v3.7.0.1

Debt

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Debt

Debt

Our debt at March 31, 2017 and December 31, 2016, was as follows (in millions):

	March 31, 2017				December 31, 2016
Senior Unsecured Notes	$	3,413			$	3,412
First Lien Term Loans	3,405				3,165
First Lien Notes	1,841				2,290
Project financing, notes payable and other	1,561				1,597
CCFC Term Loans	1,550				1,553
Capital lease obligations	157				162
Corporate Revolving Facility	25				—
Subtotal	11,952				12,179
Less: Current maturities	608				748
Total long-term debt	$	11,344			$	11,431

Our effective interest rate on our consolidated debt, excluding the effects of capitalized interest and mark-to-market gains (losses) on interest rate hedging instruments, decreased to 5.4% for the three months ended March 31, 2017, from 5.5% for the same period in 2016. The issuance of our 2019 First Lien Term Loan in February 2017 and a portion of our 2023 First Lien Term Loans in May 2016 allowed us to reduce our overall cost of debt by replacing a portion of our First Lien Notes and 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):

	March 31, 2017				December 31, 2016
2023 Senior Unsecured Notes	$	1,237			$	1,237
2024 Senior Unsecured Notes	643				643
2025 Senior Unsecured Notes	1,533				1,532
Total Senior Unsecured Notes	$	3,413			$	3,412

First Lien Term Loans

The amounts outstanding under our senior secured First Lien Term Loans are summarized in the table below (in millions):

	March 31, 2017				December 31, 2016
2017 First Lien Term Loan(1)	$	393			$	537
2019 First Lien Term Loan	389				—
2023 First Lien Term Loans	1,070				1,071
2024 First Lien Term Loan	1,553				1,557
Total First Lien Term Loans	$	3,405			$	3,165

____________

(1) On March 16, 2017, we used cash on hand to repay $150 million of our outstanding 2017 First Lien Term Loan. During the first quarter of 2017, we recorded approximately $3 million in debt extinguishment costs related to the partial repayment of our 2017 First Lien Term Loan.

On February 3, 2017, we entered into a $400 million first lien senior secured term loan which bears interest, at our option, at either (i) the Base Rate, equal to the highest of (a) the Federal Funds Effective Rate plus 0.5% 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 2019 First Lien Term Loan credit agreement), plus an applicable margin of 0.75%, or (ii) LIBOR plus 1.75% per annum (with no LIBOR floor) and matures on December 31, 2019. An aggregate amount equal to 0.25% of the aggregate principal amount of the 2019 First Lien Term Loans is payable at the end of each quarter (beginning with the quarter ending June 2017) with the remaining balance payable on the maturity date. We paid an upfront fee of an amount equal to 1.0% of the aggregate principal amount of the 2019 First Lien Term Loan, which is structured as original issue discount and recorded approximately $8 million in debt issuance costs during the first quarter of 2017 related to the issuance of our 2019 First Lien Term Loan. The 2019 First Lien Term Loan contains substantially similar covenants, qualifications, exceptions and limitations as our First Lien Term Loans and First Lien Notes. We used the proceeds from the 2019 First Lien Term Loan, together with cash on hand, to redeem the remaining 2023 First Lien Notes.

First Lien Notes

The amounts outstanding under our senior secured First Lien Notes are summarized in the table below (in millions):

	March 31, 2017				December 31, 2016
2022 First Lien Notes	$	739			$	739
2023 First Lien Notes(1)	—				450
2024 First Lien Notes	485				485
2026 First Lien Notes	617				616
Total First Lien Notes	$	1,841			$	2,290

____________

(1) On March 6, 2017, we used cash on hand along with the proceeds from our 2019 First Lien Term Loan to redeem the remaining $453 million of our 2023 First Lien Notes, plus accrued and unpaid interest. During the first quarter of 2017, we recorded approximately $21 million in debt extinguishment costs related to the redemption of our 2023 First Lien Notes.

Corporate Revolving Facility and Other Letter of Credit Facilities

The table below represents amounts issued under our letter of credit facilities at March 31, 2017 and December 31, 2016 (in millions):

	March 31, 2017				December 31, 2016
Corporate Revolving Facility(1)	$	471			$	535
CDHI	237				250
Various project financing facilities	183				206
Total	$	891			$	991

____________

(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 March 31, 2017 and December 31, 2016 (in millions):

	March 31, 2017								December 31, 2016
	Fair Value				Carrying Value				Fair Value				Carrying Value
Senior Unsecured Notes	$	3,435			$	3,413			$	3,343			$	3,412
First Lien Term Loans	3,480				3,405				3,244				3,165
First Lien Notes	1,931				1,841				2,349				2,290
Project financing, notes payable and other(1)	1,505				1,469				1,543				1,506
CCFC Term Loans	1,567				1,550				1,567				1,553
Corporate Revolving Facility	25				25				—				—
Total	$	11,943			$	11,703			$	12,046			$	11,926

____________

(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.

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- References

No definition available.

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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 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

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