Long-Term Debt

12 Months Ended

Dec. 31, 2020

25. LONG-TERM DEBT

Bonds, notes and debentures are at fixed interest rates and are unsecured unless noted below. Included are certain bankers’ acceptances and commercial paper where the Company has the intention and the unencumbered ability to refinance the obligations for a period greater than one year.

Long-term debt as at December 31 consisted of the following:

	Weighted average interest rate (1)
millions of Canadian dollars	2020	2019	Maturity	2020		2019
Emera
Bankers acceptances, LIBOR loans	Variable	Variable	2024	$	263	$	437
Unsecured fixed rate notes	2.90%	2.90%	2023		500		500
Fixed to floating subordinated notes (USD)	6.75%	6.75%	2076		1,528		1,559
				$	2,291	$	2,496
Emera Finance
Unsecured senior notes (USD)	3.86%	3.86%	2021 - 2046	$	3,501	$	3,572
TECO Finance
Fixed rate notes and bonds (USD)	-	5.15%	-	$	-		390
Tampa Electric (2)
Fixed rate notes and bonds (USD)	4.53%	4.53%	2021 - 2050	$	3,268	$	3,334
PGS
Fixed rate notes and bonds (USD)	4.58%	4.58%	2021 - 2050	$	429	$	437
NMGC
Fixed rate notes and bonds (USD)	4.30%	4.30%	2021 - 2049	$	465	$	474
NMGI
Fixed rate notes and bonds (USD)	3.64%	3.64%	2024	$	191	$	195
NSPI
Discount notes	Variable	Variable	2024	$	291	$	308
Medium term fixed rate notes	5.14%	5.37%	2025 - 2097		2,665		2,365
				$	2,956	$	2,673
Emera Maine
LIBOR loans and demand loans		Variable		$	-	$	11
Secured fixed rate mortgage bonds (USD)	-	9.74%	-		-		65
Unsecured senior fixed rate notes (USD)	-	4.15%	-		-		442
				$	-	$	518
EBP
Senior secured credit facility	Variable	Variable	2023	$	249	$	248
ECI
Secured senior notes (USD)	Variable	Variable	2021 - 2031	$	106	$	130
Amortizing fixed rate notes (USD)	3.92%	3.89%	2021 - 2022		100	$	122
Non-revolving term facility, floating rate	Variable	-	2025		28	$	-
Non-revolving term facility, fixed rate	2.60%	-	2025		68	$	-
Secured fixed rate senior notes (3)	4.39%	4.84%	2022 - 2035		174	$	218
				$	476	$	470
Adjustments
Fair market value adjustment - TECO Energy acquisition (4)				$	5	$	8
Debt issuance costs					(110)		(119)
Classification as liabilities held for sale (5)					-		(516)
Amount due within one year					(1,382)		(501)
				$	(1,487)	$	(1,128)
Long-Term Debt				$	12,339	$	13,679
(1) Weighted average interest rate of fixed rate long-term debt.
(2) A substantial part of Tampa Electric’s tangible assets are pledged as collateral to secure its first mortgage bonds. There are currently no bonds outstanding under Tampa Electric’s first mortgage bond indenture.
(3) Notes are issued and payable in either USD, BBD or East Caribbean Dollar (XCD).
(4) On acquisition of TECO Energy, Emera recorded a fair market value adjustment on the unregulated long-term debt acquired. The fair market value adjustment is amortized over the remaining term of the debt.
(5) On March 24,2020 Emera sold Emera Maine. Refer to note 4 for further detail. As at December 31, 2019, Emera Maine’s assets and liabilities are classified as held for sale.

The Company’s total long-term revolving credit facilities, outstanding borrowings and available capacity as at December 31 were as follows:

millions of Canadian dollars	Maturity		2020		2019
Emera – revolving credit facility (1)	June 2024	$	900	$	900
NSPI - revolving credit facility (1)	October 2024		600		600
ECI – revolving credit facilities	2021-2023		28		25
Emera Maine – revolving credit facility			-		104
Total			1,528		1,629
Less:
Borrowings under credit facilities			569		771
Letters of credit issued inside credit facilities			31		65
Use of available facilities			600		836
Available capacity under existing agreements		$	928	$	793
(1) Advances on the revolving credit facility can be made by way of overdraft on accounts up to $50 million.

Debt Covenants

Emera and its subsidiaries have debt covenants associated with their credit facilities. Covenants are tested regularly and the Company is in compliance with covenant requirements. Emera’s significant covenants are listed below:

			As at
	Financial Covenant	Requirement	December 31, 2020
Emera
Syndicated credit facilities	Debt to capital ratio	Less than or equal to 0.70 to 1	0.56 : 1

Recent Significant Financing Activity by Segment

Canadian Electric Utilities

On April 24, 2020, NSPI completed a $300 million 30-year unsecured notes issuance. The notes bear interest at a rate of 3.31 per cent and have a maturity date of April 25, 2050.

Other Electric Utilities

On May 20, 2020, GBPC entered into a $22 million USD non-revolving term loan with a maturity date of May 20, 2025. The loan bears interest at a rate of 90-day LIBOR plus a margin. On May 22, 2020, proceeds from this loan were used to repay $22 million USD senior notes upon maturity.

On May 20, 2020, GBPC entered into a $15 million BSD ($15 million USD) non-revolving term loan with a maturity date of May 20, 2025. The loan bears interest at a rate of 4.00 per cent.

At December 31, 2020, BLPC had drawn $77 million BBD ($38 million USD) against a $110 million BBD ($55 million USD) non-revolving term loan. The loan bears interest at a rate of 2.05 per cent and has a 5-year term.

Gas Utilities and Infrastructure

On February 5, 2021, NMGC completed an issuance of $220 million USD senior notes. The issuance included $70 million USD senior notes that bear interest at a rate of 2.26 per cent with a maturity date of February 5, 2031, $65 million USD senior notes that bear interest at a rate of 2.51 per cent and with a maturity date of February 5, 2036, and $85 million USD senior notes that bear interest at a rate of 3.34 per cent with a maturity date of February 5, 2051. Proceeds from this issuance were used to repay a $200 million USD note, due in 2021 and for general corporate purposes. These notes were classified as long-term debt at December 31, 2020.

Other

On March 13, 2020, TECO Finance repaid a $300 million USD note upon maturity. The note was repaid using existing credit facilities.

Long-Term Debt Maturities

As at December 31, long-term debt maturities, including capital lease obligations, for each of the next five years and in aggregate thereafter are as follows:

millions of Canadian dollars		2021		2022		2023		2024		2025		Thereafter		Total
Emera	$	-	$	-	$	500	$	263	$	-	$	1,528	$	2,291
Emera US Finance LP		955		-		-		-		-		2,546		3,501
Tampa Electric		295		286		-		-		-		2,687		3,268
PGS		59		33		-		-		-		337		429
NMGC		-		-		-		-		-		465		465
NMGI		-		-		-		191		-		-		191
NSPI		-		-		-		291		125		2,540		2,956
EBP		-		-		249		-		-		-		249
ECI		73		88		60		75		101		79		476
Total	$	1,382	$	407	$	809	$	820	$	226	$	10,182	$	13,826