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Long-Term Debt
 12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Long-Term Debt Long-Term Debt
As of December 31, 2020
As of December 31, 2019
Maturity DateInterest RateAmountInterest RateAmount
Credit Facilities
CDW UK revolving credit facility(1)
July 2021— %$— — %$— 
Senior secured asset-based revolving credit facilityMarch 2022— %— 5.000 %51.0 
Total credit facilities— 51.0 
Term Loans
CDW UK term loan(1)
August 20211.445 %56.0 2.190 %61.0 
Senior secured term loan facilityOctober 20261.900 %1,423.4 3.550 %1,438.3 
Total term loans1,479.4 1,499.3 
Unsecured Senior Notes
Senior notes due 2024December 20245.500 %575.0 5.500 %575.0 
Senior notes due 2025May 20254.125 %600.0 — %— 
Senior notes due 2025September 2025— %— 5.000 %600.0 
Senior notes due 2028April 20284.250 %600.0 4.250 %600.0 
Senior notes due 2029February 20293.250 %700.0 — %— 
Total unsecured senior notes2,475.0 1,775.0 
Other long-term obligations— 12.6 
Unamortized deferred financing fees(27.2)(20.6)
Current maturities of long-term debt(70.9)(34.1)
Total long-term debt$3,856.3 $3,283.2 
(1)British pound-denominated debt facilities.
As of December 31, 2020, the Company is in compliance with the covenants under the various credit agreements and indentures.
Credit Facilities
The Company has a variable rate CDW UK revolving credit facility that is denominated in British pounds. As of December 31, 2020, the Company could have borrowed up to an additional £50 million ($68 million) under the CDW UK revolving credit facility.
The Company also has a variable rate senior secured asset-based revolving credit facility (the "Revolving Loan") that is denominated in US dollars. The Revolving Loan is used by the Company for borrowings, issuances of letters of credit and floorplan financing. As of December 31, 2020, the Revolving Loan has less than $1 million of undrawn letters of credit, $459 million reserved for the floorplan sub-facility and a borrowing base of $2.2 billion, which is based on the amount of eligible inventory and accounts receivable balances as of November 30, 2020. As of December 31, 2020, the Company could have borrowed up to an additional $1.0 billion under the Revolving Loan.
The Revolving Loan is collateralized by a first priority interest in inventory (excluding inventory to the extent collateralized under the inventory financing arrangements as described in Note 7 (Inventory Financing Agreements)), deposits, and accounts receivable, and by a second priority interest in substantially all other US assets.
Term Loans
The CDW UK term loan has a variable interest rate with the remaining principal amount due at the maturity date. The CDW UK term loan agreement imposes restrictions on CDW UK's ability to transfer funds to the Company through the payment of dividends, repayment of intercompany loans, advances or subordinated debt that require, among other things, the maintenance of a minimum net leverage ratio. As of December 31, 2020, the amount of restricted payment capacity under the CDW UK term loan was £159 million ($218 million).
The senior secured term loan facility (the "Term Loan") has a variable interest rate, which has effectively been capped through the use of interest rate caps (see Note 9 (Financial Instruments)). The interest rate disclosed in the table above represents the variable interest rates in effect for December 31, 2020 and 2019, respectively. The Company is required to pay quarterly principal installments of $4 million with the remaining principal amount due at the maturity date. As of December 31, 2020, the amount of CDW's restricted payment capacity under the Term Loan was $2.2 billion.
The Term Loan is collateralized by a second priority interest in substantially all inventory (excluding inventory to the extent collateralized under the inventory financing arrangements as described in Note 7 (Inventory Financing Agreements)), deposits and accounts receivable, and by a first priority interest in substantially all other US assets.
Unsecured Senior Notes
The senior notes have a fixed interest rate, which is paid semi-annually.
Debt Issuance and Extinguishments
On April 21, 2020, the Company completed the issuance of $600 million aggregate principal amount of 4.125% Senior Notes due 2025 at par ("2025 Senior Notes"). The 2025 Senior Notes will mature on May 1, 2025 and bear interest of 4.125% per annum, payable semi-annually on May 1 and November 1 of each year, which had payments commence November 1, 2020.
On August 13, 2020, the Company completed the issuance of $700 million aggregate principal amount of 3.25% Senior Notes due 2029 at par ("2029 Senior Notes"). The 2029 Senior Notes will mature on February 15, 2029 and bear interest of 3.25% per annum, payable semi-annually on February 15 and August 15 of each year, which had payments commence February 15, 2021. The net proceeds from the issuance were primarily used to redeem all of the remaining $600 million aggregate principal amount of the 5.000% Senior Notes due September 2025 at a redemption price of 103.75% of the principal amount redeemed, plus accrued and unpaid interest to the date of redemption, to pay fees and expenses related to the issuance and redemption, and for general corporate purposes.
On September 26, 2019, the Company completed the issuance of $600 million aggregate principal amount of 4.25% Senior Notes due 2028 ("2028 Senior Notes") at par. The 2028 Senior Notes will mature on April 1, 2028 and bear interest at a rate of 4.25% per annum, payable semi-annually on April 1 and October 1 of each year, which had payments commence on April 1, 2020. The net proceeds from the issuance of the 2028 Senior Notes were primarily used to redeem all of the remaining $525 million aggregate principal amount of the 5.00% Senior Notes due 2023 at a redemption price of 102.5% of the principal amount redeemed, plus accrued and unpaid interest to the date of
redemption, and to pay fees and expenses related to the issuance and redemption. The redemption date was October 12, 2019. On the same date, the indenture governing the Senior Notes due 2023 was satisfied and discharged.
Total Debt Maturities
A summary of total debt maturities is as follows:
Years ending December 31,Debt Maturities
2021$70.9 
202215.0 
202314.9 
2024589.9 
2025614.9 
Thereafter2,648.8 
Total debt maturities$3,954.4 
Fair Value
The fair values of the Senior Notes were estimated using quoted market prices for identical liabilities that are traded in over-the-counter secondary markets that are not considered active. The fair value of the Term Loan was estimated using dealer quotes for identical liabilities in markets that are not considered active. The Senior Notes, Term Loan and CDW UK term loan are classified as Level 2 within the fair value hierarchy. The carrying value of the Revolving Loan and CDW UK revolving credit facility approximate fair value if there are outstanding borrowings. The approximate fair values and related carrying values of the Company's long-term debt, including current maturities and excluding unamortized discount and unamortized deferred financing costs, are as follows:
December 31,
20202019
Fair value$4,077.9 $3,447.5 
Carrying value3,954.4 3,337.9