Debt

The Company’s outstanding debt as of March 31, 2020 and 2019 consisted of the following:



(in millions)	Interest Rates	Maturities	March 31, 2020			March 31, 2019
Revolving Credit Facility	LIBOR + 1.50%	August 2024	$	50		$	—
Term Loan A Facilities (Tranche 1)	LIBOR + 1.375%	August 2022	200			246
Term Loan A Facilities (Tranche 2)	LIBOR + 1.50%	August 2024	1,552			1,588
Term Loan B Facility	LIBOR + 2.25%	May 2025	491			497
Subtotal senior secured credit facilities			2,293			2,331
Other secured borrowings	Various	Various	12			—
Total secured debt			2,305			2,331
Other unsecured borrowings	Various	Various	18			—
Senior unsecured EDS Notes	7.45%	October 2029	66			66
Total debt			2,389			2,397
Less: current maturities of long-term debt, net ⁽¹⁾			(89		)	(80		)
Less: unamortized debt issuance costs and premiums, net ⁽²⁾			(17		)	(20		)
Total long-term debt, net of current maturities			$	2,283		$	2,297

⁽¹⁾Current maturities of long-term debt are presented net of $6 million and $8 million of debt issuance costs as of March 31, 2020 and 2019, respectively, associated with the Term Loan A Facilities and Term Loan B Facility.

⁽²⁾Includes $11 million and $12 million of unamortized premiums as of March 31, 2020 and 2019, respectively, on the assumed Electronic Data Systems Corporation (“EDS”) Notes.

Term Loan Facilities and Revolving Credit Facility

The Company has secured credit facilities at March 31, 2020 consisting of (1) senior secured term loan credit facilities with an aggregate principal amount of $1.75 billion (the “Term Loan A Facilities”) and $491 million (the “Term Loan B Facility”), net of $27 million of debt issuance costs and (2) a senior secured revolving credit facility in an available principal amount of $750 million (the “Revolving Credit Facility,” and, together with the Term Loan A Facilities and Term Loan B Facility, the “Credit Facilities”), net of $7 million of original debt issuance costs. As of March 31, 2020, $700 million of available credit remained undrawn under the Revolving Credit Facility.

The Credit Facilities contain negative covenants customary for financings of this type, including covenants that place limitations on the incurrence of additional indebtedness; the creation of liens; the payment of dividends or other restricted payments such as share repurchases; sales of assets; fundamental changes, including mergers and acquisitions; loans and investments; negative pledges; transactions with affiliates; restrictions affecting subsidiaries; modification to charter documents in a manner materially adverse to the lenders; changes in fiscal year and limitations on conduct of business. The Credit Facilities also contain affirmative covenants and representations and warranties customary for financings of this type. Perspecta was in compliance with all applicable covenants as of March 31, 2020.

In addition, the Revolving Credit Facility and Term Loan A Facilities contain financial maintenance covenants requiring, as of the end of any fiscal quarter, (a) a ratio of consolidated total net debt to consolidated EBITDA (as defined in the debt agreement) not in excess of 4.50:1.00, stepping down to 4.25:1.00 at the end of the quarter ending September 30, 2020, and thereafter stepping up to 4.50:1.00 during the twelve-month period following the consummation of a permitted acquisition that involves consideration with a fair market value in excess of $100 million and (b) a ratio of consolidated EBITDA to interest expense of not less than 3.00:1.00. Perspecta was in compliance with these covenants at March 31, 2020.

In addition, on May 31, 2018, Perspecta and each of the other grantors party thereto (the “Grantors”) entered into a Collateral Agreement (the “Collateral Agreement”) with MUFG Bank, Ltd. (“MUFG”), in its capacity as administrative agent, and MUFG Union Bank, N.A., in its capacity as collateral agent. Pursuant to the terms of the Collateral Agreement, each of the Grantors granted a perfected first priority security interest in substantially all of its assets to secure its obligations under the Credit Agreement and related documents to which it is a party, subject to certain customary exceptions.

Interest on the Company’s term loans is payable monthly or quarterly in arrears. The Company fully and unconditionally guaranteed term loans issued by its 100% owned subsidiaries. Interest on the Company’s senior notes is payable semi-annually in arrears. Generally, the Company’s notes are redeemable at the Company’s discretion at the then-applicable redemption prices plus accrued interest.

Expected maturities of long-term debt as of March 31, 2020 are as follows:



Fiscal Year	(in millions)
2021	$	97
2022	95
2023	293
2024	92
2025	1,279
Thereafter	533
Total	$	2,389