Long-term Debt and Borrowing Arrangements

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Long-term Debt and Borrowing Arrangements

Long-term Corporate Debt and Borrowing Arrangements

Long-term corporate debt and borrowing arrangements consisted of:

		As of			As of
	Maturity Dates	June 30,			December 31,
		2019			2018
5½% Senior Notes (a)	April 2023	$	675		$	675
6⅜% Senior Notes	April 2024	350			350
4⅛% euro-denominated Senior Notes	November 2024	341			344
Floating Rate Term Loan (b)	February 2025	1,118			1,123
5¼% Senior Notes	March 2025	375			375
4½% euro-denominated Senior Notes	May 2025	284			287
4¾% euro-denominated Senior Notes	January 2026	398			401
Other (c)		34			41
Deferred financing fees		(40		)	(45		)
Total		3,535			3,551
Less: Short-term debt and current portion of long-term debt		420			23
Long-term debt		$	3,115		$	3,528

__________

^(a)  A portion of these notes have been called for redemption.

^(b)  The floating rate term loan is part of the Company’s senior revolving credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property. As of June 30, 2019, the floating rate term loan due 2025 bears interest at one-month LIBOR plus 200 basis points, for an aggregate rate of 4.41%. The Company has entered into a swap to hedge $700 million of its interest rate exposure related to the floating rate term loan at an aggregate rate of 3.67%.

^(c)  Primarily includes finance leases which are secured by liens on the related assets.

In June 2019, the Company called $400 million of its 5½% Senior Notes due April 2023 to be redeemed upon the issuance of its 5¾% Senior Notes in July 2019 (see Note 19–Subsequent Events.)

Committed Credit Facilities and Available Funding Arrangements

At June 30, 2019, the committed corporate credit facilities available to the Company and/or its subsidiaries were as follows: 

	Total Capacity		Outstanding Borrowings		Letters of Credit Issued		Available Capacity
Senior revolving credit facility maturing 2023 (a)	$	1,800	$	—	$	1,225	$	575

__________

^(a)  The senior revolving credit facility bears interest at one-month LIBOR plus 200 basis points and is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property.

At June 30, 2019, the Company had various uncommitted credit facilities available, under which it had drawn approximately $1 million, which bear interest at rates between 0.79% and 1.53%.

Debt Covenants

The agreements governing the Company’s indebtedness contain restrictive covenants, including restrictions on dividends paid to the Company by certain of its subsidiaries, the incurrence of additional indebtedness by the Company and certain of its subsidiaries, acquisitions, mergers, liquidations, and sale and leaseback transactions. The Company’s senior credit facility also contains a consolidated first lien leverage ratio requirement. As of June 30, 2019, the Company was in compliance with the financial covenants governing its indebtedness.