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Borrowings (Tables)
 12 Months Ended
Dec. 31, 2019
Financial Instruments [Abstract]  
Disclosure of detailed information about borrowings
The Group's borrowings as of December 31, 2019 issued by Reynolds Group Issuer LLC, Reynolds Group Issuer Inc. and Reynolds Group Issuer (New Zealand) Limited (together, the "Reynolds Notes Issuers") are summarized below:
 
 
Maturity date
 
Interest payment dates
5.750% Senior Secured Notes due 2020
 
October 15, 2020
 
April 15 and October 15
Floating Rate Senior Secured Notes due 2021(1)
 
July 15, 2021
 
January 15, April 15, July 15 and October 15
5.125% Senior Secured Notes due 2023(2)
 
July 15, 2023
 
January 15 and July 15
7.000% Senior Notes due 2024
 
July 15, 2024
 
January 15 and July 15

(1)
The Floating Rate Senior Secured Notes due 2021 were issued at an issue price of 99.000% and have an interest rate equal to the three-month Dollar LIBOR plus 3.500% reset quarterly. In July 2016, the Group entered into an interest rate swap agreement to mitigate the interest rate risk exposure of the Floating Rate Senior Secured Notes due 2021. While the Group has elected not to adopt hedge accounting, the economic effect of this derivative is that the effective interest rate on the Floating Rate Senior Secured Notes due 2021 is 4.670% from October 15, 2016.
(2)
$250 million aggregate principal amount of 5.125% Senior Secured Notes due 2023 were issued at an issue price of 103.500%.
The Group's borrowings are detailed below:
 
 
As of December 31,
(In $ million)
 
2019
 
2018
Securitization Facility
 
420

 
420

Credit Agreement
 
3,487

 
3,528

Reynolds Notes:
 
 
 
 
Reynolds Senior Secured Notes:
 
 
 
 
5.750% Senior Secured Notes due 2020
 
3,137

 
3,137

6.875% Senior Secured Notes due 2021
 
—

 
345

Floating Rate Senior Secured Notes due 2021
 
750

 
750

5.125% Senior Secured Notes due 2023
 
1,600

 
1,600

Reynolds Senior Notes:
 
 
 
 
7.000% Senior Notes due 2024
 
800

 
800

Pactiv Notes:
 
 
 
 
7.950% Debentures due 2025
 
276

 
276

8.375% Debentures due 2027
 
200

 
200

Other
 
15

 
20

Total principal amount of borrowings
 
10,685

 
11,076

Transaction costs
 
(41
)
 
(59
)
Embedded derivatives
 
16

 
23

Original issue discounts, net of premiums
 
(5
)
 
(5
)
Less:
 
 
 
 
Finance leases classified as lease liabilities
 
(15
)
 
—

Carrying value
 
10,640

 
11,035

 
 
 
 
 
Current borrowings
 
3,587

 
455

Non-current borrowings
 
7,053

 
10,580

Total borrowings
 
10,640

 
11,035

The Credit Agreement comprises the following term and revolving tranches:
 
 
Currency
 
Maturity date
 
Facility value (in million)
 
Value drawn or utilized as of December 31, 2019 (in million)
 
Applicable interest rate as of December 31, 2019
Term Tranches
 
 
 
 
 
 
 
 
 
 
U.S. Term Loans
 
$
 
February 5, 2023
 


 
3,215

 
LIBOR (floor of 0.000%) + 2.750%
European Term Loans
 
€
 
February 5, 2023
 

 
242

 
EURIBOR (floor of 0.000%) + 3.250%
Revolving Tranche(1)
 
 
 
 
 
 
 
 
 
 
U.S. Revolving Loans
 
$
 
August 5, 2021
 
302

 
55

 
—

(1)
The Revolving Tranche was utilized in the form of bank guarantees and letters of credit.
As of December 31, 2019, the Group had outstanding the following debentures (together, the “Pactiv Notes”) issued by Pactiv LLC:
 
 
Maturity date
 
Semi-annual 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
Reconciliation of liabilities arising from financing activities
(In $ million)
 
Principal borrowings
 
Transaction costs
 
Lease liabilities
 
Total
Carrying amount as of December 31, 2018
 
11,076

 
(41
)
 
—

 
11,035

Lease liabilities recognized on adoption of new accounting standard
 
—

 
—

 
373

 
373

Transfer on adoption of new accounting standard
 
(19
)
 
—

 
19

 
—

Correction
 
—

 
—

 
(2
)
 
(2
)
Carrying amount as of January 1, 2019
 
11,057

 
(41
)
 
390

 
11,406

Cash flows
 
(382
)
 
—

 
(80
)
 
(462
)
Net additions/disposals
 
—

 
—

 
92

 
92

Transfers to assets held for sale
 
—

 
—

 
(26
)
 
(26
)
Effects of movements in exchange rates
 
(6
)
 
—

 
—

 
(6
)
Other
 
1

 
11

 
—

 
12

Carrying amount as of December 31, 2019
 
10,670

 
(30
)
 
376

 
11,016

Carrying amount as of January 1, 2018
 
11,440

 
(51
)
 
—

 
11,389

Cash flows
 
(352
)
 
—

 
—

 
(352
)
Effects of movements in exchange rates
 
(12
)
 
—

 
—

 
(12
)
Other
 
—

 
10

 
—

 
10

Carrying amount as of December 31, 2018
 
11,076

 
(41
)
 
—

 
11,035