Debt

At March 31, 2013 and December 31, 2012, our debt was as follows (in millions):



	March 31, 2013		December 31, 2012
First Lien Notes	$	5,304	$	5,303
First Lien Term Loans	2,456		2,463
Project financing, notes payable and other	1,826		1,789
CCFC Notes	980		978
Capital lease obligations	211		217
Total debt	10,777		10,750
Less: Current maturities	144		115
Debt, net of current portion	$	10,633	$	10,635

Our annual effective interest rate on our consolidated debt, excluding the impacts of capitalized interest and unrealized gains (losses) on interest rate swaps, decreased to 7.0% for the three months ended March 31, 2013, from 7.4% for the three months ended March 31, 2012. The issuance of our 2019 First Lien Term Loan in October 2012 allowed us to reduce our overall cost of debt by replacing a portion of our First Lien Notes and variable rate project debt with a corporate level term loan carrying a lower variable interest rate. Also, in February 2013, we repriced our First Lien Term Loans by lowering the LIBOR floor by 0.25% to 1.0% and lowering the LIBOR margin by 0.25% to 3.0%.

First Lien Notes

Our First Lien Notes are summarized in the table below (in millions):



	March 31, 2013		December 31, 2012
2017 First Lien Notes	$	1,080	$	1,080
2019 First Lien Notes	360		360
2020 First Lien Notes	984		983
2021 First Lien Notes	1,800		1,800
2023 First Lien Notes	1,080		1,080
Total First Lien Notes	$	5,304	$	5,303

First Lien Term Loans

Our First Lien Term Loans are summarized in the table below (in millions):



	March 31, 2013		December 31, 2012
2018 First Lien Term Loans	$	1,625	$	1,630
2019 First Lien Term Loan	831		833
Total First Lien Term Loans	$	2,456	$	2,463

CCFC Refinancing

On April 22, 2013, we announced that CCFC, our indirect, wholly-owned subsidiary, is pursuing a potential debt refinancing whereby CCFC will enter into a new senior secured term loan and the funds will be used to repay the CCFC Notes. The timing, size and terms of any potential refinancing and the use of proceeds thereof are subject to market and other conditions and we make no assurance that such actions will take place.

Corporate Revolving Facility and Other Letters of Credit Facilities

The table below represents amounts issued under our letter of credit facilities at March 31, 2013 and December 31, 2012 (in millions):



	March 31, 2013		December 31, 2012
Corporate Revolving Facility⁽¹⁾	$	222	$	243
CDHI	250		253
Various project financing facilities	131		130
Total	$	603	$	626

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(1)	The Corporate Revolving Facility represents our primary revolving facility.

CDHI

We have a $300 million letter of credit facility related to CDHI. As a result of the completion of the sale of Riverside Energy Center, LLC, a wholly-owned subsidiary of CDHI, on December 31, 2012, we are required to cash collateralize letters of credit issued in excess of $225 million until replacement collateral is contributed to the CDHI collateral package, which we are in the process of arranging. At March 31, 2013, we had $25 million in outstanding letters of credit issued in excess of $225 million under our CDHI letter of credit facility that were collateralized by cash. We do not expect this change to have a material impact on our liquidity.

Fair Value of Debt

We record our debt instruments based on contractual terms, net of any applicable premium or discount. We did not elect to apply the alternative U.S. GAAP provisions of the fair value option for recording financial assets and financial liabilities. The following table details the fair values and carrying values of our debt instruments at March 31, 2013 and December 31, 2012 (in millions):



	March 31, 2013				December 31, 2012
	Fair Value		Carrying Value		Fair Value		Carrying Value
First Lien Notes	$	5,801	$	5,304	$	5,863	$	5,303
First Lien Term Loans	2,486		2,456		2,489		2,463
Project financing, notes payable and other⁽¹⁾	1,661		1,691		1,599		1,629
CCFC Notes	1,050		980		1,075		978
Total	$	10,998	$	10,431	$	11,026	$	10,373

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(1)	Excludes a lease that is accounted for as a failed sale-leaseback transaction under U.S. GAAP.

We measure the fair value of our First Lien Notes, First Lien Term Loans and CCFC Notes using market information, including quoted market prices or dealer quotes for the identical liability when traded as an asset (categorized as level 2). We measure the fair value of our project financing, notes payable and other debt instruments using discounted cash flow analyses based on our current borrowing rates for similar types of borrowing arrangements (categorized as level 3). We do not have any debt instruments with fair value measurements categorized as level 1 within the fair value hierarchy.