NOTE 14—CORPORATE DEBT

Corporate debt at December 31, 2017 and 2016 is outlined in the following table (dollars in millions):



	Face Value		Discount			Net
December 31, 2017
Interest-bearing notes:
2.95% Notes, due 2022	$	600	$	(5	)	$	595
3.80% Notes, due 2027	400		(4		)	396
Total corporate debt	$	1,000	$	(9	)	$	991



December 31, 2016
Interest-bearing notes:
5.375% Notes, due 2022	$	540	$	(5	)	$	535
4.625% Notes, due 2023	460		(4		)	456
Total interest-bearing notes	1,000		(9		)	991
Non-interest-bearing debt:
0% Convertible debentures, due 2019	3		—			3
Total corporate debt	$	1,003	$	(9	)	$	994

Issuance of Corporate Debt

During the year ended December 31, 2017, the Company issued $1 billion in aggregate principal amount of Senior Notes in two tranches. The first tranche of $600 million aggregate principal amount of Senior Notes due 2022 bears interest at an annual rate of 2.95% and will mature on August 24, 2022. The second tranche of $400 million aggregate principal amount of Senior Notes due 2027 bears interest at an annual rate of 3.80% and will mature on August 24, 2027 (together with the first tranche, the “Notes”). The Notes are the Company's general unsecured senior obligations and rank equally with the Company's other unsecured senior indebtedness. The Notes effectively rank junior to secured indebtedness, if any, to the extent of the collateral securing such indebtedness and all liabilities of the Company's subsidiaries. The Notes are not guaranteed by the subsidiaries.

The net proceeds from the sale of the Notes were used, along with existing corporate cash, to redeem all $540 million aggregate principal amount of the outstanding 5.375% Senior Notes due 2022 and all $460 million aggregate principal amount of the outstanding 4.625% Senior Notes due 2023, including associated redemption premiums, accrued interest, and related fees and expenses. In connection with the redemption, the Company recognized a loss on early extinguishment of debt of $58 million.

During the year ended December 31, 2015, the Company used the net proceeds from the issuance of the $460 million aggregate principal amount of 4.625% Senior Notes due 2023, along with existing corporate cash to redeem all of its then outstanding 6.375% Notes, including associated redemption premiums, accrued interest, and related fees and expenses. This resulted in $73 million in losses on early extinguishment of debt for the year ended December 31, 2015.

Credit Facility

On June 23, 2017, the Company entered into an unsecured committed revolving credit facility with certain lenders, which replaced the previous secured committed revolving credit facility entered into in November 2014 and increased the Company's total borrowing capacity under the facility to $300 million. The Company has the ability to borrow against the credit facility for working capital and general corporate purposes. The credit facility has terms which include financial maintenance covenants, for which the Company was in compliance at December 31, 2017. The unsecured committed revolving credit facility will mature on June 23, 2020. At December 31, 2017, there was no outstanding balance under this revolving credit facility.

Ranking of Debt Seniority

All of the Company’s notes rank equal in right of payment with all of the Company’s existing and future unsubordinated indebtedness and rank senior in right of payment to all its existing and future subordinated indebtedness. However, the notes rank effectively junior to the Company's secured indebtedness to the extent of the collateral securing such indebtedness.