Debt
Long-term debt at December 31 was:
|
| | | | | | |
| Millions of Dollars |
| 2013 |
| | 2012 |
|
| | | |
1.95% Senior Notes due 2015 | $ | 800 |
| | 800 |
|
2.95% Senior Notes due 2017 | 1,500 |
| | 1,500 |
|
4.30% Senior Notes due 2022 | 2,000 |
| | 2,000 |
|
5.875% Senior Notes due 2042 | 1,500 |
| | 1,500 |
|
Industrial Development Bonds due 2018 through 2021 at 0.05%-0.07% at year-end 2013 and 0.09%–0.23% at year-end 2012 | 50 |
| | 50 |
|
Term loan due 2014 through 2015 at 1.465% at year-end 2012 | — |
| | 1,000 |
|
Note payable to Merey Sweeny, L.P. due 2020 at 7% (related party) | 110 |
| | 122 |
|
Other | 1 |
| | 1 |
|
Debt at face value | 5,961 |
| | 6,973 |
|
Capitalized leases | 199 |
| | 6 |
|
Net unamortized premiums and discounts | (5 | ) | | (5 | ) |
Total debt | 6,155 |
| | 6,974 |
|
Short-term debt | (24 | ) | | (13 | ) |
Long-term debt | $ | 6,131 |
| | 6,961 |
|
Maturities of long-term borrowings, inclusive of net unamortized premiums and discounts, in 2014 through 2018 are: $24 million, $823 million, $23 million, $1,525 million and $37 million, respectively.
We had no material scheduled debt maturities in 2013; however, in 2013, we prepaid the $1 billion outstanding balance on our term loan. During 2013, we entered into a capital lease which resulted in $189 million of debt being included on the balance sheet at December 31, 2013. For additional information on our capital leases, see Note 18—Leases.
Credit Facilities
During the second quarter of 2013, we amended our revolving credit agreement by entering into the First Amendment to Credit Agreement (Amendment). The Amendment increased the borrowing capacity from $4.0 billion to $4.5 billion, extended the maturity from February 2017 to June 2018, reduced the margin applied to interest and fees accruing on and after the Amendment effective date, and made certain amendments with respect to Phillips 66 Partners LP. No amount has been drawn under this facility. However, as of December 31, 2013, $51 million in letters of credit had been issued that were supported by this facility.
The revolving credit agreement contains covenants that we consider usual and customary for an agreement of this type for comparable commercial borrowers, including a maximum consolidated net debt-to-capitalization ratio of 60 percent. The agreement has customary events of default, such as nonpayment of principal when due; nonpayment of interest, fees or other amounts; violation of covenants; cross-payment default and cross-acceleration (in each case, to indebtedness in excess of a threshold amount); and a change of control.
Borrowings under the credit agreement will incur interest at the London Interbank Offered Rate (LIBOR) plus a margin based on the credit rating of our senior unsecured long-term debt as determined from time to time by Standard & Poor's Ratings Services and Moody's Investors Service. The revolving credit agreement also provides for customary fees, including administrative agent fees and commitment fees.
On June 7, 2013, Phillips 66 Partners entered into a senior unsecured $250 million revolving credit agreement (Revolver) with a syndicate of financial institutions, which became effective upon its initial public offering of common units on July 26, 2013. Phillips 66 Partners has the option to increase the overall capacity of the Revolver by up to an additional $250 million, subject to certain conditions. The Revolver has an initial term of five years. As of December 31, 2013, no amount had been drawn under this facility.
Trade Receivables Securitization Facility
During the second quarter of 2013, we amended our trade receivables securitization facility by entering into the First Amendment to Receivables Purchase Agreement (Securitization Amendment). The Securitization Amendment decreased the borrowing capacity from $1.2 billion to $696 million and made certain amendments with respect to Phillips 66 Partners. As of December 31, 2013, no amount had been drawn under the facility, but $26 million in letters of credit had been issued that were collateralized by trade receivables held by the subsidiary under this facility.
