Debt

3 Months Ended

Mar. 31, 2020



	March 31, 2020				December 31, 2019
(In millions)	Principal Balance		Carrying Value		Principal Balance		Carrying Value
ABL facility	$	600	$	600	$	—	$	—
Term loan facility	2,003		1,969		2,003		1,969
6.125% Senior notes due 2023	535		530		535		530
6.50% Senior notes due 2022	1,200		1,193		1,200		1,192
6.70% Senior debentures due 2034	300		208		300		208
6.75% Senior notes due 2024	1,000		987		1,000		987
Borrowings related to securitization program	181		181		—		—
Finance leases, asset financing and other	356		358		380		380
Total debt	6,175		6,026		5,418		5,266
Short-term borrowings and current maturities of long-term debt	260		260		84		84
Long-term debt	$	5,915	$	5,766	$	5,334	$	5,182

The fair value of our debt and classification in the fair value hierarchy was as follows:



(In millions)	Fair Value		Level 1		Level 2
March 31, 2020	$	6,052	$	2,981	$	3,071
December 31, 2019	5,580		3,190		2,390

We valued Level 1 debt using quoted prices in active markets. We valued Level 2 debt using bid evaluation pricing models or quoted prices of securities with similar characteristics. The fair value of the asset financing arrangements approximates carrying value as the debt is primarily issued at a floating rate, the debt may be prepaid at any time at par without penalty, and the remaining life of the debt is short-term in nature.

ABL Facility

As of March 31, 2020, we had a borrowing base of $1.0 billion and availability under our revolving loan credit agreement (the “ABL Facility”) of $186 million after considering outstanding letters of credit on the ABL Facility of $214 million. The average interest rate on borrowings at March 31, 2020 was 2.30%. As of March 31, 2020, we were in compliance with the ABL Facility’s financial covenants.

Term Loan Facility

In March 2019, we entered into an amendment to our Term Loan Credit Agreement and borrowed an additional $500 million of incremental loans under a new tranche of term loans (the “Incremental Term Loan Facility”), increasing our total borrowing under the Term Loan Facility to $2.0 billion. Proceeds from borrowings under the Incremental Term Loan Facility were used: (i) for general corporate purposes, including to fund purchases of our equity interests described in Note 7—Stockholders’ Equity; and (ii) to pay fees and expenses relating to, or in connection with, the transactions contemplated by the amendment. The incremental loans under the Incremental Term Loan Facility were issued at a price of 99.50% of par.

The interest rates on the Term Loan Facility and the Incremental Term Loan Facility were 3.61% and 4.19%, respectively, as of March 31, 2020.

Senior Notes due 2024

In February 2019, we completed a private placement of $1.0 billion aggregate principal amount of senior notes (“Senior Notes due 2024”), which bear interest at a rate of 6.75% per annum. Proceeds from the Senior Notes due 2024 were used to repay our outstanding obligation under an unsecured credit facility and to finance a portion of our share repurchases described in Note 7—Stockholders’ Equity.

Borrowings related to Securitization Program

Our trade receivables securitization program permits us to borrow, on an unsecured basis, cash collected in a servicing capacity on previously sold receivables. These borrowings are owed to the program’s Purchasers and are included in short-term debt until they are repaid in the following month’s settlement. The securitization program expires in July 2022 and contains financial covenants customary for this type of arrangement, including maintaining a defined average days sales outstanding ratio. For additional information on the securitization program, see Note 1—Organization, Description of Business and Basis of Presentation.