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Debt | 9 Months Ended
--- | ---
Sep. 30, 2014
Debt |
Debt | Note 6—Debt Debt consisted of the following as of the dates indicated (in millions):
|  | September 30, |  | December 31, |
|  | 2014 |  | 2013 |
SHORT-TERM DEBT |  |  |  |  |
PAA commercial paper notes, bearing a weighted-average interest rate of 0.30% and 0.33%, respectively (1) |  | $ | 423 |  | $ | 1,109 |
PAA senior notes: |  |  |  |  |
5.25% senior notes due June 2015 |  | 150 |  | — |
3.95% senior notes due September 2015 |  | 400 |  | — |
Other |  | 3 |  | 4 |
Total short-term debt |  | 976 |  | 1,113 |
LONG-TERM DEBT |  |  |  |  |
PAA senior notes: |  |  |  |  |
5.25% senior notes due June 2015 |  | — |  | 150 |
3.95% senior notes due September 2015 |  | — |  | 400 |
5.88% senior notes due August 2016 |  | 175 |  | 175 |
6.13% senior notes due January 2017 |  | 400 |  | 400 |
6.50% senior notes due May 2018 |  | 600 |  | 600 |
8.75% senior notes due May 2019 |  | 350 |  | 350 |
5.75% senior notes due January 2020 |  | 500 |  | 500 |
5.00% senior notes due February 2021 |  | 600 |  | 600 |
3.65% senior notes due June 2022 |  | 750 |  | 750 |
2.85% senior notes due January 2023 |  | 400 |  | 400 |
3.85% senior notes due October 2023 |  | 700 |  | 700 |
3.60% senior notes due November 2024 |  | 750 |  | — |
6.70% senior notes due May 2036 |  | 250 |  | 250 |
6.65% senior notes due January 2037 |  | 600 |  | 600 |
5.15% senior notes due June 2042 |  | 500 |  | 500 |
4.30% senior notes due January 2043 |  | 350 |  | 350 |
4.70% senior notes due June 2044 |  | 700 |  | — |
Unamortized discounts |  | (16 | ) | (15 | )
PAA senior notes, net of unamortized discounts |  | 7,609 |  | 6,710 |
Credit Facilities and Other: |  |  |  |  |
AAP term loan, bearing a weighted-average interest rate of 1.8% and 1.9%, respectively (2) |  | 500 |  | 500 |
AAP senior secured revolving credit facility, bearing a weighted-average interest rate of 1.7% and 2.2%, respectively (2) |  | 31 |  | 15 |
Other |  | 4 |  | 5 |
Total long-term debt |  | 8,144 |  | 7,230 |
Total debt (3) |  | $ | 9,120 |  | $ | 8,343 |
(1) PAA commercial paper notes are backstopped by the PAA senior unsecured revolving credit facility and the PAA senior secured hedged inventory facility, which mature in August 2019 and August 2017, respectively; as such, any borrowings under the PAA commercial paper program effectively reduce the available capacity under these facilities. At September 30, 2014 and December 31, 2013, we classified $423 million and approximately $1.1 billion, respectively, of borrowings under the PAA commercial paper program as short-term. These borrowings are primarily designated as working capital borrowings, must be repaid within one year and are primarily for hedged NGL and crude oil inventory and NYMEX and ICE margin deposits. (2) In September 2014, AAP extended the maturity dates of its term loan and senior secured revolving credit facility. See “Credit Facilities” below for further discussion. (3) PAA’s fixed-rate senior notes (including current maturities) had a face value of approximately $8.2 billion and $6.7 billion at September 30, 2014 and December 31, 2013, respectively. We estimated the aggregate fair value of these notes as of September 30, 2014 and December 31, 2013 to be approximately $8.8 billion and $7.2 billion, respectively. PAA’s fixed-rate senior notes are traded among institutions, and these trades are routinely published by a reporting service. Our determination of fair value is based on reported trading activity near quarter end. We estimate that the carrying value of outstanding borrowings under the credit facilities and the PAA commercial paper program approximates fair value as interest rates reflect current market rates. The fair value estimates for the PAA senior notes, the credit facilities and the PAA commercial paper program are based upon observable market data and are classified within Level 2 of the fair value hierarchy. See Note 10 for additional discussion of the fair value hierarchy. Credit Facilities In August 2014, PAA extended the maturity dates of its senior secured hedged inventory facility and senior unsecured revolving credit facility by one year through the exercise of the option included in the current credit agreements. The PAA senior secured hedged inventory facility and the PAA senior unsecured revolving credit facility now mature in August 2017 and August 2019, respectively. In September 2014, AAP extended the maturity dates of its term loan and senior secured revolving credit facility by one year through the exercise of the option included in the current credit agreement. The AAP term loan and AAP senior secured revolving credit facility now mature in September 2019. Borrowings and Repayments Total borrowings under credit agreements and the PAA commercial paper program for the nine months ended September 30, 2014 and 2013 were approximately $55.7 billion and $13.2 billion, respectively. Total repayments under credit agreements and the PAA commercial paper program for the nine months ended September 30, 2014 and 2013 were approximately $56.3 billion and $13.4 billion, respectively. The variance in total gross borrowings and repayments is impacted by various business and financial factors including, but not limited to, the timing, average term and method of general partnership borrowing activities. Letters of Credit In connection with our supply and logistics activities, we provide certain suppliers with irrevocable standby letters of credit to secure our obligation for the purchase of crude oil, NGL and natural gas. Additionally, we issue letters of credit to support insurance programs and construction activities. At September 30, 2014 and December 31, 2013 we had outstanding letters of credit of $66 million and $41 million, respectively. PAA Senior Notes Issuances On April 23, 2014, PAA completed the issuance of $700 million, 4.70% senior notes due 2044 at a public offering price of 99.734%. Interest payments are due on June 15 and December 15 of each year, commencing on December 15, 2014. In anticipation of the issuance of these senior notes, PAA entered into $250 million notional principal amount of U.S. treasury locks in March and April 2014 to hedge the treasury rate portion of the interest rate on a portion of the notes. PAA terminated these treasury locks in April 2014. See Note 10 for additional disclosure. On September 9, 2014, PAA completed the issuance of $750 million, 3.60% senior notes due 2024 at a public offering price of 99.842%. Interest payments are due on May 1 and November 1 of each year, commencing on May 1, 2015. PAA Commercial Paper Program Effective October 20, 2014, the maximum aggregate borrowing capacity under the PAA commercial paper program was increased from $1.5 billion to $3.0 billion.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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