Long-term Corporate Debt and Borrowing Arrangements

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Long-term Corporate 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 Date	September 30,		December 31,
		2023		2022
4.125% euro-denominated Senior Notes	November 2024	$	—	$	321
4.500% euro-denominated Senior Notes	May 2025	264		268
4.750% euro-denominated Senior Notes	January 2026	370		375
5.750% Senior Notes	July 2027	735		732
4.750% Senior Notes	April 2028	500		500
5.375% Senior Notes	March 2029	600		600
7.250% euro-denominated Senior Notes	July 2030	423		—
Floating Rate Term Loan (a)	August 2027	1,167		1,176
Floating Rate Term Loan (b)	March 2029	722		725
Other (c)		28		18
Deferred financing fees		(43)		(44)
Total		4,766		4,671
Less: Short-term debt and current portion of long-term debt		30		27
Long-term debt		$	4,736	$	4,644

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(a)The floating rate term loan is part of our senior revolving credit facility, which is secured by pledges of capital stock of certain of our subsidiaries, and liens on substantially all of our intellectual property and certain other real and personal property. As of September 30, 2023, the floating rate term loan due 2027 bears interest at one-month Secured Overnight Financing Rate (“SOFR”) plus 175 basis points, for an aggregate rate of 7.18%. We have entered into a swap to hedge $750 million of interest rate exposure related to the floating rate term loan at an aggregate rate of 3.26%.

(b)The floating rate term loan is part of our senior revolving credit facility, which is secured by pledges of capital stock of certain of our subsidiaries, and liens on substantially all of our intellectual property and certain other real and personal property. As of September 30, 2023, the floating rate term loan due 2029 bears interest at one-month SOFR plus 350 basis points for an aggregate rate of 8.92%.

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

In July 2023, we issued €400 million of 7.25% euro-denominated Senior Notes due July 2030, at par, with interest payable semi-annually. In September 2023, we used net proceeds from the offering primarily to redeem €300 million of our outstanding 4.125% euro-denominated Senior Notes due November 2024 plus accrued interest.

Committed Credit Facilities and Available Funding Arrangements

As of September 30, 2023, the committed corporate credit facilities available to us and/or our subsidiaries were as follows: 

	Total Capacity		Outstanding Borrowings		Letters of Credit Issued		Available Capacity
Senior revolving credit facility maturing 2026 (a)	$	2,000	$	—	$	1,536	$	464

__________

(a)The senior revolving credit facility bears interest at one-month SOFR plus 175 basis points and is part of our senior credit facilities, which include the floating rate term loan and the senior revolving credit facility, and which are secured by pledges of capital stock of certain of our subsidiaries, liens on substantially all of our intellectual property and certain other real and personal property.

Debt Covenants

The agreements governing our indebtedness contain restrictive covenants, including restrictions on dividends paid to us by certain of our subsidiaries, the incurrence of additional indebtedness and/or liens by us and certain of our subsidiaries, acquisitions, mergers, liquidations, and sale and leaseback transactions. Our senior credit facility also contains a maximum leverage ratio requirement. As of September 30, 2023, we were in compliance with the financial covenants governing our indebtedness.