Debt

9 Months Ended

Sep. 30, 2020

7) DEBT

Our debt consists of the following:


	At			At
	September 30, 2020			December 31, 2019
Commercial paper		$	—		$	699
4.3% Senior Notes due 2021		—			300
4.5% Senior Notes due 2021		—			499
3.875% Senior Notes due 2021		—			597
2.250% Senior Notes due 2022		35			49
3.375% Senior Notes due 2022		415			698
3.125% Senior Notes due 2022		117			194
2.50% Senior Notes due 2023		196			398
3.25% Senior Notes due 2023		141			181
2.90% Senior Notes due 2023		242			396
4.25% Senior Notes due 2023		836			1,242
7.875% Debentures due 2023		139			187
7.125% Senior Notes due 2023		35			46
3.875% Senior Notes due 2024		490			489
3.70% Senior Notes due 2024		598			598
3.50% Senior Notes due 2025		593			592
4.75% Senior Notes due 2025		1,238			—
4.0% Senior Notes due 2026		790			789
3.45% Senior Notes due 2026		123			123
2.90% Senior Notes due 2027		689			688
3.375% Senior Notes due 2028		495			494
3.70% Senior Notes due 2028		491			491
4.20% Senior Notes due 2029		493			493
7.875% Senior Debentures due 2030		831			831
4.95% Senior Notes due 2031		1,219			—
4.20% Senior Notes due 2032		969			—
5.50% Senior Debentures due 2033		426			426
4.85% Senior Debentures due 2034		87			87
6.875% Senior Debentures due 2036		1,069			1,068
6.75% Senior Debentures due 2037		75			75
5.90% Senior Notes due 2040		298			297
4.50% Senior Debentures due 2042		45			45
4.85% Senior Notes due 2042		487			486
4.375% Senior Debentures due 2043		1,114			1,109
4.875% Senior Debentures due 2043		18			18
5.85% Senior Debentures due 2043		1,232			1,231
5.25% Senior Debentures due 2044		345			345
4.90% Senior Notes due 2044		540			539
4.60% Senior Notes due 2045		589			589
4.95% Senior Notes due 2050		942			—
5.875% Junior Subordinated Debentures due 2057		514			643
6.25% Junior Subordinated Debentures due 2057		643			643
Other bank borrowings		90			—
Obligations under finance leases		32			44
Total debt (a)		19,721			18,719
Less commercial paper and other short-term borrowings		—			699
Less current portion of long-term debt		18			18
Total long-term debt, net of current portion		$	19,703		$	18,002

(a) At September 30, 2020 and December 31, 2019, the long-term debt balances included (i) a net unamortized discount of $497 million and $412 million, respectively, (ii) unamortized deferred financing costs of $109 million and $92 million, respectively, and (iii) a decrease in the carrying value of the debt relating to previously settled fair value hedges of $5 million and $6 million, respectively. The face value of our total debt was $20.33 billion and $19.23 billion at September 30, 2020 and December 31, 2019, respectively.

During the nine months ended September 30, 2020, we issued $4.50 billion of senior notes with interest rates ranging from 4.20% to 4.95% and due dates from 2025 to 2050. The net proceeds from these issuances are being used for the redemption of our long-term debt as well as for general corporate purposes. During the nine months ended September 30, 2020, we redeemed, prior to maturity, senior notes, debentures, and junior subordinated debentures totaling $2.77 billion, for an aggregate redemption price of $2.88 billion, which included third quarter redemptions of $340 million of senior notes, for a redemption price of $357 million. These redemptions resulted in a pre-tax loss on extinguishment of debt of $23 million and $126 million for the three and nine months ended September 30, 2020, respectively.

Our 5.875% junior subordinated debentures due February 2057 and 6.25% junior subordinated debentures due February 2057 accrue interest at the stated fixed rates until February 28, 2022 and February 28, 2027, respectively, on which dates the rates will switch to floating rates based on three-month LIBOR plus 3.895% and 3.899%, respectively, reset quarterly. These debentures can be called by us at any time after the expiration of the fixed-rate period.

Commercial Paper

In January 2020, our commercial paper program was increased to $3.50 billion from $2.50 billion in conjunction with the new $3.50 billion revolving credit facility described below. At September 30, 2020, we had no outstanding commercial paper borrowings under our commercial paper program. At December 31, 2019, we had $699 million of outstanding commercial paper borrowings with maturities of less than 90 days and a weighted average interest rate of 2.07%.

Credit Facility

In January 2020, the $2.50 billion revolving credit facility held by CBS prior to the Merger (the “CBS Credit Facility”), with a maturity in June 2021, was terminated and the $2.50 billion revolving credit facility held by Viacom prior to the Merger (the “Viacom Credit Facility”), with a maturity in February 2024, was amended and restated to a $3.50 billion revolving credit facility with a maturity in January 2025 (the “Credit Facility”). The Credit Facility is used for general corporate purposes and to support commercial paper borrowings, if any. We may, at our option, also borrow in certain foreign currencies up to specified limits under the Credit Facility. Borrowing rates under the Credit Facility are determined at the time of each borrowing and are generally based on either the prime rate in the U.S. or LIBOR plus a margin based on our senior unsecured debt rating, depending on the type and tenor of the loans entered. The Credit Facility has one principal financial covenant that requires our Consolidated Total Leverage Ratio to be less than 4.5x (which we may elect to increase to 5.0x for up to four consecutive quarters following a qualified acquisition) at the end of each quarter. The Consolidated Total Leverage Ratio reflects the ratio of our Consolidated Indebtedness at the end of a quarter, to our Consolidated EBITDA (each as defined in the amended credit agreement) for the trailing twelve-month period. We met the covenant as of September 30, 2020.

At September 30, 2020, we had no borrowings outstanding under the Credit Facility and the remaining availability under the Credit Facility, net of outstanding letters of credit, was $3.50 billion.

Other Bank Borrowings

At September 30, 2020, we had $90 million of bank borrowings with a weighted average interest rate of 3.50% under Miramax’s $300 million credit facility, which matures in April 2023.