7. Debt

Our debt consisted of the following (in millions):


	June 30, 2016			December 31, 2015
Current portion of long-term debt
1.450% Senior Notes due 2017	$	500.0		$	—

Long-term debt
1.450% Senior Notes due 2017	$	—		$	500.0
2.000% Senior Notes due 2018		1,150.0			1,150.0
4.625% Senior Notes due 2019		500.0			500.0
2.700% Senior Notes due 2020		1,500.0			1,500.0
3.375% Senior Notes due 2021		300.0			300.0
3.150% Senior Notes due 2022		750.0			750.0
3.550% Senior Notes due 2025		2,000.0			2,000.0
4.250% Senior Notes due 2035		500.0			500.0
5.750% Senior Notes due 2039		500.0			500.0
4.450% Senior Notes due 2045		1,250.0			1,250.0
U.S. Term Loan		2,000.0			2,500.0
Japan Term Loan		113.8			96.8
Other long-term debt		4.5			4.6
Debt discount and issuance costs		(75.5	)		(80.8	)
Adjustment related to interest rate swaps		40.7			26.8

Total long-term debt	$	10,533.5		$	11,497.4

At June 30, 2016, our total debt balance consisted of $8.95 billion aggregate principal amount of our senior notes, a $2.0 billion U.S. term loan (“U.S. Term Loan”) and an 11.7 billion Japanese Yen term loan agreement (“Japan Term Loan”) that will mature on May 31, 2018, partially reduced by the net amount of other debt, debt discount and issuance costs and fair value adjustments, which was $30.3 million.

The U.S. Term Loan is part of our $4.35 billion senior credit agreement (the “Credit Agreement”) that contains: (i) a 5-year unsecured term loan facility in the principal amount of $3.0 billion (the “U.S. Term Loan Facility”), and (ii) a 5-year unsecured multicurrency revolving facility in the principal amount of $1.35 billion (the “Multicurrency Revolving Facility”). The Credit Agreement contains customary affirmative and negative covenants and events of default for an unsecured financing arrangement, including, among other things, limitations on consolidations, mergers and sales of assets. Financial covenants include a consolidated indebtedness to consolidated EBITDA ratio of no greater than 5.0 to 1.0 through June 24, 2016 and no greater than 4.5 to 1.0 thereafter. If our credit rating falls below investment grade, additional restrictions would result, including restrictions on investments and payment of dividends. We were in compliance with all covenants under the Credit Agreement as of June 30, 2016.

On June 24, 2015, we borrowed $3.0 billion under the U.S. Term Loan Facility to fund a portion of the Biomet merger. Under the terms of the U.S. Term Loan Facility, starting September 30, 2015, principal payments are due as follows: $75.0 million on a quarterly basis during the first three years, $112.5 million on a quarterly basis during the fourth year, and $412.5 million on a quarterly basis during the fifth year. We have paid $1.0 billion in principal under the U.S. Term Loan Facility, resulting in $2.0 billion in outstanding borrowings as of June 30, 2016.

Borrowings under the Multicurrency Revolving Facility may be used for general corporate purposes. There were no borrowings outstanding under the Multicurrency Revolving Facility as of June 30, 2016.

Of the total $8.95 billion aggregate principal amount of senior notes outstanding at June 30, 2016, we issued $7.65 billion of this amount in March 2015 (the “Merger Notes”), the proceeds of which were used to finance a portion of the cash consideration payable in the Biomet merger, pay merger related fees and expenses and pay a portion of Biomet’s funded debt. The Merger Notes consist of the following seven tranches: the 1.450% Senior Notes due 2017, the 2.000% Senior Notes due 2018, the 2.700% Senior Notes due 2020, the 3.150% Senior Notes due 2022, the 3.550% Senior Notes due 2025, the 4.250% Senior Notes due 2035 and the 4.450% Senior Notes due 2045.

We may, at our option, redeem our senior notes, in whole or in part, at any time upon payment of the principal, any applicable make-whole premium, and accrued and unpaid interest to the date of redemption. In addition, the Merger Notes and the 3.375% Senior Notes due 2021 may be redeemed at our option without any make-whole premium at specified dates ranging from one month to six months in advance of the scheduled maturity date.

The estimated fair value of our senior notes as of June 30, 2016, based on quoted prices for the specific securities from transactions in over-the-counter markets (Level 2), was $9,251.5 million. The estimated fair value of the Japan Term Loan as of June 30, 2016, based upon publicly available market yield curves and the terms of the debt (Level 2), was $112.9 million. The carrying value of the U.S. Term Loan approximates fair value as it bears interest at short-term variable market rates.