Debt

3 Months Ended

Mar. 30, 2019

DEBT

Total debt consisted of the following:



Debt Description	Maturity	Interest Rate at March 30, 2019	March 30, 2019			December 29, 2018
ABL Facility	October 20, 2020	—	$	—		$	81
ABS Facility	September 21, 2020	3.49%	270			275
Term Loan Facility (net of $6 of unamortized deferred financing costs)	June 27, 2023	4.50%	2,134			2,145
Senior Notes (net of $5 of unamortized deferred financing costs)	June 15, 2024	5.88%	595			595
Obligations under financing leases	2019–2026	2.00% - 6.17%	373			352
Other debt	2021–2031	5.75% - 9.00%	9			9
Total debt			3,381			3,457
Current portion of long-term debt			(106		)	(106		)
Long-term debt			$	3,275		$	3,351

At March 30, 2019, after considering interest rate swaps that fixed the interest rate on $1.1 billion of principal of the Term Loan Facility described below, approximately 39% of the Company’s total debt was at a floating rate.

ABL Facility—USF’s asset backed senior secured revolving loan facility (the “ABL Facility”) provides for loans under two tranches: ABL Tranche A-1 and ABL Tranche A, with its capacity limited by a borrowing base. The maximum borrowing available is $1,300 million, with ABL Tranche A-1 at $100 million, and ABL Tranche A at $1,200 million.

As of March 30, 2019, USF had no outstanding borrowings, but had issued letters of credit totaling $371 million, under the ABL Facility. Outstanding letters of credit included: (1) $299 million issued in favor of certain commercial insurers to secure USF’s obligations with respect to its self-insurance program, (2) $71 million issued to secure USF’s obligations with respect to certain real estate leases, and (3) $1 million issued for other obligations. There was available capacity under the ABL Facility of $929 million at March 30, 2019. USF may periodically elect to pay interest at an alternative base rate (“ABR”), as defined under the ABL Facility, or the London Interbank Offered Rate (“LIBOR”) plus the applicable interest rate spread as provided for in the credit agreement. The interest rate spreads are based upon USF’s consolidated secured leverage ratio.

ABS Facility—Under the ABS Facility, USF sells, on a revolving basis, its eligible receivables to the Receivables Company. See Note 5, Accounts Receivable Financing Program.

The maximum capacity under the ABS Facility is $800 million. Borrowings under the ABS Facility were $270 million at March 30, 2019. The Company, at its option, can request additional borrowings up to the maximum commitment, provided sufficient eligible receivables are available as collateral. There was available capacity under the ABS Facility of $496 million at March 30, 2019.

Term Loan Facility—USF's senior secured term loan facility (the “Term Loan Facility”) had an outstanding balance of $2.1 billion at March 30, 2019. The table above reflects the March 30, 2019 interest rate on the unhedged portion of the Term Loan Facility. With respect to the portion of the Term Loan Facility subject to interest rate hedging agreements (which was $1.1 billion as of March 30, 2019), the effective interest rate is 3.71%.

Restrictive Covenants

USF's credit agreements and indentures contain customary covenants. These include, among other things, covenants that restrict USF’s ability to incur certain additional indebtedness, create or permit liens on assets, pay dividends, or engage in mergers or consolidations. As of March 30, 2019, USF had $1.0 billion of restricted payment capacity under these covenants, and approximately $2.3 billion of its net assets were restricted considering the net deferred tax assets and intercompany balances that eliminate in consolidation.