23 billion. The proceeds were used for general corporate purposes, which included repayment of existing indebtedness and funding capital expenditures. In July 2017, we completed an underwritten public offering of $1.2 billion senior unsecured notes consisting of $500 million, 4.0% senior notes due 2027, and $700 million, 4.95% senior notes due 2047. The net proceeds, after deducting underwriting discounts, commissions and offering expenses, were $1.2 billion. The proceeds were used for general corporate purposes, which included repayment of existing indebtedness and funding capital expenditures. Repayments - In September 2019, we redeemed our $300 million, 3.8% senior notes due March 2020 at a redemption price of $308.0 million, including the outstanding principal, plus accrued and unpaid interest, with cash on hand from our public offering of $2.0 billion senior unsecured notes in August 2019. In connection with this early redemption, we incurred a $2.7 million loss on extinguishment of debt, which is included in other expense in our Consolidated Statements of Income for the year ended December 31, 2019. In August 2019, we repaid $250 million of our $1.5 Billion Term Loan agreement with cash on hand. In March 2019, we repaid our $500 million, 8.625% senior notes at maturity with a combination of cash on hand and short-term borrowings. In 2018, we repaid our $425 million, 3.2% senior notes due September 2018 with cash on hand and the remaining $500 million of the ONEOK Partners Term Loan Agreement due 2019 with a combination of cash on hand and short-term borrowings. In 2017, we repaid ONEOK Partners’ $400 million, 2.0% senior notes due in October 2017 and repaid $500 million of the ONEOK Partners Term Loan Agreement due 2019 with a combination of cash on hand and short-term borrowings and redeemed our 6.5% senior notes due 2028 at a redemption price of $87.0 million with cash on hand. The aggregate maturities of long-term debt outstanding as of December 31, 2019, for the years 2020 through 2024 are shown below:
|  | Senior Unsecured Obligations |  | Guardian Pipeline |  | Total
|  | (Millions of dollars)
2020 |  | $ | — |  |  | $ | 7.7 |  |  | $ | 7.7 |
2021 |  | $ | 1,250.0 |  |  | $ | 7.7 |  |  | $ | 1,257.7 |
2022 |  | $ | 1,447.4 |  |  | $ | 5.9 |  |  | $ | 1,453.3 |
2023 |  | $ | 925.0 |  |  | $ | — |  |  | $ | 925.0 |
2024 |  | $ | 500.0 |  |  | $ | — |  |  | $ | 500.0 |
Covenants - Our senior notes are governed by indentures containing covenants, including among other provisions, limitations on our ability to place liens on our property or assets and to sell and leaseback our property. The indentures governing our 6.875% senior notes due 2028 include an event of default upon acceleration of other indebtedness of $15 million or more, and the indentures governing the remainder of our senior notes include an event of default upon the acceleration of other indebtedness of $100 million or more. Such events of default would entitle the trustee or the holders of 25% in aggregate principal amount of the outstanding senior notes to declare those senior notes immediately due and payable in full. The indenture for the 7.5% notes due 2023 also contains a provision that allows the holders of the notes to require ONEOK to offer to repurchase all or any part of their notes if a change of control and a credit rating downgrade occur at a purchase price of 101% of the principal amount, plus accrued and unpaid interest, if any. We may redeem our senior notes, in whole or in part, at any time prior to their maturity at a redemption price equal to the principal amount, plus accrued and unpaid interest and a make-whole premium. We may redeem the balance of our senior notes due 2022, 2023, 2024, 2025, 2027, 2028 (4.55%), 2029, 2041, 2043, 2047, 2048 and 2049 at a redemption price equal to the principal amount, plus accrued and unpaid interest, starting one to six months before the maturity date as stipulated in the respective contract terms. Our senior notes are senior unsecured obligations, ranking equally in right of payment with all of our existing and future unsecured senior indebtedness. Guardian Pipeline Senior Notes - These senior notes were issued under a master shelf agreement dated November 8, 2001, with certain financial institutions. Principal payments are due quarterly through 2022. Guardian Pipeline’s senior notes contain financial covenants that require the maintenance of certain financial ratios as defined in the master shelf agreement based on Guardian Pipeline’s financial position and results of operations. Upon any breach of these covenants, all amounts outstanding under the master shelf agreement may become due and payable immediately. At December 31, 2019, Guardian Pipeline was in compliance with its financial covenants. Other - We amortize premiums, discounts and expenses incurred in connection with the issuance of long-term debt consistent with the terms of the respective debt instrument. Debt Guarantees - ONEOK, ONEOK Partners and the Intermediate Partnership have cross guarantees in place for our and ONEOK Partners’ indebtedness.

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- Definition The entire disclosure for 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, own-share lending arrangements 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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