Debt

At March 31, 2014 and December 31, 2013, our debt was as follows (in millions):



	March 31, 2014		December 31, 2013
First Lien Notes	$	4,989	$	4,989
First Lien Term Loans	2,821		2,828
Project financing, notes payable and other	1,865		1,901
CCFC Term Loans	1,607		1,191
Capital lease obligations	193		203
Subtotal	11,475		11,112
Less: Current maturities	189		204
Total long-term debt	$	11,286	$	10,908

Our effective interest rate on our consolidated debt, excluding the impacts of capitalized interest and unrealized gains (losses) on interest rate swaps, decreased to 6.2% for the three months ended March 31, 2014, from 7.0% for the three months ended March 31, 2013. The issuance of our CCFC Term Loans, 2022 First Lien Notes, 2024 First Lien Notes and 2020 First Lien Term Loan in 2013 allowed us to reduce our overall cost of debt by replacing our CCFC Notes and a portion of our First Lien Notes with debt carrying lower interest rates.

First Lien Notes

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



	March 31, 2014		December 31, 2013
2019 First Lien Notes	$	320	$	320
2020 First Lien Notes	875		875
2021 First Lien Notes	1,600		1,600
2022 First Lien Notes	744		744
2023 First Lien Notes	960		960
2024 First Lien Notes	490		490
Total First Lien Notes	$	4,989	$	4,989

First Lien Term Loans

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



	March 31, 2014		December 31, 2013
2018 First Lien Term Loans	$	1,610	$	1,614
2019 First Lien Term Loan	822		824
2020 First Lien Term Loan	389		390
Total First Lien Term Loans	$	2,821	$	2,828

CCFC Term Loans

In February 2014, we executed an amendment to the credit agreement associated with the CCFC Term Loans, which allowed us to issue $425 million in incremental CCFC Term Loans to fund a portion of the purchase price paid in connection with the closing of our acquisition of Guadalupe Energy Center on February 26, 2014. Guadalupe Energy Center was purchased by Calpine Guadalupe GP, LLC, a wholly-owned subsidiary of CCFC. The incremental term loans carry substantially the same terms and conditions as the $300 million in aggregate principal amount of CCFC Term Loans issued in June 2013. The incremental term loans were offered to investors at an issue price equal to 98.75% of face value.

Corporate Revolving Facility and Other Letters of Credit Facilities

The table below represents amounts issued under our letter of credit facilities at March 31, 2014 and December 31, 2013 (in millions):



	March 31, 2014		December 31, 2013
Corporate Revolving Facility⁽¹⁾	$	239	$	242
CDHI	240		218
Various project financing facilities	170		170
Total	$	649	$	630

____________


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

CDHI

During the first quarter of 2014, we amended our CDHI letter of credit facility to lower our fees and extend the maturity to January 2, 2018.

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, 2014 and December 31, 2013 (in millions):



	March 31, 2014				December 31, 2013
	Fair Value		Carrying Value		Fair Value		Carrying Value
First Lien Notes	$	5,418	$	4,989	$	5,317	$	4,989
First Lien Term Loans	2,826		2,821		2,845		2,828
Project financing, notes payable and other⁽¹⁾	1,751		1,743		1,772		1,766
CCFC Term Loans	1,590		1,607		1,179		1,191
Total	$	11,585	$	11,160	$	11,113	$	10,774

____________


(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 Term Loans 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.