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Long-Term and Other Debt
 9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]  
Long-Term and Other Debt Long-Term and Other Debt
Issuance of 2025 Unsecured Notes and Redemption of 2021 Notes
On July 1, 2020, we completed the issuance of $550 million in aggregate principal amount of 8.625% senior unsecured notes due 2025 in a private offering, for which we received the total net proceeds of $543 million. We used a portion of the net proceeds to redeem all $341 million of our outstanding 2021 Notes and paid accrued and unpaid interest thereon plus related premiums, fees and costs, which redemption was completed on July 17, 2020, and are using the remaining net proceeds to fund working capital and general corporate purposes.
The 2025 Unsecured Notes were issued pursuant to an indenture dated as of July 1, 2020 (the “2025 Unsecured Notes Indenture”). We may redeem some or all of the 2025 Unsecured Notes at any time prior to July 1, 2022 at a redemption price equal to 100% of the principal amount of the 2025 Unsecured Notes plus accrued and unpaid interest, if any, to the date of the redemption plus a “make whole” premium. We may redeem some or all of the 2025 Unsecured Notes at any time on or after July 1, 2022 at the prices specified in the 2025 Unsecured Notes Indenture.
The 2025 Unsecured Notes are senior obligations of SGI, rank equally to all SGI’s existing and future senior debt and rank senior to all of SGI’s existing and future debt that is expressly subordinated to the 2025 Unsecured Notes. The 2025 Unsecured Notes are guaranteed on a senior unsecured basis by SGC and all of its wholly owned domestic restricted subsidiaries (other than SGI, the unrestricted business entities comprising our SciPlay business segment and certain immaterial subsidiaries), subject to customary exceptions.
Outstanding Debt and Finance Leases
The following table reflects our outstanding debt (in order of Priority and Maturity):
As of
September 30, 2020December 31, 2019
Final MaturityRate(s)Face valueUnamortized debt discount/premium and deferred financing costs, netBook valueBook value
Senior Secured Credit Facilities:
SGI Revolver2024variable$635 $— $635 $195 
SGI Term Loan B-52024variable4,070 (51)4,019 4,042 
SciPlay Revolver2024variable— — — — 
SGI Senior Notes:
2025 Secured Notes(1)
20255.000%1,250 (14)1,236 1,235 
2026 Secured Euro Notes(2)
20263.375%381 (4)377 359 
2025 Unsecured Notes20258.625%550 (8)542 — 
2026 Unsecured Euro Notes(2)
20265.500%293 (3)290 276 
2026 Unsecured Notes20268.250%1,100 (13)1,087 1,085 
2028 Unsecured Notes20287.000%700 (9)691 690 
2029 Unsecured Notes20297.250%500 (7)493 493 
SGI Subordinated Notes:
2021 Notes20216.625%— — — 339 
Finance lease obligations as of September 30, 2020 payable monthly through 2023 and other(3)
20234.652%8 — 8 11 
Total long-term debt outstanding$9,487 $(109)$9,378 $8,725 
Less: current portion of long-term debt(44)(45)
Long-term debt, excluding current portion$9,334 $8,680 
Fair value of debt(4)
$9,292 
(1) In connection with the February 2018 Refinancing (see Note 15 in our 2019 Form 10-K), we entered into certain cross-currency interest rate swap agreements to achieve more attractive interest rates by effectively converting $460 million of the fixed-rate, U.S. Dollar-denominated 2025 Secured Notes, including the semi-annual interest payments through October 2023, to a fixed-rate Euro-denominated debt, with a fixed annual weighted average interest rate of approximately 2.946%. These cross-currency swaps have been designated as a hedge of our net investment in certain subsidiaries.
(2) We designated a portion of our 2026 Secured Euro Notes as a net investment non-derivative hedge of our investments in certain of our international subsidiaries that use the Euro as their functional currency in order to reduce the volatility in our operating results caused by the change in foreign currency exchange rates of the Euro relative to the U.S. Dollar (see Note 12 for additional information). The total change in the face value of the 2026 Secured Euro Notes and 2026 Unsecured Euro Notes due to changes in foreign currency exchange rates since the issuance was a reduction of $39 million, of which a $24 million and $26 million loss were recognized on remeasurement of debt in the Consolidated Statements of Operations for the three and nine months ended September 30, 2020, respectively.
(3) Includes $7 million related to certain revenue transactions presented as debt in accordance with ASC 470.
(4) Fair value of our fixed rate and variable interest rate debt is classified within Level 2 in the fair value hierarchy and has been calculated based on the quoted market prices of our securities.

Debt Maturities

Maturities for our outstanding debt were as follows as of September 30, 2020:
DueTotal Principal DueSeries of DebtPrincipal Due per Series of Debt
Remainder of 2020$10 Term Loan B-5$10 
202142 Term Loan B-542 
202242 Term Loan B-542 
202342 Term Loan B-542 
20244,569 Term Loan B-53,934 
Drawn Revolving Credit Facility635 
2025 and beyond4,774 2025 Secured Notes1,250 
2025 Unsecured Notes550 
2026 Secured Euro Notes381 
2026 Unsecured Euro Notes293 
2026 Unsecured Notes1,100 
2028 Unsecured Notes700 
2029 Unsecured Notes500 

We were in compliance with the financial covenants under all debt agreements as of September 30, 2020 (see Note 1 for more detailed disclosure, including the amendment to SGI’s revolving credit facility).
For additional information regarding the terms of our credit facilities, Secured Notes and Unsecured Notes, see Note 15 in our 2019 10-K.
Loss on Debt Financing Transactions
    The following are components of the loss on debt financing transactions resulting from debt extinguishment and modification accounting for the three and nine months ended September 30, 2020 and 2019:
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Repayment and cancellation of principal balance at premium$— $— $— $50 
Unamortized debt (premium) discount and deferred financing costs, net1 — 1 10 
Total loss on debt financing transactions$1 $— $1 $60