Debt

Our debt at September 30, 2015 and December 31, 2014, was as follows (in millions):



	September 30, 2015		December 31, 2014
Senior Unsecured Notes	$	3,450	$	2,800
First Lien Term Loans	2,780		2,799
First Lien Notes	1,928		2,075
Project financing, notes payable and other	1,720		1,810
CCFC Term Loans	1,585		1,596
Capital lease obligations	201		202
Subtotal	11,664		11,282
Less: Current maturities	199		199
Total long-term debt	$	11,465	$	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 5.4% for the nine months ended September 30, 2015, from 6.0% 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):



	September 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):



	September 30, 2015		December 31, 2014
2018 First Lien Term Loans	$	—	$	1,597
2019 First Lien Term Loan	810		816
2020 First Lien Term Loan	383		386
2022 First Lien Term Loan	1,587		—
Total First Lien Term Loans	$	2,780	$	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):



	September 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

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(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 September 30, 2015 and December 31, 2014 (in millions):



	September 30, 2015		December 31, 2014
Corporate Revolving Facility⁽¹⁾	$	170	$	223
CDHI	238		214
Various project financing facilities	239		207
Total	$	647	$	644

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(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 September 30, 2015 and December 31, 2014 (in millions):



	September 30, 2015				December 31, 2014
	Fair Value		Carrying Value		Fair Value		Carrying Value
Senior Unsecured Notes	$	3,188	$	3,450	$	2,832	$	2,800
First Lien Term Loans	2,755		2,780		2,769		2,799
First Lien Notes	2,023		1,928		2,247		2,075
Project financing, notes payable and other⁽¹⁾	1,643		1,613		1,734		1,688
CCFC Term Loans	1,548		1,585		1,540		1,596
Total	$	11,157	$	11,356	$	11,122	$	10,958

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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 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.