Debt (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Summary of Debt

Debt consisted of the following:

	As of			As of
	June 30,			December 31,
	2023			2022
Credit Agreement	$	1,933		$	2,227
Notes:
4.000% Senior Secured Notes due 2027		1,000			1,000
4.375% Senior Secured Notes due 2028		500			500
Pactiv Debentures:
7.950% Debentures due 2025		217			217
8.375% Debentures due 2027		167			167
Other		45			49
Total principal amount of borrowings		3,862			4,160
Deferred debt issuance costs (“DIC”)		(13	)		(14	)
Original issue discounts, net of premiums (“OID”)		(9	)		(10	)
		3,840			4,136
Less: current portion		(18	)		(31	)
Long-term debt	$	3,822		$	4,105

Summary of Components of the Credit Agreement

the Credit Agreement comprised the following term and revolving tranches:

	Maturity Date	Value Drawn or Utilized as of June 30, 2023		Applicable Interest Rate as of June 30, 2023
Term Tranches
U.S. term loans Tranche B-2	February 5, 2026	$	935	SOFR (floor of 0.000%) + 3.250%
U.S. term loans Tranche B-3	September 24, 2028	$	998	SOFR (floor of 0.500%) + 3.250%
Revolving Tranche(1)
U.S. Revolving Loans	August 5, 2024	$	50		—

(1)The Revolving Tranche represents a $250 million facility. The amount utilized is in the form of letters of credit.

Schedule of Outstanding Notes

As of June 30, 2023, our outstanding Notes were as follows:

	Maturity Date	Interest Payment Dates
4.000% Senior Secured Notes due 2027	October 15, 2027	April 15 and October 15
4.375% Senior Secured Notes due 2028	October 15, 2028	April 15 and October 15

As of June 30, 2023, our outstanding debentures (together, the “Pactiv Debentures”) were as follows:

	Maturity Date	Interest Payment Dates
7.950% Debentures due 2025	December 15, 2025	June 15 and December 15
8.375% Debentures due 2027	April 15, 2027	April 15 and October 15

Schedule of Required Future Repayments of Outstanding Debt

Below is a schedule of required future repayments on our debt outstanding as of June 30, 2023:

2023	$	9
2024		17
2025		233
2026		951
2027		1,183
Thereafter		1,469
Total principal amount of borrowings	$	3,862

Schedule of Carrying Values and Fair Values of Debt Outstanding

Below is a schedule of carrying values and fair values of our debt outstanding:

	As of June 30, 2023				As of December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit Agreement	$	1,923	$	1,931	$	2,217	$	2,206
Notes:
4.000% Senior Secured Notes due 2027		994		894		993		890
4.375% Senior Secured Notes due 2028		496		438		496		447
Pactiv Debentures:
7.950% Debentures due 2025		216		220		215		210
8.375% Debentures due 2027		166		170		166		162
Other		45		45		49		49
Total	$	3,840	$	3,698	$	4,136	$	3,964

Interest Expense, Net

Interest expense, net consisted of the following:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2023			2022			2023			2022
Interest expense:
Credit Agreement	$	43		$	23		$	86		$	44
Notes		16			16			31			31
Pactiv Debentures		8			9			16			19
Interest income		(3	)		(1	)		(7	)		(1	)
Amortization of DIC and OID		1			1			2			2
Realized derivative gains		(2	)		—			(3	)		—
Net foreign currency exchange losses		—			—			—			1
Other		1			2			2			3
Interest expense, net	$	64		$	50		$	127		$	99