Borrowings

6 Months Ended

Jun. 30, 2020

BORROWINGS

Borrowings are summarized as follows:



	June 30, 2020			December 31, 2019
2024 Dollar Term Loans	$	2,075.3		$	2,387.5
2024 Dollar Senior Notes	500.0			500.0
2024 Euro Senior Notes	377.0			375.2
2025 Euro Senior Notes	506.5			504.0
2027 Dollar Senior Notes	500.0			—
Short-term and other borrowings	105.6			109.0
Unamortized original issue discount	(8.3		)	(10.5		)
Unamortized deferred financing costs	(34.8		)	(31.1		)
Total borrowings, net	4,021.3			3,834.1
Less:
Short-term borrowings	17.0			19.6
Current portion of long-term borrowings	24.3			24.3
Long-term debt	$	3,980.0		$	3,790.2

Revolving Credit Facility

At June 30, 2020 and December 31, 2019, letters of credit issued under the Revolving Credit Facility totaled $39.0 million and $38.8 million, respectively, which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $361.0 million and $361.2 million at June 30, 2020 and December 31, 2019, respectively.

Significant Transactions

During January 2020, we voluntarily prepaid $300.0 million of the outstanding principal on the 2024 Dollar Term Loans. As a result of the prepayment, we recorded a loss on extinguishment of debt of $2.7 million consisting of the write off of unamortized deferred financing costs and original issue discounts of $1.5 million and $1.2 million, respectively.

Issuance of 2027 Senior Notes

During June 2020, Axalta Coating Systems, LLC and Axalta Coating Systems Dutch Holding B B.V. (collectively, the "Issuers"), each an indirect, wholly owned subsidiary of the Company, issued $500.0 million in aggregate principal amount of 4.750% Senior Notes due 2027 (the “2027 Senior Notes”).

The 2027 Senior Notes are fully and unconditionally guaranteed by the Company and each of the Company's existing restricted subsidiaries, subject to certain exceptions.

The indenture governing the 2027 Senior Notes contains covenants that limit the Company’s (and its subsidiaries’) ability to, among other things: (i) incur additional debt or issue certain preferred stock; (ii) pay dividends, redeem stock or make other distributions; (iii) make other restricted payments or investments; (iv) create liens on assets; (v) transfer or sell assets; (vi) create restrictions on payment of dividends or other amounts by the Company to the Company’s restricted subsidiaries; (vii) engage in mergers or consolidations; (viii) engage in certain transactions with affiliates; and (ix) designate the Company’s subsidiaries as unrestricted subsidiaries.

The 2027 Senior Notes were issued at par and are due June 15, 2027. We will defer debt issuance costs of $8.3 million, which are recorded as reductions to long-term borrowings in the condensed consolidated balance sheets and amortized over the life of the issuance. The 2027 Senior Notes bear interest at 4.750% which is payable semi-annually on June 15^th and December 15^th. We have the option to redeem all or part of the 2027 Senior Notes at the following redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest, if any, on or after June 15^th of the years indicated:



Period	2027 Senior Notes Percentage
2023	102.375	%
2024	101.188	%
2025 and thereafter	100.000	%

Notwithstanding the foregoing, at any time and from time to time prior to June 15, 2023, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the 2027 Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the 2027 Senior Notes) at a redemption price of 104.75% plus accrued and unpaid interest, if any, to the redemption date. At least 50% of the original aggregate principal of the notes must remain outstanding after each such redemption.

Upon the occurrence of certain events constituting a change of control, holders of the 2027 Senior Notes have the right to require us to repurchase all or any part of the 2027 Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date.

The indebtedness under the 2027 Senior Notes is senior unsecured indebtedness of the Issuers, is senior in right of payment to all future subordinated indebtedness of the Issuers and guarantors, and is equal in right of payment to all existing and future senior indebtedness of the Issuers and guarantors. The 2027 Senior Notes are effectively subordinated to any secured indebtedness of the Issuers and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness.

Future repayments

Below is a schedule of required future repayments of all borrowings outstanding at June 30, 2020.



Remainder of 2020	$	23.5
2021	30.4
2022	54.2
2023	27.1
2024	2,870.3
Thereafter	1,058.9
Total borrowings	4,064.4
Unamortized original issue discount	(8.3		)
Unamortized deferred financing costs	(34.8		)
Total borrowings, net	$	4,021.3