Short-Term Borrowings and Other Debt Obligations



(Dollars in millions)	September 30, 2017		December 31, 2016
Revolving Credit Agreement	$	225	$	—
Other short-term loans	28		2
Total short-term borrowings	253		2
Current portion of long-term debt and term loan agreement	138		177
Short-term borrowings and current portion of long-term debt	$	391	$	179

Revolving Credit Agreement and Secured Term Loan Agreement

At September 30, 2017, we had total commitments under our revolving credit facility (the “Revolving Credit Agreement”) maturing in July of 2019 of $1.0 billion and borrowings of $388 million under our secured term loan agreement (“the Term Loan Agreement and collectively with the Revolving Credit Agreement, the “Credit Agreements”) maturing in July of 2020. At September 30, 2017, we had $691 million available under the Credit Agreements and the following table summarizes our borrowing availability under these agreements:



(Dollars in millions)	September 30, 2017
Facilities	$	1,388
Less uses of facilities:
Revolving credit agreement	225
Letters of credit	84
Secured term loan before debt issuance cost	388
Borrowing Availability	$	691

Loans under the Credit Agreements are subject to varying interest rates based on whether the loan is Eurodollar loan or an alternate base rate loan. We also incur a quarterly facility fee on the amount of the Revolving Credit Agreement. For the three months ended September 30, 2017, the interest rate for the Revolving Credit Agreement was LIBOR plus a margin rate of 2.80%. For the three months ended September 30, 2017, the interest rate for the Term Loan Agreement was LIBOR plus a margin rate of 2.30%.

Our Credit Agreements contain customary events of default, including our failure to comply with our financial covenants. We must maintain a leverage ratio of no greater than 2.5 to 1, a leverage and letters of credit ratio of no greater than 3.5 to 1 and an asset coverage ratio of at least 4.0 to 1. At September 30, 2017, we were in compliance with these financial covenants.

Other Borrowings and Debt Activity

On June 26, 2017, we issued an additional $250 million aggregate principal amount of our 9.875% senior notes due 2024 (“Notes”). These Notes were issued as additional securities under an indenture pursuant to which we previously issued $540 million aggregate principal amount of our 9.875% senior notes due 2024.

We have short-term borrowings with various domestic and international institutions pursuant to uncommitted credit facilities. At September 30, 2017, we had $28 million in short-term borrowings under these arrangements. In addition, we had $387 million of letters of credit under various uncommitted facilities, of which $72 million has been cash collateralized (included in “Cash and Cash Equivalents” in the accompanying Condensed Consolidated Balance Sheets), and $59 million of surety bonds, primarily performance bonds, issued by financial sureties against an indemnification from us at September 30, 2017.

In June 2017, we repaid $88 million of our 6.35% Senior Notes on the maturity date. At September 30, 2017, the current portion of long-term debt was primarily related to $66 million of our 6.00% Senior Notes due March 2018, the $50 million current portion of our Term Loan Agreement and $22 million of current portion of capital leases and other debt.