DEBT DEBT (Notes)

6 Months Ended

Jun. 30, 2020

DEBT

The following table sets forth our consolidated debt for the periods indicated:



	June 30, 2020			December 31, 2019
	(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:
$1,500,000 term loan at 2.70% as of December 31, 2019, due November 2021	—			1,250,000
$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
$500,000 at 4.9% due March 2025	500,000			500,000
$400,000 at 2.2% due September 2025	387,000			—
$600,000 at 5.85% due January 2026	600,000			—
$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			700,000
$750,000 at 3.4% due September 2029	714,251			750,000
$850,000 at 3.1% due March 2030	780,093			—
$600,000 at 6.35% due January 2031	600,000			—
$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	689,006			700,000
$1,000,000 at 5.2% due July 2048	1,000,000			1,000,000
$750,000 at 4.45% due September 2049	737,736			750,000
$500,000 at 4.5% due March 2050	467,625			—
$300,000 at 7.15% due January 2051	300,000			—
Guardian Pipeline
Weighted average 7.85% due December 2022	17,482			21,307
Total debt	14,415,590			12,813,704
Unamortized portion of terminated swaps	14,173			15,032
Unamortized debt issuance costs and discounts	(145,881		)	(121,329		)
Current maturities of long-term debt	(7,650		)	(7,650		)
Short-term borrowings (a)	—			(220,000		)
Long-term debt	$	14,276,232		$	12,479,757

(a) - Individual issuances of commercial paper under our commercial paper program generally mature in 90 days or less.

$2.5 Billion Credit Agreement - 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 net 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 June 30, 2020. In June 2020, we amended the $2.5 Billion Credit Agreement by, among other things, modifying the leverage ratio so that we may net up to $700 million of cash on hand against our consolidated indebtedness for purposes of calculating the ratio’s numerator for the fiscal quarters ending June 30, 2020, September 30, 2020, and December 31, 2020. At June 30, 2020, we had no outstanding borrowings, our ratio of net indebtedness to adjusted EBITDA was 4.5 to 1, and we were in compliance with all covenants under our $2.5 Billion Credit Agreement.

Debt Issuances - In May 2020, we completed an underwritten public offering of $1.5 billion senior unsecured notes consisting of $600 million, 5.85% senior notes due 2026; $600 million, 6.35% senior notes due 2031; and $300 million, 7.15% senior notes due 2051. The net proceeds, after deducting underwriting discounts, commissions and offering expenses, were $1.48 billion. A portion of the proceeds were used to repay the outstanding borrowings under our $1.5 Billion Term Loan Agreement. The remainder was used for general corporate purposes.

In March 2020, we completed an underwritten public offering of $1.75 billion senior unsecured notes consisting of $400 million, 2.2% senior notes due 2025; $850 million, 3.1% senior notes due 2030; and $500 million, 4.5% senior notes due 2050. The net proceeds, after deducting underwriting discounts, commissions and offering expenses, were $1.73 billion. A portion of the proceeds were used to pay all outstanding amounts under our commercial paper program. The remainder was used for general corporate purposes, which included repayment of other existing indebtedness and funding capital expenditures.

Debt Repayments - In May 2020, we repaid the remaining $1.25 billion of our $1.5 Billion Term Loan Agreement with cash on hand from our May 2020 public offering of $1.5 billion senior unsecured notes.

During the three and six months ended June 30, 2020, we repurchased in the open market outstanding principal of certain of our senior notes in the amounts of $107.3 million and $174.3 million, respectively, for an aggregate repurchase price of $101.8 million and $152.3 million, respectively, with cash on hand. In connection with these open market repurchases, we recognized $4.3 million and $20.0 million of gains on extinguishment of debt, which is included in other income in our Consolidated Statement of Income for the three and six months ended June 30, 2020, respectively.

Debt Guarantees - We, ONEOK Partners and the Intermediate Partnership have cross guarantees in place for our and ONEOK Partners’ indebtedness.

For additional discussion of our $2.5 Billion Credit Agreement, see Note F of the Notes to Consolidated Financial Statements in our Annual Report.