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Financing Arrangements and Debt
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Financing Arrangements and Debt
Note G – Financing Arrangements and Debt
As of December 31, 2021, the Company has a $1.6 billion revolving credit facility (RCF). The RCF is a senior unsecured guaranteed facility which expires in November 2023. At December 31, 2021, the Company had no outstanding borrowings under the RCF and $31.4 million of outstanding letters of credit, which reduces the borrowing capacity of the RCF. At December 31, 2021, the interest rate in effect on borrowings under the facility would have been 1.78%. At December 31, 2021, the Company was in compliance with all covenants related to the RCF.
In March 2021, the Company issued $550.0 million of new notes that bear interest at a rate of 6.375% and mature on July 15, 2028. The Company incurred transaction costs of $8.1 million on the issuance of these new notes and the Company will pay interest semi-annually on January 15 and July 15 of each year. The proceeds of the $550.0 million notes, along with cash on hand, were used to redeem and cancel $259.3 million of the Company’s 4.00% notes due June 2022 and $317.1 million of the Company’s 4.95% notes due December 2022 (originally issued as 3.70% notes due 2022; collectively the 2022 Notes). The cost of the debt extinguishment of $36.9 million is included in Interest expense, net on the Consolidated Statement of Operations for the year ended December 31, 2021. The cash costs of $34.2 million are shown as a financing activity on the Consolidated Statement of Cash Flows for the year ended December 31, 2021.
In August 2021, the Company redeemed $150.0 million aggregate principal amount of its 6.875% senior notes due 2024 (2024 Notes). The cost of the debt extinguishment of $3.5 million is included in Interest expense, net on the Consolidated Statement of Operations for the year ended December 31, 2021. The cash costs of $2.6 million are shown as a financing activity on the Consolidated Statement of Cash Flows for the year ended December 31, 2021.
In December 2021, the Company redeemed an additional $150.0 million aggregate principal amount of the 2024 Notes. The cost of the debt extinguishment of $3.4 million is included in Interest expense, net on the Consolidated Statement of Operations for the year ended December 31, 2021. The cash costs of $2.6 million are shown as a financing activity on the Consolidated Statement of Cash Flows for the year ended December 31, 2021.
Long-term debt consisted of the following as of December 31, 2021 and 2020:
December 31,
(Thousands of dollars)20212020
Notes payable
4.00% notes, due June 2022
$— 259,291 
4.95% notes, due December 2022 ¹
— 317,067 
6.875% notes, due August 2024
242,428 542,428 
5.75% notes, due August 2025
548,675 548,675 
5.875% notes, due December 2027
543,249 543,249 
6.375% notes, due July 2028
550,000 — 
7.05% notes, due May 2029
250,000 250,000 
6.375% notes, due December 2042 ¹
349,000 349,000 
Total notes payable2,483,352 2,809,710 
Unamortized debt issuance cost and discount on notes payable(22,773)(21,643)
Total notes payable, net of unamortized discount2,460,579 2,788,067 
Capitalized lease obligation, due through March 2029 ¹5,489 — 
Total debt including current maturities2,466,068 2,788,067 
Senior Unsecured Revolving Credit Facility— 200,000 
Current maturities (654)— 
Total long-term debt$2,465,414 2,988,067 
1 Coupon rate may fluctuate 25 basis points if rating is periodically downgraded or upgraded by S&P and Moody’s.
The amount of long-term debt repayable over each of the next five years and thereafter are as follows:  nil in 2022, nil in 2023, $242.4 million in 2024, $548.7 million in 2025, nil in 2026 and $1.69 billion thereafter.
The Company also has a shelf registration statement on file with the U.S. Securities and Exchange Commission that permits the offer and sale of debt and/or equity securities through October 15, 2024.