Debt

6 Months Ended

Jun. 30, 2017

Note 8. Debt

The Company’s debt consisted of the following at June 30, 2017 and December 31, 2016:


				June 30,		December 31,
(in millions)				2017		2016

Credit facility			$	-	$	-
5.5% unsecured senior notes due 2022				600		600
5.5% unsecured senior notes due 2023				1,550		1,550
4.375% unsecured senior notes due 2025				600		600
Unamortized original issue premium				21		22
Senior notes issuance costs, net				(30)		(31)
	Less: current portion			-		-
		Total long-term debt	$	2,741	$	2,741

Credit facility. In April 2017, the Company amended its credit facility to extend the maturity date, decrease unused lender commitments and increase the borrowing base. As a result, the Company recorded a loss on extinguishment of debt of approximately $1 million for the three and six months ended June 30, 2017, representing the proportional amount of unamortized deferred loan costs associated with banks that are no longer in the credit facility syndicate. The Company’s credit facility, as amended and restated, has a maturity date of May 9, 2022. At June 30, 2017, the Company’s commitments from its bank group were $2.0 billion and its borrowing base was $3.0 billion.

Senior notes. Interest on the Company’s senior notes is paid in arrears semi-annually. The senior notes are fully and unconditionally guaranteed on a senior unsecured basis by all subsidiaries of the Company, subject to customary release provisions as described in Note 13.

At June 30, 2017, the Company was in compliance with the covenants under all of its debt instruments.

Principal maturities of long-term debt. Principal maturities of long-term debt outstanding at June 30, 2017 were as follows:


(in millions)

Remaining 2017		$	-
2018			-
2019			-
2020			-
2021			-
2022			600
Thereafter			2,150
	Total	$	2,750

Interest expense. The following amounts have been incurred and charged to interest expense for the three and six months ended June 30, 2017 and 2016:


		Three Months Ended				Six Months Ended
		June 30,				June 30,
(in millions)			2017		2016		2017		2016

Cash payments for interest		$	4	$	64	$	65	$	106
Non-cash interest			1		1		4		4
Net changes in accruals			34		(10)		10		(1)
	Total interest expense	$	39	$	55	$	79	$	109