Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt and Lease Obligation [Abstract]

Schedule of Debt

The U.S. dollar equivalents of the components of our debt are as follows:

	December 31, 2019						Principal amount
	Weighted average interest rate (a)		Unused borrowing capacity (b)
			Borrowing currency		U.S. $ equivalent		December 31,
							2019		2018
			in millions
VM Senior Secured Notes	5.34	%	—		$	—	$	5,916.9	$	6,268.3
VM Credit Facilities (c)	3.94	%	(d)		1,326.3		5,473.3		4,600.5
VM Senior Notes	5.34	%	—		—		1,583.8		1,999.9
Telenet Credit Facility	3.89	%	(e)		567.0		3,541.4		3,145.7
Telenet Senior Secured Notes	4.69	%	—		—		1,673.7		1,687.1
Telenet SPE Notes	—		—		—		—		546.2
UPCB SPE Notes	4.54	%	—		—		2,420.1		2,445.5
UPC Holding Bank Facility	—		€	990.1	1,111.7		—		1,645.0
UPC Holding Senior Notes	4.60	%	—		—		1,202.3		1,215.5
Vendor financing (f)	4.12	%	—		—		3,748.2		3,620.3
ITV Collar Loan	0.90	%	—		—		1,435.5		1,379.6
Derivative-related debt instruments (g)	2.58	%	—		—		81.1		301.9
Other (h)	3.96	%	—		—		571.8		459.8
Total debt before deferred financing costs, discounts and premiums (i)	4.30	%			$	3,005.0	$	27,648.1	$	29,315.3

The following table provides a reconciliation of total debt before deferred financing costs, discounts and premiums to total debt and finance lease obligations:

	December 31,
	2019			2018
	in millions
Total debt before deferred financing costs, discounts and premiums	$	27,648.1		$	29,315.3
Deferred financing costs, discounts and premiums, net	(82.7		)	(131.4		)
Total carrying amount of debt	27,565.4			29,183.9
Finance lease obligations (note 12)	617.1			621.3
Total debt and finance lease obligations	28,182.5			29,805.2
Current maturities of debt and finance lease obligations	(3,877.2		)	(3,615.2		)
Long-term debt and finance lease obligations	$	24,305.3		$	26,190.0

_______________ 

(a) Represents the weighted average interest rate in effect at December 31, 2019 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin. The interest rates presented represent stated rates and do not include the impact of derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing. Including the effects of derivative instruments, original issue premiums or discounts and commitment fees, but excluding the impact of deferred financing costs, our weighted average interest rate on our aggregate variable- and fixed-rate indebtedness was 4.14% at December 31, 2019. For information regarding our derivative instruments, see note 8.

(b) Unused borrowing capacity represents the maximum availability under the applicable facility at December 31, 2019 without regard to covenant compliance calculations or other conditions precedent to borrowing. At December 31, 2019, based on the most restrictive applicable leverage covenants, the full amount of unused borrowing capacity was available to be borrowed under each of the respective subsidiary facilities, and based on the most restrictive applicable leverage-based restricted payment tests, there were no restrictions on the respective subsidiary's ability to make loans or distributions from this availability to Liberty Global or its subsidiaries or other equity holders, except as shown in the table below. In the following table, we present (i) for each subsidiary where the ability to borrow is limited, the actual borrowing availability under the respective facility and (ii) for each subsidiary where the ability to make loans or distributions from this availability is limited, the amount that can be loaned or distributed to Liberty Global or its subsidiaries or other equity holders. The amounts presented below reflect any applicable restrictions in effect at December 31, 2019, both before and after completion of the relevant December 31, 2019 compliance reporting requirements, but do not consider any actual or potential changes to our borrowing levels or any amounts loaned or distributed subsequent to December 31, 2019, or the impact of additional amounts that may be available to borrow, loan or distribute under certain defined baskets within each respective facility.

	December 31, 2019				Upon completion of relevant December 31, 2019 compliance reporting requirements
	Borrowing currency		U.S. $ equivalent		Borrowing currency		U.S. $ equivalent
	in millions
Limitation on availability to be borrowed under (1):
VM Credit Facilities	£	533.8	$	708.0	£	921.6	$	1,222.3
UPC Holding Bank Facility	€	990.1	$	1,111.7	€	828.8	$	930.6

_______________

(1) The VM Credit Facilities and the UPC Holding Bank Facility have no additional restriction to loan or distribute from this availability.

(c) Amounts include £103.6 million ($137.4 million) and £41.9 million ($55.6 million) at December 31, 2019 and 2018, respectively, of borrowings pursuant to excess cash facilities under the VM Credit Facilities. These borrowings are owed to certain non-consolidated special purpose financing entities that have issued notes to finance the purchase of receivables due from Virgin Media to certain other third parties for amounts that Virgin Media and its subsidiaries have vendor financed. To the extent the proceeds from these notes exceed the amount of vendor financed receivables available to be purchased, the excess proceeds are used to fund these excess cash facilities.

(d) Unused borrowing capacity under the VM Credit Facilities relates to a multi-currency revolving facility with a maximum borrowing capacity equivalent to £1,000.0 million ($1,326.3 million) (the VM Revolving Facility), which was undrawn at December 31, 2019. During 2019, the VM Revolving Facility was amended and as a result, VM Revolving Facility A and VM Revolving Facility B were cancelled in full and replaced with a single revolving facility maturing on January 31, 2026.

(e) Unused borrowing capacity under the Telenet Credit Facility comprises (i) €400.0 million ($449.0 million) under Telenet Facility AG, (ii) €60.0 million ($67.4 million) under Telenet Facility AP, which was entered into in May 2019, (iii) €25.0 million ($28.1 million) under the Telenet Overdraft Facility and (iv) €20.0 million ($22.5 million) under the Telenet Revolving Facility, each of which were undrawn at December 31, 2019.

(f) Represents amounts owed pursuant to interest-bearing vendor financing arrangements that are used to finance certain of our property and equipment additions and operating expenses. These obligations are generally due within one year and include VAT that was paid on our behalf by the vendor. Repayments of vendor financing obligations are included in repayments and repurchases of debt and finance lease obligations in our consolidated statements of cash flows.

(g) Includes amounts associated with certain derivative-related borrowing instruments, including $45.6 million and $248.6 million at December 31, 2019 and 2018, respectively, carried at fair value. These instruments mature at various dates through January 2025. For information regarding fair value hierarchies, see note 9.

(h) As of December 31, 2019 and 2018, amounts include (i) $264.6 million and $225.9 million, respectively, of debt collateralized by certain trade receivables of Virgin Media and (ii) $55.3 million and $82.9 million, respectively, related to principal borrowings outstanding under the Lionsgate Loan.

(i)

As of December 31, 2019 and 2018, our debt had an estimated fair value of $28.4 billion and $28.5 billion, respectively. The estimated fair values of our debt instruments are generally determined using the average of applicable bid and ask prices (mostly Level 1 of the fair value hierarchy) or, when quoted market prices are unavailable or not considered indicative of fair value, discounted cash flow models (mostly Level 2 of the fair value hierarchy). The discount rates used in the cash flow models are based on the market interest rates and estimated credit spreads of the applicable entity, to the extent available, and other relevant factors. For additional information regarding fair value hierarchies, see note 9.

Maturities of Debt and Capital Lease Obligations

Maturities of our debt as of December 31, 2019 are presented below for the named entity and its subsidiaries, unless otherwise noted. Amounts represent U.S. dollar equivalents based on December 31, 2019 exchange rates:

	Virgin Media			UPC Holding (a)			Telenet (b)			Other			Total
	in millions
Year ending December 31:
2020	$	2,472.4		$	644.6		$	415.1		$	264.8		$	3,796.9
2021 (c)	726.2			22.7			13.2			1,029.2			1,791.3
2022	253.7			20.1			12.6			366.4			652.8
2023	125.4			17.5			12.2			29.3			184.4
2024	779.6			7.7			12.1			—			799.4
Thereafter	11,497.6			3,622.4			5,303.3			—			20,423.3
Total debt maturities (d)	15,854.9			4,335.0			5,768.5			1,689.7			27,648.1
Deferred financing costs, discounts and premiums, net	(23.2		)	(20.3		)	(27.1		)	(12.1		)	(82.7		)
Total debt	$	15,831.7		$	4,314.7		$	5,741.4		$	1,677.6		$	27,565.4
Current portion	$	2,472.4		$	644.6		$	415.1		$	263.6		$	3,795.7
Noncurrent portion	$	13,359.3		$	3,670.1		$	5,326.3		$	1,414.0		$	23,769.7

 

_______________

(a) Amounts include the UPCB SPE Notes issued by the UPCB SPEs. As described above, the UPCB SPEs are consolidated by UPC Holding and Liberty Global.

(b) Amounts include the Telenet SPE Notes issued by the Telenet SPEs. As described above, the Telenet SPEs are consolidated by Telenet and Liberty Global.

(c) The amount for Virgin Media includes certain senior secured notes that have a contractual maturity date of January 15, 2025. Interest on these senior secured notes accrues at a rate of 6.0% through January 15, 2021 and at a rate of 11.0% thereafter. In light of these terms, the above maturity table assumes that these senior secured notes will be repaid or refinanced in 2021.

(d) Amounts include vendor financing obligations of $3,748.2 million, as set forth below:

	Virgin Media		UPC Holding		Telenet		Other		Total
	in millions
Year ending December 31:
2020	$	2,337.8	$	644.6	$	402.9	$	68.9	$	3,454.2
2021	34.8		22.7		—		53.5		111.0
2022	24.6		20.1		—		47.2		91.9
2023	22.1		17.5		—		29.3		68.9
2024	14.5		7.7		—		—		22.2
Total vendor financing maturities	$	2,433.8	$	712.6	$	402.9	$	198.9	$	3,748.2
Current portion	$	2,337.8	$	644.6	$	402.9	$	68.9	$	3,454.2
Noncurrent portion	$	96.0	$	68.0	$	—	$	130.0	$	294.0

Maturities of Finance Lease Liabilities

Amounts include vendor financing obligations of $3,748.2 million, as set forth below:

	Virgin Media		UPC Holding		Telenet		Other		Total
	in millions
Year ending December 31:
2020	$	2,337.8	$	644.6	$	402.9	$	68.9	$	3,454.2
2021	34.8		22.7		—		53.5		111.0
2022	24.6		20.1		—		47.2		91.9
2023	22.1		17.5		—		29.3		68.9
2024	14.5		7.7		—		—		22.2
Total vendor financing maturities	$	2,433.8	$	712.6	$	402.9	$	198.9	$	3,748.2
Current portion	$	2,337.8	$	644.6	$	402.9	$	68.9	$	3,454.2
Noncurrent portion	$	96.0	$	68.0	$	—	$	130.0	$	294.0

Maturities of our operating and finance lease liabilities as of December 31, 2019 are presented below. Amounts represent U.S. dollar equivalents based on December 31, 2019 exchange rates:

	Operating leases			Finance leases
	in millions
Year ending December 31:
2020	$	126.6		$	122.2
2021	98.1			102.6
2022	81.0			101.0
2023	68.5			98.7
2024	56.7			56.4
Thereafter	203.6			459.4
Total payments	634.5			940.3
Less: present value discount	(89.4		)	(323.2		)
Present value of lease payments	$	545.1		$	617.1
Current portion	$	111.7		$	81.5
Noncurrent portion	$	433.4		$	535.6