Notes

Notes

1. Description of TransCanada's Business
2. Accounting Policies
3. Accounting Changes
4. Segmented Information
5. Plant, Property and Equipment
6. Goodwill
7. Intangibles and Other Assets
8. Joint Venture Investments
9. Acquisitions and Dispositions
10. Long-Term Debt
11. Long-Term Debt of Joint Ventures
12. Junior Subordinated Notes
13. Deferred Amounts
14. Rate Regulated Businesses
15. Non-Controlling Interests
16. Common Shares
17. Preferred Shares
18. Risk Management and Financial Instruments
19. Income Taxes
20. Notes Payable
21. Asset Retirement Obligations
22. Employee Future Benefits
23. Changes In Operating Working Capital
24. Commitments, Contingencies and Guarantees
25. Subsequent Events

Note 10: Long-Term Debt

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    2009 2008
Outstanding loan amounts
(millions of dollars)
Maturity Dates Outstanding December 31 Interest Rate(1) Outstanding December 31 Interest Rate(1)
TRANSCANADA PIPELINES LIMITED          
Debentures          
Canadian dollars
2010 to 2020 1,002 10.9% 1,251 10.8%
U.S. dollars (2009 and 2008 — US$600)(2)
2012 to 2021 626 9.5% 734 9.5%
Medium-Term Notes          
Canadian dollars(3)
2011 to 2039 4,148 6.2% 3,653 5.3%
Senior Unsecured Notes          
U.S. dollars (2009 — US$6,496; 2008 — US$4,723)(4)
2010 to 2039 6,727 6.7% 5,751 6.3%
    12,503   11,389  
           
NOVA GAS TRANSMISSION LTD.          
Debentures and Notes          
Canadian dollars
2010 to 2024 430 11.5% 439 11.5%
U.S. dollars (2009 and 2008 — US$375)
2012 to 2023 390 8.2% 457 8.2%
Medium-Term Notes          
Canadian dollars
2025 to 2030 502 7.4% 502 7.4%
U.S. dollars (2009 and 2008 — US$33)
2026 34 7.5% 39 7.5%
    1,356   1,437  
           
TRANSCANADA PIPELINE USA LTD.          
Bank Loan          
U.S. dollars (2009 and 2008 — US$700)
2012 733 0.5% 857 2.4%
           
ANR PIPELINE COMPANY          
Senior Unsecured Notes          
U.S. dollars (2009 — US$443; 2008 — US$444)
2010 to 2025 462 9.1% 541 9.1%
           
GAS TRANSMISSION NORTHWEST CORPORATION          
Senior Unsecured Notes          
U.S. Dollars (2009 and 2008 — US$400)
2010 to 2035 417 5.4% 488 5.4%
           
TC PIPELINES, LP          
Unsecured Loan          
U.S. dollars (2009 — US$484; 2008 — US$475)
2011 506 1.0% 580 2.7%
           
GREAT LAKES GAS TRANSMISSION LIMITED PARTNERSHIP          
Senior Unsecured Notes          
U.S. dollars (2009 — US$411; 2008 — US$430)
2011 to 2030 429 7.8% 526 7.8%
           
TUSCARORA GAS TRANSMISSION COMPANY          
Senior Unsecured Notes          
U.S. dollars (2009 — US$57; 2008 — US$64)
2010 to 2012 60 7.3% 78 7.4%
           
PORTLAND NATURAL GAS TRANSMISSION SYSTEM          
Senior Secured Notes(5)          
U.S. dollars (2009 — US$180; 2008 — US$196)
2018 186 6.1% 236 6.1%
           
OTHER          
Senior Notes          
U.S. dollars (2009 — US$12; 2008 — US$18)
2011 12 7.3% 22 7.3%
    16,664   16,154  
Less: Current Portion of Long-Term Debt   478   786  
    16,186   15,368  
(1) Interest rates are the effective interest rates except for those pertaining to long-term debt issued for the Company's regulated operations, in which case the weighted average interest rate is presented as required by the regulators. Weighted average and effective interest rates are stated as at the respective outstanding dates.
(2) Includes fair value adjustments for interest rate swap agreements on US$50 million of debt at December 31, 2008.
(3) Includes fair value adjustments for interest rate swap agreements on $50 million of debt at December 31, 2008.
(4) Includes fair value adjustments for interest rate swap agreements on US$250 million of debt at December 31, 2009 (2008 — US$150 million).
(5) Senior Secured Notes are secured by shipper transportation contracts, existing and new guarantees, letters of credit and collateral requirements.

Principal Repayments

Principal repayments on the long-term debt of the Company for the next five years are approximately as follows: 2010 — $478 million; 2011 — $923 million; 2012 — $1,176 million; 2013 — $911 million; and 2014 — $968 million.

Debt Shelf Programs — TransCanada PipeLines Limited

In December 2009, TransCanada PipeLines Limited (TCPL) filed a debt base shelf prospectus qualifying for the issuance of up to US$4.0 billion of debt securities in the U.S. This prospectus replaced the debt base shelf prospectus filed in January 2009, discussed below. No amounts have been issued under the December 2009 base shelf prospectus.

In April 2009, TCPL filed a $2.0 billion Canadian Medium-Term Notes base shelf prospectus to replace a March 2007 $1.5 billion Canadian Medium-Term Notes base shelf prospectus, which expired in April 2009. No amounts have been issued under the April 2009 base shelf prospectus.

In January 2009, TCPL filed a debt shelf prospectus in the U.S. qualifying for issuance of US$3.0 billion of debt securities. Subsequent to the January 2009 debt issue discussed below, the Company had US$1.0 billion of remaining capacity available under this debt shelf prospectus.

TransCanada PipeLines Limited

In February 2009, TCPL issued Medium-Term Notes of $300 million and $400 million maturing in February 2014 and February 2039, respectively, and bearing interest at 5.05 per cent and 8.05 per cent, respectively. These notes were issued by way of a pricing supplement under a Canadian $1.5 billion debt base shelf prospectus filed in March 2007.

In January 2009, TCPL issued Senior Unsecured Notes of US$750 million and US$1.25 billion maturing in January 2019 and January 2039, respectively, and bearing interest at 7.125 per cent and 7.625 per cent, respectively. These notes were issued by way of a prospectus supplement under the U.S. debt base shelf prospectus filed in January 2009.

In August 2008, TCPL issued $500 million of Medium-Term Notes maturing in August 2013 and bearing interest at 5.05 per cent by way of a pricing supplement under the Canadian debt base shelf prospectus filed in March 2007.

In August 2008, TCPL issued US$850 million and US$650 million of Senior Unsecured Notes maturing in August 2018 and August 2038, respectively, and bearing interest at 6.50 per cent and 7.25 per cent, respectively. These notes were issued by way of a prospectus supplement under a US$2.5 billion debt base shelf prospectus filed in September 2007, which was fully utilized following these issuances.

NOVA Gas Transmission Ltd.

Debentures issued by NOVA Gas Transmission Ltd. (NGTL) in the amount of $225 million have retraction provisions that entitle the holders to require redemption of up to eight per cent of the then outstanding principal plus accrued and unpaid interest on specified repayment dates. No redemptions were made to December 31, 2009.

TransCanada PipeLine USA Ltd.

TransCanada PipeLine USA Ltd. (TCPL USA) has a US$1.0 billion committed, unsecured, syndicated credit facility, guaranteed by TransCanada, consisting of a US$700 million five year term loan maturing in 2012 and a US$300 million, revolving facility maturing in February 2013 described further under Note 20. Included in Long-Term Debt was an outstanding balance of US$700 million on the term loan at December 31, 2009 and 2008.

TC PipeLines, LP

PipeLines LP has available a committed, unsecured syndicated revolving credit and term loan facility of US$725 million maturing December 2011, consisting of a US$475 million senior term loan and a US$250 million senior revolving credit facility. There was an outstanding balance of US$484 million and US$475 million on the credit facility at December 31, 2009 and 2008, respectively.

Interest Expense

Year ended December 31 (millions of dollars) 2009  2008  2007 
Interest on long-term debt 1,212  970  948 
Interest on junior subordinated notes 73  68  43 
Interest on short-term debt 10  32  48 
Capitalized interest (358) (141) (68)
Amortization and other financial charges(1) 17  14  (28)
  954  943  943 
(1) Amortization and other financial charges includes amortization of transaction costs and debt discounts calculated using the effective interest method.

The Company made interest payments of $916 million in 2009 (2008 — $833 million; 2007 — $966 million) net of interest capitalized on construction projects.