Maturities of long-term borrowings, inclusive of net unamortized premiums and discounts, in 2007 through 2011 are: $1,608 million, $108 million, $1,611 million, $1,482 million and $8,223 million, respectively. At year-end 2006, notes payable and long-term debt due within one year was $4,043 million, which includes the maturities of $1,608 million in 2007, shown above, and $2,435 million reflecting our intent, based on prevailing commodity price levels, to further reduce debt during 2007.
The $14.6 billion increase in our debt balance from year-end 2005 reflects debt issuances of $15.3 billion related to the March 31, 2006, acquisition of Burlington Resources and the assumption of $4.3 billion of Burlington Resources debt, including the recognition of an increase of $406 million to record the debt at its fair value. These increases were partly offset by debt reductions during the year.
In March 2006, we closed on two $7.5 billion bridge facilities with a group of five banks to help fund the Burlington Resources acquisition. These bridge financings were both 364-day loan facilities with pricing and terms similar to our existing revolving credit facilities. These facilities were fully drawn in the funding of the acquisition.
In April 2006, we entered into and funded a $5 billion five-year term loan, closed on a $2.5 billion five-year revolving credit facility, increased the ConocoPhillips commercial paper program to $7.5 billion, and issued $3 billion of debt securities. The term loan and new credit facility were broadly syndicated among financial institutions with terms and pricing provisions similar to our other existing revolving credit facilities. The proceeds from the term loan, debt securities and issuances of commercial paper, together with our cash balances and cash provided from operations, were used to repay the $15 billion bridge facilities during the second and third quarters of 2006.
The $3 billion of debt securities were issued in early April 2006. Of this issuance, $1 billion of Floating Rate Notes due April 11, 2007, were issued by ConocoPhillips, and $1.25 billion of Floating Rate Notes due April 9, 2009, and $750 million of 5.50% Notes due 2013, were issued by ConocoPhillips Australia Funding Company, a wholly owned subsidiary. ConocoPhillips and ConocoPhillips Company guarantee the obligations of ConocoPhillips Australia Funding Company.
At December 31, 2006, we had two revolving credit facilities totaling $5 billion that expire in October 2011. Also, we have a $2.5 billion revolving credit facility that expires in April 2011, for which we recently requested an extension of one year in accordance with terms of the facility. These facilities may be used as direct bank borrowings, as support for the ConocoPhillips $7.5 billion commercial paper program, as support for the ConocoPhillips Qatar Funding Ltd. $1.5 billion commercial paper program, or as support for issuances of letters of credit totaling up to $750 million. The facilities are broadly syndicated among financial institutions and do not contain any material adverse change provisions or covenants requiring maintenance of specified financial ratios or ratings. The credit facilities contain a cross-default provision relating to our, or any of our consolidated subsidiaries’, failure to pay principal or interest on other debt obligations of $200 million or more. At December 31, 2006 and 2005, we had no outstanding borrowings under these credit facilities, but $41 million and $62 million, respectively, in letters of credit had been issued. Under both commercial paper programs there was $2,931 million of commercial paper outstanding at December 31, 2006, compared with $32 million at December 31, 2005. The increase in commercial paper resulted from using it to help repay the bridge facilities discussed above.
Credit facility borrowings may bear interest at a margin above rates offered by certain designated banks in the London interbank market or at a margin above the overnight federal funds rate or prime rates offered by certain designated banks in the United States. The agreements call for commitment fees on available, but unused, amounts. The agreements also contain early termination rights if our current directors or their approved successors cease to be a majority of the Board of Directors.
In May 2006, we redeemed our $240 million 7.625% Notes upon their maturity. We also redeemed our $129 million 6.60% Notes due in 2007 (part of the debt assumed in the Burlington Resources acquisition), at a premium of $4 million, plus accrued interest.
In October 2006, we redeemed our $1.25 billion 5.45% Notes upon their maturity. In addition, we redeemed our $500 million 5.60% Notes due December 2006, and our $350 million 5.70% Notes due March 2007 (both issues were a part of the debt assumed in the Burlington Resources acquisition), at a premium of $1 million, plus accrued interest. In order to finance the maturity and call of the above notes, ConocoPhillips Canada Funding Company I, a wholly owned subsidiary, issued $1.25 billion of 5.625% Notes due 2016, and ConocoPhillips Canada Funding Company II, a wholly owned subsidiary, issued $500 million of 5.95% Notes due 2036, and $350 million of 5.30% Notes due 2012. ConocoPhillips and ConocoPhillips Company guarantee the obligations of ConocoPhillips Canada Funding Company I and ConocoPhillips Canada Funding Company II.
In December 2006, we terminated the lease of certain refining assets which we consolidated due to our designation as the primary beneficiary of the lease entity. As part of the termination, we exercised a purchase option of the assets totaling $111 million and retired the related debt obligations
of $104 million 5.847% Notes due 2006. An associated interest rate swap was also liquidated.
At December 31, 2006, $203 million was outstanding under the ConocoPhillips Savings Plan term loan, which requires repayment in semi-annual installments beginning in 2011 and continuing through 2015. Under this loan, any participating bank in the syndicate of lenders may cease to participate on December 4, 2009, by giving not less than 180 days’ prior notice to the ConocoPhillips Savings Plan and the company. Each bank participating in the ConocoPhillips Savings Plan loan has the optional right, if our current directors or their approved successors cease to be a majority of the Board of Directors, and upon not less than 90 days’ notice, to cease to participate in the loan. Under the above conditions, we are required to purchase such bank’s rights and obligations under the loan agreement if they are not transferred to another bank of our choice. See Note 23 — Employee Benefit Plans, for additional discussion of the ConocoPhillips Savings Plan.
At December 31, 2006, Phillips 66 Capital II (Trust II) had outstanding $350 million of 8% Capital Securities (Capital Securities). The sole asset of Trust II was $361 million of the company’s 8% Junior Subordinated Deferrable Interest Debentures due 2037 (Subordinated Debt Securities II). The Subordinated Debt Securities II were due January 15, 2037, and were redeemable in whole, or in part, at our option on or after January 15, 2007, at 103.94 percent declining annually until January 15, 2017, when they could be called at par, $1,000 per share, plus accrued and unpaid interest. Upon the redemption of the Subordinated Debt Securities II, Trust II is required to apply all redemption proceeds to the immediate redemption of the Capital Securities. Effective January 15, 2007, we redeemed the Subordinated Debt Securities II at a premium of $14 million, plus accrued interest, resulting in the immediate redemption of the Capital Securities.
Under the provisions of revised FASB Interpretation No. 46, “Consolidation of Variable Interest Entities” (FIN 46 (R)), Trust II, a variable interest entity, was not consolidated in our financial statements because we were not the primary beneficiary. However, the Subordinated Debt Securities II ($361 million) was included on our consolidated balance sheet in “Notes payable and long-term debt due within one year” at December 31, 2006, and in “Long-term debt” at December 31, 2005.
Also, in January 2007, we redeemed our $153 million 7.25% Notes upon their maturity, and in February 2007, we reduced our Floating Rate Five-Year Term Note due 2011 from $5 billion to $4 billion.
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