Energy Transfer 2010 Annual Report Download - page 81

Description of Indebtedness
Our outstanding consolidated indebtedness was as follows (in thousands):
December 31,
2010 2009
ETP Senior Notes $ 5,050,000 $ 5,050,000
Transwestern Senior Unsecured Notes 870,000 870,000
HOLP Senior Secured Notes 103,127 140,512
Revolving credit facilities 402,327 160,000
Other long-term debt 9,541 10,122
Unamortized discounts (12,074) (12,829)
Fair value adjustments related to interest rate swaps 17,260 —
Total debt $ 6,440,181 $ 6,217,805
The terms of our consolidated indebtedness and that of our Operating Companies are described in more detail
below and in Note 6 to our consolidated financial statements.
Revolving Credit Facilities
ETP Credit Facility
The ETP Credit Facility provides for $2.0 billion of revolving credit capacity that is expandable to $3.0 billion
(subject to obtaining the approval of the administrative agent and securing lender commitments for the increased
borrowing capacity) under the credit agreement that governs the ETP Credit Facility. The ETP Credit Facility
matures on July 20, 2012, unless we elect the option of one-year extensions (subject to the approval of each such
extension by the lenders holding a majority of the aggregate lending commitments). Amounts borrowed under
the ETP Credit Facility bear interest, at our option, at a Eurodollar rate plus an applicable margin or a base rate.
The base rate used to calculate interest on base rate loans will be calculated using the greater of a prime rate or a
federal funds effective rate plus 0.50%. The applicable margin for Eurodollar loans ranges from 0.30% to 0.70%
based upon ETP’s credit rating and is currently 0.55% (0.60% if facility usage exceeds 50%). The commitment
fee payable on the unused portion of the ETP Credit Facility varies based on our credit rating with a maximum
fee of 0.125%. The fee is 0.11% based on our current rating.
We use the ETP Credit Facility to provide temporary financing for our growth projects, as well as for general
partnership purposes. We typically repay amounts outstanding under the ETP Credit Facility with proceeds from
common unit offerings or long-term notes offerings. The timing of borrowings depends on the Partnership’s
activities and the cash available to fund those activities. The repayments of amounts outstanding under the ETP
Credit Facility depend on multiple factors, including market conditions and expectations of future working
capital needs, and ultimately are a financing decision made by management. Therefore, the balance outstanding
under the ETP Credit Facility may vary significantly between periods. We do not believe that such fluctuations
indicate a significant change in our liquidity position, because we expect to continue to be able to repay amounts
outstanding under the ETP Credit Facility with proceeds from common unit offerings or long-term note
offerings.
As of December 31, 2010, there was a balance of $402.3 million outstanding on the ETP Credit Facility and
taking into account letters of credit of approximately $25.5 million, $1.57 billion was available for future
borrowings. The weighted average interest rate on the total amount outstanding as of December 31, 2010 was
0.84%.
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