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Debt

6 Months Ended

Jun. 30, 2021

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


	June 30, 2021		December 31, 2020
Accounts Receivable Securitization Facility expiring 2022 (1) (2)	$	794	$	634
$3.75 billion ABL Facility expiring 2024 (1) (3)	1,294		977
Term loan facility expiring 2025 (1)	966		971
5 7/8 percent Senior Notes due 2026	999		999
5 1/2 percent Senior Notes due 2027	994		994
3 7/8 percent Senior Secured Notes due 2027	742		742
4 7/8 percent Senior Notes due 2028 (4)	1,655		1,654
4 7/8 percent Senior Notes due 2028 (4)	4		4
5 1/4 percent Senior Notes due 2030	743		742
4 percent Senior Notes due 2030	742		742
3 7/8 percent Senior Notes due 2031	1,088		1,088
Other acquired debt	2		—
Finance leases	137		135




Total debt	10,160		9,682
Less short-term portion (5)	(852)		(704)
Total long-term debt	$	9,308	$	8,978

___________________

(1)The table below presents financial information associated with our variable rate indebtedness as of and for the six months ended June 30, 2021. We have borrowed the full available amount under the term loan facility. The principal obligation under the term loan facility is required to be repaid in quarterly installments in an aggregate amount equal to 1.0 percent per annum, with the balance due at the maturity of the facility. The average amount of debt outstanding under the term loan facility decreases slightly each quarter due to the requirement to repay a portion of the principal obligation.



	ABL facility			Accounts receivable securitization facility			Term loan facility
Borrowing capacity, net of letters of credit	$	2,384		$	106		$	—
Letters of credit	64
Interest rate at June 30, 2021	1.4		%	0.9		%	1.9		%
Average month-end debt outstanding	892			628			975
Weighted-average interest rate on average debt outstanding	1.3		%	1.3		%	1.9		%
Maximum month-end debt outstanding	1,672			794			978

(2)In June 2021, the accounts receivable securitization facility was amended, primarily to increase the facility size and to extend the maturity date which may be further extended on a 364-day basis by mutual agreement with the purchasers under the facility. The size of the facility, which expires on June 24, 2022, was increased to $900. 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 and other deductions, exceeds the outstanding loans. As of June 30, 2021, there were $903 of receivables, net of applicable reserves and other deductions, in the collateral pool.

(3)In June 2021, the ABL facility was amended, primarily to provide for a separate tranche of revolving commitments in an aggregate principal amount of $175 U.S. dollars to be available to subsidiaries in Australia and New Zealand acquired as part of the General Finance acquisition discussed in note 3 to the condensed consolidated financial statements. The aggregate amount committed under the ABL facility remains unchanged. The increase in the outstanding debt under the ABL facility since December 31, 2020 primarily reflects the use of borrowings under the ABL facility to fund most of the cost of the General Finance acquisition, partially offset by the use of proceeds from operations to reduce borrowings under the facility.

(4)URNA separately issued 4 7/8 percent Senior Notes in August 2017 and in September 2017. Following the issuances, URNA consummated an exchange offer pursuant to which most of the 4 7/8 percent Senior Notes issued in September 2017 were exchanged for additional notes fungible with the 4 7/8 percent Senior Notes issued in August 2017.

(5)As of June 30, 2021, our short-term debt primarily reflects $794 of borrowings under our accounts receivable securitization facility.

Loan Covenants and Compliance

As of June 30, 2021, we were in compliance with the covenants and other provisions of the ABL, accounts receivable securitization and term loan facilities 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, 2021, specified availability under the ABL facility exceeded the required threshold and, as a result, this financial 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.