Long-Term Debt

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Long-Term Debt

NOTE 8 - LONG-TERM DEBT

The following table summarizes Occidental's outstanding debt, including finance lease liabilities:

millions	June 30, 2020		December 31, 2019
Total borrowings at face value	$	37,401	$	37,401
Adjustments to book value:
Unamortized premium, net	868		914
Debt issuance costs	(110)		(125)
Long-term finance leases	301		347
Current finance leases	34		51
Total debt and finance leases	38,494		38,588
Less current maturities of long-term debt	(2,460)		(51)
Long-term debt, net	$	36,034	$	38,537

DEBT ACTIVITY

On March 23, 2020, Occidental amended the sole financial covenant in its revolving credit facility (RCF) and variable rate bonds due 2021 by revising the definition of "Total Capitalization" within each agreement to exclude any non-cash write-downs, impairments and related charges occurring after September 30, 2019.

In July 2020, Occidental issued $500 million aggregate principal amount of 8.000% senior notes due 2025, $500 million aggregate principal amount of 8.500% senior notes due 2027 and $1.0 billion aggregate principal amount of 8.875% senior notes due 2030 (July 2020 Notes). Interest on each series of notes will be paid semi-annually in

arrears on July 15 and January 15 of each year, commencing on January 15, 2021.

Concurrent with the above issuance of the July 2020 Notes Occidental utilized the $1,985 million in net proceeds from the July 2020 Notes to fund a cash tender offer to purchase a portion of the outstanding principal of the senior notes listed below.

millions	Principal Amount Accepted
4.1% senior notes due February 2021	$	943
Variable rate bonds due February 2021	$	473
4.85% senior notes due March 2021	$	530
2.6% senior notes due August 2021	$	51
Total	$	1,997

FAIR VALUE OF DEBT

The estimated fair value of Occidental’s debt as of June 30, 2020, was $31.4 billion. The majority of Occidental's debt is classified as Level 1, with $2.3 billion classified as Level 2. At December 31, 2019, the estimated fair value of Occidental's debt was $38.8 billion.