Long-term Debt | Long-term debt consisted of the following at March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 (in thousands) Tallgrass Equity revolving credit facility $ 124,000 $ 146,000 TEP revolving credit facility 816,000 661,000 TEP 5.50% senior notes due September 15, 2024 750,000 750,000 TEP 5.50% senior notes due January 15, 2028 750,000 750,000 Less: Deferred financing costs, net (1) (17,628 ) (17,737 ) Plus: Unamortized premium on 2028 Notes 3,642 3,730 Total long-term debt, net $ 2,426,014 $ 2,292,993 (1) Deferred financing costs, net as presented above relate solely to the 2024 and 2028 Notes. Deferred financing costs associated with our revolving credit facilities are presented in noncurrent assets on our condensed consolidated balance sheets. TEP Senior Unsecured Notes due 2028 On September 15, 2017, TEP and Tallgrass Energy Finance Corp. (the "Co-Issuer" and together with TEP, the "Issuers"), the Guarantors named therein and U.S. Bank, National Association, as trustee, entered into an Indenture dated September 15, 2017 (the "2028 Indenture") pursuant to which the Issuers issued $500 million in aggregate principal amount of 5.50% senior notes due 2028 (the "2028 Notes"). On December 11, 2017, the Issuers issued an additional $250 million in aggregate principal amount of the 2028 Notes, which are also governed by the 2028 Indenture. The notes issued on September 15, 2017 and December 11, 2017 are treated as a single class of debt securities and have identical terms, other than the issue date and offering price. The 2028 Indenture contains covenants that, among other things, limit TEP's ability and the ability of its restricted subsidiaries to: (i) create liens to secure indebtedness; (ii) enter into sale-leaseback transactions; and (iii) consolidate with or merge with or into, or sell substantially all TEP’s properties to, another person. As of March 31, 2018 , TEP was in compliance with the covenants required under the 2028 Notes. TEP Senior Unsecured Notes due 2024 On September 1, 2016, the Issuers, the Guarantors named therein and U.S. Bank, National Association, as trustee, entered into an Indenture dated September 1, 2016 (the "2024 Indenture"), pursuant to which the Issuers issued $400 million in aggregate principal amount of 5.50% senior notes due 2024 (the "2024 Notes"). On May 16, 2017, the Issuers issued an additional $350 million in aggregate principal amount of the 2024 Notes which are also governed by the 2024 Indenture. The notes issued on September 1, 2016 and May 16, 2017 are treated as a single class of debt securities and have identical terms, other than the issue date, offering price and first interest payment date. The 2024 Indenture contains covenants that, among other things, limit TEP's ability and the ability of its restricted subsidiaries to: (i) incur, assume or guarantee additional indebtedness or issue preferred units; (ii) create liens to secure indebtedness; (iii) pay distributions on equity interests in the event of default or noncompliance with the covenants required, repurchase equity securities or redeem subordinated securities; (iv) make investments; (v) restrict distributions, loans or other asset transfers from TEP's restricted subsidiaries; (vi) consolidate with or merge with or into, or sell substantially all of TEP's properties to, another person; (vii) sell or otherwise dispose of assets, including equity interests in subsidiaries; and (viii) enter into transactions with affiliates. As of March 31, 2018 , TEP was in compliance with the covenants required under the 2024 Notes. Tallgrass Equity Revolving Credit Facility The following table sets forth the available borrowing capacity under the Tallgrass Equity revolving credit facility as of March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 (in thousands) Total capacity under the Tallgrass Equity revolving credit facility $ 150,000 $ 150,000 Less: Outstanding borrowings under the Tallgrass Equity revolving credit facility (124,000 ) (146,000 ) Available capacity under the Tallgrass Equity revolving credit facility $ 26,000 $ 4,000 In connection with the TEGP IPO, Tallgrass Equity entered into a $150 million senior secured revolving credit facility with Barclays Bank PLC, as administrative agent, and a syndicate of lenders, which will mature on May 12, 2020. Among various other covenants and restrictive provisions, Tallgrass Equity is required to maintain a total leverage ratio of not more than 3.00 to 1.00. As of March 31, 2018 , Tallgrass Equity was in compliance with the covenants required under the revolving credit facility. The unused portion of the revolving credit facility is subject to a commitment fee of 0.50% . As of March 31, 2018 , the weighted average interest rate on outstanding borrowings under the Tallgrass Equity revolving credit facility was 4.38% . During the three months ended March 31, 2018 , Tallgrass Equity's weighted average effective interest rate, including the interest on outstanding borrowings, commitment fees, and amortization of deferred financing costs, was 4.47% . TEP Revolving Credit Facility The following table sets forth the available borrowing capacity under the TEP revolving credit facility as of March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 (in thousands) Total capacity under the TEP revolving credit facility $ 1,750,000 $ 1,750,000 Less: Outstanding borrowings under the TEP revolving credit facility (816,000 ) (661,000 ) Less: Letters of credit issued under the TEP revolving credit facility (94 ) (94 ) Available capacity under the TEP revolving credit facility $ 933,906 $ 1,088,906 TEP's revolving credit facility contains various covenants and restrictive provisions that, among other things, limit or restrict TEP's ability (as well as the ability of its restricted subsidiaries) to incur or guarantee additional debt, incur certain liens on assets, dispose of assets, make certain distributions, including distributions from available cash, if a default or event of default under the credit agreement then exists or would result therefrom, change the nature of its business, engage in certain mergers or make certain investments and acquisitions, enter into non-arms-length transactions with affiliates and designate certain subsidiaries as "Unrestricted Subsidiaries." In addition, TEP is required to maintain a consolidated leverage ratio of not more than 5.00 to 1.00 (which will be increased to 5.50 to 1.00 for certain measurement periods following the consummation of certain acquisitions), a consolidated senior secured leverage ratio of not more than 3.75 to 1.00 and a consolidated interest coverage ratio of not less than 2.50 to 1.00. As of March 31, 2018 , TEP was in compliance with the covenants required under its revolving credit facility. The unused portion of TEP's revolving credit facility is subject to a commitment fee, which ranges from 0.250% to 0.500% , based on TEP's total leverage ratio. As of March 31, 2018 , the weighted average interest rate on outstanding borrowings under the TEP revolving credit facility was 3.27% . During the three months ended March 31, 2018 , the weighted average effective interest rate under the TEP revolving credit facility, including the interest on outstanding borrowings under TEP's revolving credit facility, commitment fees, and amortization of deferred financing costs, was 3.53% . Fair Value The following table sets forth the carrying amount and fair value of our long-term debt, which is not measured at fair value in the condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017 , but for which fair value is disclosed: Fair Value Quoted prices Significant Significant Total Carrying (in thousands) As of March 31, 2018: Revolving credit facilities $ — $ 940,000 $ — $ 940,000 $ 940,000 2024 Notes $ — $ 767,063 $ — $ 767,063 $ 740,202 2028 Notes $ — $ 754,425 $ — $ 754,425 $ 745,812 As of December 31, 2017: Revolving credit facilities $ — $ 807,000 $ — $ 807,000 $ 807,000 2024 Notes $ — $ 771,645 $ — $ 771,645 $ 739,824 2028 Notes $ — $ 758,168 $ — $ 758,168 $ 746,169 The long-term debt borrowed under the revolving credit facilities is carried at amortized cost. As of March 31, 2018 and December 31, 2017 , the fair value of borrowings under the revolving credit facilities approximates the carrying amount of the borrowings using a discounted cash flow analysis. The 2024 and 2028 Notes are carried at amortized cost, net of deferred financing costs. The estimated fair value of the 2024 and 2028 Notes is based upon quoted market prices adjusted for illiquid markets. We are not aware of any factors that would significantly affect the estimated fair value subsequent to March 31, 2018 . |