Debt and Other Financing Arrangements (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Summary of Long-term Debt Obligations

A summary of the Company's long-term debt obligations at September 30, 2020 and December 31, 2019 is set forth in the following table:

	September 30, 2020				December 31, 2019
	Principal		Carrying Amount (a)		Principal		Carrying Amount (a)
Credit Facilities
Revolver Borrowings
Due 2023	$	429	$	429	$	183	$	183
Term Loans
LIBOR plus 2.50% Term Loan A due 2019 through 2023(b)	1,552		1,541		1,615		1,608
LIBOR plus 3.00% Term Loan B due 2019 through 2025	1,670		1,613		1,683		1,623
Senior Unsecured Notes
$225 million of 5.375% Senior Notes due 2024	225		223		225		222
$500 million of 5.000% Senior Notes due 2026	500		495		500		494
Senior Secured Notes
€415 million of 4.875% Euro Fixed Rate Notes due 2022	486		496		465		479
€300 million of Euribor plus 4.875% Euro Floating Rate Notes due 2024	352		355		336		340
€350 million of 5.000% Euro Fixed Rate Notes due 2024	410		428		392		413
Other debt, primarily foreign instruments	21		20		14		13
			5,600				5,375
Less - maturities classified as current			4				4
Total long-term debt			$	5,596			$	5,371

(a)Carrying amount is net of unamortized debt issuance costs and debt discounts or premiums. Total unamortized debt issuance costs were $75 million and $76 million at September 30, 2020 and December 31, 2019. Total unamortized debt (premium) discount, net was $(30) million and $(37) million at September 30, 2020 and December 31, 2019.

(b)The interest rate on Term Loan A at December 31, 2019 was LIBOR plus 1.75%.

Interest expense associated with the amortization of the debt issuance costs and original issue discounts (premiums) recognized in the Company's condensed consolidated statements of income (loss) for the three and nine months ended September 30, 2020 and 2019 is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Amortization of debt issuance fees	$	6	$	5	$	16	$	14
Accretion of debt premium	$	(2)	$	(3)	$	(8)	$	(9)

Schedule of Short-term Debt

The Company's short-term debt at September 30, 2020 and December 31, 2019 consists of the following:

	September 30, 2020		December 31, 2019
Maturities classified as current	$	4	$	4
Short-term borrowings(a)	161		179
Bank overdrafts	11		2
Total short-term debt	$	176	$	185

(a) Includes borrowings under both committed credit facilities and uncommitted lines of credit and similar arrangements.

Financing Arrangements

Financing Arrangements

The table below shows the Company's borrowing capacity on committed credit facilities at September 30, 2020:

	Committed Credit Facilities at September 30, 2020
	Term	Available(b)
		(in billions)
Tenneco Inc. revolving credit facility (a)	2023	$	1.1
Tenneco Inc. Term Loan A	2023	—
Tenneco Inc. Term Loan B	2025	—
Subsidiaries’ credit agreements	2020 - 2028	—
		$	1.1

(a)The Company is required to pay commitment fees under the revolving credit facility on the unused portion of the total commitment.

(b)Letters of credit reduce the available borrowings under the revolving credit facility.

The Third Amendment provides for an increase to the margin applicable to borrowings under the revolving credit facility and

the Term Loan A facility at certain leverage levels as set forth below as one of several conditions for obtaining the less restrictive financial maintenance covenants described below under New Credit Facility — Other Terms and Conditions:

Consolidated net leverage ratio	Interest rate
greater than 6.0 to 1	LIBOR plus 2.50%
less than 6.0 to 1 and greater than 4.5 to 1	LIBOR plus 2.25%

The financial maintenance covenants include (i) a requirement to have a senior secured leverage ratio (as defined in the New Credit Facility), with step-downs, as detailed in the table below; (ii) a requirement to have a consolidated net leverage ratio (as defined in the New Credit Facility), with step-downs, as follows:

(i) Senior secured net leverage ratio		(ii) Consolidated net leverage ratio
not greater than 6.75 to 1	at June 30, 2020	not greater than 4.50 to 1	at March 31, 2020
not greater than 9.50 to 1	at September 30, 2020	not greater than 5.25 to 1	at March 31, 2022
not greater than 8.75 to 1	at December 31, 2020	not greater than 4.75 to 1	at June 30, 2022
not greater than 8.25 to 1	at March 31, 2021	not greater than 4.25 to 1	at September 30, 2022
not greater than 4.50 to 1	at June 30, 2021	not greater than 3.75 to 1	thereafter
not greater than 4.25 to 1	at September 30, 2021
not greater than 4.00 to 1	at December 31, 2021

Schedule of Gain (Loss) on Securitizations or Asset-backed Financing Arrangements of Financial Assets Accounted for as Sale

The Company has securitization programs for some of its accounts receivable, with limited recourse provisions. Borrowings on these securitization programs, which are recorded in short-term debt, at September 30, 2020 and December 31, 2019 are as follows:

	September 30, 2020		December 31, 2019
Borrowings on securitization programs	$	6	$	4

The following table represents the Company's expenses associated with these arrangements for the three and nine months ended September 30, 2020 and 2019:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Loss on sale of receivables(a)	$	5	$	9	$	15	$	23

(a) Amount is included in "Interest expense" in the condensed consolidated statements of income (loss).