Debt

Debt, net of unamortized original issue discounts or premiums, and unamortized debt issuance costs, consists of the following:



	June 30, 2016			December 31, 2015
Accounts Receivable Securitization Facility (1)	$	544		$	571
$2.5 billion ABL Facility (2)	1,410			1,579
7 ³/₈ percent Senior Notes (3)	198			740
8¹/₄ percent Senior Notes (3)	—			315
7 ⁵/₈ percent Senior Notes	1,308			1,306
6¹/₈ percent Senior Notes	936			937
4 ⁵/₈ percent Senior Secured Notes	990			989
5 ³/₄ percent Senior Notes	839			838
5 ¹/₂ percent Senior Notes	792			791
5 ⁷/₈ percent Senior Notes (4)	739			—
Capital leases	85			96
Total debt	7,841			8,162
Less short-term portion (5)	(576		)	(607		)
Total long-term debt	$	7,265		$	7,555

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(1)

At June 30, 2016, $16 was available under our accounts receivable securitization facility. The interest rate applicable to the accounts receivable securitization facility was 1.1 percent at June 30, 2016. During the six months ended June 30, 2016, the monthly average amount outstanding under the accounts receivable securitization facility was $521, and the weighted-average interest rate thereon was 1.1 percent. The maximum month-end amount outstanding under the accounts receivable securitization facility during the six months ended June 30, 2016 was $544. Borrowings under the accounts receivable securitization facility are permitted only to the extent that the face amount of the receivables in the collateral pool, net of applicable reserves, exceeds the outstanding loans. As of June 30, 2016, there were $560 of receivables, net of applicable reserves, in the collateral pool.

(2)

At June 30, 2016, $1.0 billion was available under our ABL facility, net of $37 of letters of credit. The interest rate applicable to the ABL facility was 2.0 percent at June 30, 2016. During the six months ended June 30, 2016, the monthly average amount outstanding under the ABL facility was $1.3 billion, and the weighted-average interest rate thereon was 2.2 percent. The maximum month-end amount outstanding under the ABL facility during the six months ended June 30, 2016 was $1.6 billion. In June 2016, the ABL facility was amended, primarily to extend the maturity date. All amounts borrowed under the ABL facility must be repaid by June 2021.

(3)

In May 2016, we redeemed all of our 8 ¹/₄ percent Senior Notes and $550 principal amount of our 7³/₈ percent Senior Notes. Upon redemption, we recognized an aggregate loss of $25 in interest expense, net. The loss represented the difference between the net carrying amount and the total purchase price of the notes. In August 2016, we expect to redeem the remaining $200 principal amount of our 7³/₈ percent Senior Notes using borrowings available under our ABL facility. We expect to recognize a loss representing the difference between the net carrying amount and the total purchase price of the notes of approximately $10 in interest expense, net upon redemption.

(4)

In May 2016, URNA issued $750 aggregate principal amount of 5 ⁷/₈ percent Senior Notes (the “5 ⁷/₈ percent Notes”) which are due September 15, 2026. The net proceeds from the issuance were approximately $741 (after deducting offering expenses). The 5 ⁷/₈ percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 5 ⁷/₈ percent Notes may be redeemed on or after September 15, 2021, at specified redemption prices that range from 102.938 percent in 2021, to 100 percent in 2024 and thereafter, plus accrued and unpaid interest, if any. The indenture governing the 5 ⁷/₈ percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens; (ii) additional indebtedness; (iii) mergers, consolidations and acquisitions; (iv) sales, transfers and other dispositions of assets; (v) loans and other investments; (vi) dividends and other distributions, stock repurchases and redemptions and other restricted payments; (vii) restrictions affecting subsidiaries; (viii) transactions with affiliates; and (ix) designations of unrestricted subsidiaries, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 5 ⁷/₈ percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon.


(5)	As of June 30, 2016, our short-term debt primarily reflects $544 of borrowings under our accounts receivable securitization facility.

Loan Covenants and Compliance

As of June 30, 2016, we were in compliance with the covenants and other provisions of the ABL facility, the accounts receivable securitization facility and the senior notes. Any failure to be in compliance with any material provision or covenant of these agreements could have a material adverse effect on our liquidity and operations.

The only financial covenant that currently exists under the ABL facility is the fixed charge coverage ratio. Subject to certain limited exceptions specified in the ABL facility, the fixed charge coverage ratio covenant under the ABL facility will only apply in the future if specified availability under the ABL facility falls below 10 percent of the maximum revolver amount under the ABL facility. When certain conditions are met, cash and cash equivalents and borrowing base collateral in excess of the ABL facility size may be included when calculating specified availability under the ABL facility. As of June 30, 2016, specified availability under the ABL facility exceeded the required threshold and, as a result, this maintenance covenant was inapplicable. Under our accounts receivable securitization facility, we are required, among other things, to maintain certain financial tests relating to: (i) the default ratio, (ii) the delinquency ratio, (iii) the dilution ratio and (iv) days sales outstanding. The accounts receivable securitization facility also requires us to comply with the fixed charge coverage ratio under the ABL facility, to the extent the ratio is applicable under the ABL facility.