Debt

6 Months Ended

Jun. 30, 2019



	As of June 30, 2019	As of December 31, 2018
	(In $ millions)
Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates
Current installments of long-term debt	26	367
Short-term borrowings, including amounts due to affiliates⁽¹⁾	68	77
Revolving credit facility⁽²⁾	148	40
Accounts receivable securitization facility⁽³⁾	77	77
Total	319	561

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⁽¹⁾	The weighted average interest rate was 2.9% and 3.2% as of June 30, 2019 and December 31, 2018, respectively.


⁽²⁾	The weighted average interest rate was 1.3% and 6.0% as of June 30, 2019 and December 31, 2018, respectively.


⁽³⁾	The weighted average interest rate was 3.3% and 3.1% as of June 30, 2019 and December 31, 2018, respectively.



	As of June 30, 2019		As of December 31, 2018
	(In $ millions)
Long-Term Debt
Senior unsecured notes due 2019, interest rate of 3.250%	—		343
Senior unsecured notes due 2021, interest rate of 5.875%	400		400
Senior unsecured notes due 2022, interest rate of 4.625%	500		500
Senior unsecured notes due 2023, interest rate of 1.125%	852		857
Senior unsecured notes due 2024, interest rate of 3.500%	499		—
Senior unsecured notes due 2025, interest rate of 1.250%	341		343
Senior unsecured notes due 2027, interest rate of 2.125%	565		568
Pollution control and industrial revenue bonds due at various dates through 2030, interest rates ranging from 4.05% to 5.00%	167		167
Nilit bank loans due at various dates through 2026⁽¹⁾	10		10
Obligations under finance leases due at various dates through 2054	156		167
Subtotal	3,490		3,355
Unamortized debt issuance costs⁽²⁾	(20	)	(18	)
Current installments of long-term debt	(26	)	(367	)
Total	3,444		2,970

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⁽¹⁾	The weighted average interest rate was 1.3% and 1.3% as of June 30, 2019 and December 31, 2018, respectively.


⁽²⁾	Related to the Company's long-term debt, excluding obligations under finance leases.

Senior Credit Facilities

On January 7, 2019, Celanese, Celanese US and certain subsidiary borrowers entered into a new senior credit agreement (the "Credit Agreement") consisting of a $1.25 billion senior unsecured revolving credit facility (with a letter of credit sublimit), maturing in 2024. The Credit Agreement is guaranteed by Celanese, Celanese US and substantially all of its domestic subsidiaries ("the Subsidiary Guarantors").

The Company's debt balances and amounts available for borrowing under its senior unsecured revolving credit facility are as follows:



	As of June 30, 2019
	(In $ millions)
Revolving Credit Facility
Borrowings outstanding⁽¹⁾	148
Letters of credit issued	—
Available for borrowing⁽²⁾	1,102

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⁽¹⁾	The Company borrowed $869 million and repaid $763 million under its senior unsecured revolving credit facility during the six months ended June 30, 2019.


⁽²⁾	The margin for borrowings under the senior unsecured revolving credit facility was 1.25% above LIBOR or EURIBOR at current Company credit ratings.

Senior Notes

The Company has outstanding senior unsecured notes, issued in public offerings registered under the Securities Act of 1933 ("Securities Act"), as amended (collectively, the "Senior Notes"). The Senior Notes were issued by Celanese US and are guaranteed on a senior unsecured basis by Celanese and the Subsidiary Guarantors. Celanese US may redeem some or all of each of the Senior Notes, prior to their respective maturity dates, at a redemption price of 100% of the principal amount, plus a

"make-whole" premium as specified in the applicable indenture, plus accrued and unpaid interest, if any, to the redemption date.

On May 8, 2019, Celanese US completed an offering of $500 million in principal amount of 3.500% senior unsecured notes due May 8, 2024 (the "3.500% Notes") in a public offering registered under the Securities Act. The 3.500% Notes were issued at a discount to par at a price of 99.895%, which is being amortized to Interest expense in the unaudited interim consolidated statement of operations over the term of the 3.500% Notes. Net proceeds from the sale of the 3.500% Notes were used to redeem in full the 3.250% senior unsecured notes due October 15, 2019 (the "3.250 Notes"), to repay $156 million of outstanding borrowings under the senior unsecured revolving credit facility and for general corporate purposes. In connection with the issuance of the 3.500% Notes, the Company entered into a cross-currency swap to effectively convert its fixed-rate US dollar denominated debt under the 3.500% Notes, including annual interest payments and the payment of principal at maturity, to fixed-rate Euro denominated debt. See Note 17 for additional information.

Accounts Receivable Securitization Facility

The Company has a US accounts receivable securitization facility involving receivables of certain of its domestic subsidiaries of the Company transferred to a wholly-owned, "bankruptcy remote" special purpose subsidiary of the Company ("SPE"). The facility, which permits cash borrowings and letters of credit, was amended on July 8, 2019 to extend the maturity date to July 6, 2020 and modify certain events of default, limitations on concentrations of obligors and certain of the components used to calculate the SPE reserves. All of the SPE's assets have been pledged to the administrative agent in support of the SPE's obligations under the facility.

The Company's debt balances and amounts available for borrowing under its securitization facility are as follows:



	As of June 30, 2019
	(In $ millions)
Accounts Receivable Securitization Facility
Borrowings outstanding	77
Letters of credit issued	29
Available for borrowing	5
Total borrowing base	111

Maximum borrowing base⁽¹⁾	120

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⁽¹⁾	Outstanding accounts receivable transferred to the SPE was $188 million.

Other Financing Arrangements

In June 2018, the Company entered into a factoring agreement with a global financial institution to sell certain accounts receivable on a non-recourse basis. These transactions are treated as a sale and are accounted for as a reduction in accounts receivable because the agreement transfers effective control over and risk related to the receivables to the buyer. The Company has no continuing involvement in the transferred receivables, other than collection and administrative responsibilities and, once sold, the accounts receivable are no longer available to satisfy creditors in the event of bankruptcy. The Company de-recognized $134 million and $117 million of accounts receivable as of June 30, 2019 and December 31, 2018, respectively.

Covenants

The Company's material financing arrangements contain customary covenants, including the maintenance of certain financial ratios, events of default and change of control provisions. Failure to comply with these covenants, or the occurrence of any other event of default, could result in acceleration of the borrowings and other financial obligations. The Company is in compliance with all of the covenants related to its debt agreements as of June 30, 2019.