Debt

6 Months Ended

Jun. 30, 2020



	As of June 30, 2020	As of December 31, 2019
	(In $ millions)
Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates
Current installments of long-term debt	427	28
Short-term borrowings, including amounts due to affiliates⁽¹⁾	377	81
Revolving credit facility⁽²⁾	154	272
Accounts receivable securitization facility⁽³⁾	87	115
Total	1,045	496

______________________________


⁽¹⁾	The weighted average interest rate was 1.2% and 2.3% as of June 30, 2020 and December 31, 2019, respectively. During the six months ended June 30, 2020, the Company entered into an aggregate of $300 million in short-term, bilateral term loans.


⁽²⁾	The weighted average interest rate was 1.5% and 1.6% as of June 30, 2020 and December 31, 2019, respectively.


⁽³⁾	The weighted average interest rate was 0.9% and 2.4% as of June 30, 2020 and December 31, 2019, respectively.



	As of June 30, 2020		As of December 31, 2019
	(In $ millions)
Long-Term Debt
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%	839		841
Senior unsecured notes due 2024, interest rate of 3.500%	499		499
Senior unsecured notes due 2025, interest rate of 1.250%	336		337
Senior unsecured notes due 2027, interest rate of 2.125%	556		558
Pollution control and industrial revenue bonds due at various dates through 2030, interest rates ranging from 4.05% to 5.00%	167		167
Bank loans due at various dates through 2026⁽¹⁾	8		9
Obligations under finance leases due at various dates through 2054	128		144
Subtotal	3,433		3,455
Unamortized debt issuance costs⁽²⁾	(17	)	(18	)
Current installments of long-term debt	(427	)	(28	)
Total	2,989		3,409

______________________________


⁽¹⁾	The weighted average interest rate was 1.3% and 1.3% as of June 30, 2020 and December 31, 2019, respectively.


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

Senior Credit Facilities

The Company has a 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, 2020
	(In $ millions)
Revolving Credit Facility
Borrowings outstanding⁽¹⁾	154
Available for borrowing⁽²⁾	1,096

______________________________


⁽¹⁾	The Company borrowed $385 million and repaid $503 million under its senior unsecured revolving credit facility during the six months ended June 30, 2020.


⁽²⁾	The margin for borrowings under the senior unsecured revolving credit facility was 1.5% 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.

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 securitization facility, which permits cash borrowings and letters of credit, was amended and restated on July 6, 2020. All of the SPE's assets were pledged to the administrative agent in support of the SPE's obligations under the facility. See Note 21 for further information.

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



	As of June 30, 2020
	(In $ millions)
Accounts Receivable Securitization Facility
Borrowings outstanding⁽¹⁾	87
Available for borrowing	5
Total borrowing base	92

Maximum borrowing base⁽²⁾	120

______________________________


⁽¹⁾	The Company repaid $28 million under its US accounts receivable securitization facility during the six months ended June 30, 2020.


⁽²⁾	Outstanding accounts receivable transferred to the SPE was $117 million.

Other Financing Arrangements

The Company has 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 $110 million and $257 million of accounts receivable under this factoring agreement as of June 30, 2020 and December 31, 2019, 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, 2020.