Debt



	2012			2011
Short-term debt
Securitization	$	203		$	100
Bank loans/overdrafts/factoring	58			28
Total short-term debt	$	261		$	128
Long-term debt
Senior secured borrowings:
Revolving credit facilities	$	45		$	119
Term loan facilities
U.S. dollar at LIBOR plus 1.75% due 2016	550			550
Euro (€274 at December 31, 2012) at EURIBOR plus 1.75% due 2016	362			355
Senior notes and debentures:
U.S. dollar 7.625% due 2017	400			400
Euro (€500 at December 31, 2012) 7.125% due 2018	659			647
U.S. dollar 6.25% due 2021	700			700
U.S. dollar 7.375% due 2026	350			350
U.S. dollar 7.50% due 2096	64			64
Other indebtedness in various currencies
Fixed rate with rates in 2012 from 1.0% to 8.5% due through 2019	157			178
Variable rate with average rates in 2012 from 2.6% to 6.6% through 2018	126			52
Unamortized discounts	(9		)	(11		)
Total long-term debt	3,404			3,404
Less: current maturities	(115		)	(67		)
Total long-term debt, less current maturities	$	3,289		$	3,337

The estimated fair value of the Company’s long-term borrowings, using a market approach incorporating level 2 inputs such as quoted market prices for the same or similar issues, was $3,603 at December 31, 2012.

The weighted average interest rates were as follows:



	2012		2011		2010
Short-term debt	1.9	%	2.5	%	2.7	%
Revolving credit facilities	3.5	%	3.6	%	2.6	%

Aggregate maturities of long-term debt for the five years subsequent to 2012, excluding unamortized discounts, are $115, $183, $195, $720 and $416, respectively. Cash payments for interest during 2012, 2011 and 2010 were $205, $203 and $163, respectively.

The Company’s senior secured revolving credit facilities, which mature in June 2015, include provisions for letters of credit up to $210 that reduce the amount of borrowing capacity otherwise available. At December 31, 2012, the Company’s available borrowing capacity under the facilities was $1,104, equal to the facilities’ aggregate capacity of $1,200 less $45 of borrowings and $51 of outstanding letters of credit. The interest rate on the facilities can vary from LIBOR or EURIBOR plus a margin of 1.750% up to 2.25% plus a 0.25% facing fee on letters of credit. The senior secured revolving credit facilities and term loans contain financial covenants including an interest coverage ratio and a total net leverage ratio.

See Note Y for subsequent event discussion of the Company's issuance of senior notes due 2023, redemption of senior notes due 2017 and partial repayment of senior secured term loan facilities.

2011 Activity

In January 2011, the Company sold $700 principal amount of 6.25% senior notes due 2021. The notes were issued at par by Crown Americas LLC and Crown Americas Capital Corp. III, each a subsidiary of the Company, and are unconditionally guaranteed by the Company and substantially all of its U.S. subsidiaries. The Company paid $11 in issue costs that will be amortized over the term of the debt.

In June 2011, the Company amended its existing senior secured credit facilities to add a $200 term loan facility and a €274 ($355) term loan facility, each of which matures in June 2016 and bear interest at LIBOR or EURIBOR plus 1.75%. The Company paid $6 in issue costs that will be amortized over the term of the facilities.

In November 2011, the Company amended its existing senior secured credit facilities to add an additional $350 term loan facility which matures in June 2016 and bears interest at LIBOR plus 1.75%. The Company maintained the ability to enter into up to $1,000 of additional term loans under its existing facilities, subject to agreement from any participating lenders. The Company paid $5 in issue costs that will be amortized over the term of the facilities.

The Company recorded a loss from early extinguishments of debt of $32 including $27 for premiums paid and $5 for the write off of deferred financing fees in connection with the following transactions.


•	The Company retired all of its $600 outstanding 7.75% senior notes due 2015 and paid a redemption premium of $25.


•	The Company repaid its existing $147 and €108 ($159) term loans, which were scheduled to mature in November 2012.


•	The Company redeemed all €83 ($121) of the outstanding 6.25% first priority senior secured notes due September 2011.

2010 Activity

In June 2010, the Company repaid $200 of its U.S. dollar term loan facility and the equivalent of $200 of its euro term loan facility.

In July 2010, the Company sold €500 ($650) principal amount of 7.125% senior notes due 2018. The notes were issued at par by Crown European Holdings SA, a wholly owned subsidiary of the Company. The notes are senior obligations of Crown European Holdings SA and are unconditionally guaranteed on a senior basis by the Company and each of the Company’s present and future U.S. subsidiaries that guarantees obligations under the Company’s credit facilities and, subject to applicable law, each of Crown European Holdings SA’s subsidiaries that guarantee obligations under the Company’s credit facilities.

In connection with these transactions, the Company paid $31 in bond issue costs that will be amortized over the related contractual term.

The Company recorded a loss from early extinguishments of debt of $16, including $12 for premiums paid and $4 for the write off of deferred financing fees, in connection with the following transactions:


•	The Company retired €76 ($101) principal amount of Crown European Holdings SA’s 6.25% first priority senior secured notes due 2011 and paid a redemption premium of $4.


•	The Company redeemed all of the outstanding $200 principal amount of 7.625% senior notes due 2013 of Crown Americas LLC and Crown Americas Capital Corp., each a wholly-owned subsidiary of the Company, and paid a redemption premium of $8.