v3.2.0.727

Debt | 6 Months Ended
--- | ---
Jun. 30, 2015
Debt Disclosure [Abstract] |
Debt | Debt Our debt at June 30, 2015 and December 31, 2014, was as follows (in millions):
| June 30, 2015 |  | December 31, 2014
Senior Unsecured Notes | $ | 3,450 |  |  | $ | 2,800 |
First Lien Term Loans | 2,787 |  |  | 2,799 |
First Lien Notes | 1,928 |  |  | 2,075 |
Project financing, notes payable and other | 1,737 |  |  | 1,810 |
CCFC Term Loans | 1,588 |  |  | 1,596 |
Capital lease obligations | 201 |  |  | 202 |
Subtotal | 11,691 |  |  | 11,282 |
Less: Current maturities | 198 |  |  | 199 |
Total long-term debt | $ | 11,493 |  |  | $ | 11,083 |
Our effective interest rate on our consolidated debt, excluding the impacts of capitalized interest and mark-to-market gains (losses) on interest rate swaps, decreased to 5.5% for the six months ended June 30, 2015, from 6.1% for the same period in 2014. The issuance of our Senior Unsecured Notes in July 2014 and February 2015 and our 2022 First Lien Term Loan in May 2015 allowed us to reduce our overall cost of debt by replacing a portion of our First Lien Notes and all of our 2018 First Lien Term Loans with debt carrying lower interest rates. Senior Unsecured Notes The amounts outstanding under our Senior Unsecured Notes are summarized in the table below (in millions):
| June 30, 2015 |  | December 31, 2014
2023 Senior Unsecured Notes | $ | 1,250 |  |  | $ | 1,250 |
2024 Senior Unsecured Notes | 650 |  |  | — |
2025 Senior Unsecured Notes | 1,550 |  |  | 1,550 |
Total Senior Unsecured Notes | $ | 3,450 |  |  | $ | 2,800 |
In February 2015, we issued $650 million in aggregate principal amount of 5.5% senior unsecured notes due 2024 in a public offering. The 2024 Senior Unsecured Notes bear interest at 5.5% per annum with interest payable semi-annually on February 1 and August 1 of each year, beginning on August 1, 2015. The 2024 Senior Unsecured Notes were issued at par, mature on February 1, 2024 and contain substantially similar covenants, qualifications, exceptions and limitations as our 2023 Senior Unsecured Notes and 2025 Senior Unsecured Notes. We used the net proceeds received from the issuance of our 2024 Senior Unsecured Notes to replenish cash on hand used for the acquisition of Fore River Energy Center in the fourth quarter of 2014, to repurchase approximately $147 million of our 2023 First Lien Notes and for general corporate purposes. During the first quarter of 2015, we recorded approximately $9 million in deferred financing costs related to the issuance of our 2024 Senior Unsecured Notes and approximately $19 million in debt extinguishment costs related to the partial repurchase of our 2023 First Lien Notes. First Lien Term Loans The amounts outstanding under our First Lien Term Loans are summarized in the table below (in millions):
| June 30, 2015 |  | December 31, 2014
2018 First Lien Term Loans | $ | — |  |  | $ | 1,597 |
2019 First Lien Term Loan | 812 |  |  | 816 |
2020 First Lien Term Loan | 384 |  |  | 386 |
2022 First Lien Term Loan | 1,591 |  |  | — |
Total First Lien Term Loans | $ | 2,787 |  |  | $ | 2,799 |
On May 28, 2015, we entered into our $1.6 billion 2022 First Lien Term Loan. We used the net proceeds received, together with operating cash on hand, to repay the 2018 First Lien Term Loans. The 2022 First Lien Term Loan matures on May 27, 2022 and bears interest, at our option, at either (i) the base rate, equal to the highest of (a) the Federal Funds effective rate plus 0.50% per annum, (b) the Prime Rate or (c) the Eurodollar rate for a one month interest period plus 1.0% (in each case, as such terms are defined in the 2022 First Lien Term Loan credit agreement), plus an applicable margin of 1.75%, or (ii) LIBOR plus 2.75% per annum subject to a LIBOR floor of 0.75%. An aggregate amount equal to 0.25% of the aggregate principal amount of the 2022 First Lien Term Loan will be payable at the end of each quarter commencing in September 2015. The 2022 First Lien Term Loan contains substantially similar covenants, qualifications, exceptions and limitations as the First Lien Term Loans and First Lien Notes. We accounted for this transaction as a debt modification rather than an extinguishment of debt and, accordingly, did not record any debt extinguishment costs associated with the repayment of our 2018 First Lien Term Loans. However, in accordance with the accounting guidance for debt modification and extinguishment, we recorded approximately $13 million in debt modification costs associated with issuance costs and approximately $6 million in deferred financing costs related to the 2022 First Lien Term Loan during the second quarter of 2015. First Lien Notes The amounts outstanding under our First Lien Notes are summarized in the table below (in millions):
| June 30, 2015 |  | December 31, 2014
2022 First Lien Notes | $ | 745 |  |  | $ | 745 |
2023 First Lien Notes(1) | 693 |  |  | 840 |
2024 First Lien Notes | 490 |  |  | 490 |
Total First Lien Notes | $ | 1,928 |  |  | $ | 2,075 |
____________
(1) | On February 3, 2015, we repurchased approximately $147 million of our 2023 First Lien Notes with the proceeds from our 2024 Senior Unsecured Notes, as described in further detail above.
Corporate Revolving Facility and Other Letters of Credit Facilities The table below represents amounts issued under our letter of credit facilities at June 30, 2015 and December 31, 2014 (in millions):
| June 30, 2015 |  | December 31, 2014
Corporate Revolving Facility(1) | $ | 179 |  |  | $ | 223 |
CDHI | 244 |  |  | 214 |
Various project financing facilities | 219 |  |  | 207 |
Total | $ | 642 |  |  | $ | 644 |
____________
(1) | The Corporate Revolving Facility represents our primary revolving facility.
Fair Value of Debt We record our debt instruments based on contractual terms, net of any applicable premium or discount. The following table details the fair values and carrying values of our debt instruments at June 30, 2015 and December 31, 2014 (in millions):
| June 30, 2015 |  | December 31, 2014
| Fair Value |  | Carrying Value |  | Fair Value |  | Carrying Value
Senior Unsecured Notes | $ | 3,347 |  |  | $ | 3,450 |  |  | $ | 2,832 |  |  | $ | 2,800 |
First Lien Term Loans | 2,768 |  |  | 2,787 |  |  | 2,769 |  |  | 2,799 |
First Lien Notes | 2,059 |  |  | 1,928 |  |  | 2,247 |  |  | 2,075 |
Project financing, notes payable and other(1) | 1,660 |  |  | 1,629 |  |  | 1,734 |  |  | 1,688 |
CCFC Term Loans | 1,564 |  |  | 1,588 |  |  | 1,540 |  |  | 1,596 |
Total | $ | 11,398 |  |  | $ | 11,382 |  |  | $ | 11,122 |  |  | $ | 10,958 |
____________
(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 Senior Unsecured Notes, First Lien Term Loans, First Lien Notes 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.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 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
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration