XML 33 R18.htm IDEA: XBRL DOCUMENT v3.24.3
Debt
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Debt
9. Debt
Long-term debt was:
September 30December 31September 30
in $ millionsEffective interest rate202420232023
Long-term debt
(U.S. Dollar denominated unless otherwise noted)
0.875% euro Senior Notes due 2023
0.92 %––530
1.875% euro Senior Notes due 2024
2.02 %–663636
3.875% Senior Notes due 2025
3.93 %1,2501,2501,250
1.250% euro Senior Notes due 2026
1.25 %840829795
3.400% Senior Notes due 2027
3.49 %600600600
4.000% euro Senior Notes due 2027
4.13 %560553530
3.950% Senior Notes due 2028
4.07 %900900900
1.375% euro Senior Notes due 2028
1.42 %672663636
5.200% Senior Notes due 2029
5.30 %750--
4.125% Sterling Senior Notes due 2029
4.22 %536509490
1.625% euro Senior Notes due 2030
1.72 %840829795
4.000% euro Senior Notes due 2031
4.10 %840829795
6.400% Senior Notes due 2033 (i)
6.43 %213213213
5.400% Senior Notes due 2034
5.52 %750––
4.250% euro Senior Notes due 2035
4.38 %840829795
5.125% Senior Notes due 2045
5.25 %500500500
4.400% Senior Notes due 2047
4.44 %400400400
4.500% Senior Notes due 2048
4.63 %600600600
PHP interest bearing loan due 20276.05 %407396400
AUD interest bearing loan due 20295.10 %565––
U.S. Dollar Commercial Paper5.47 %1,2951,002260
Euro Commercial Paper3.69 %383–159
Other66376
Unamortized discounts and debt issuance costs(70)(67)(68)
Total long-term debt (ii)13,73711,53511,222
Less: current portion of long-term debt (iii)(3,065)(1,759)(1,687)
Long-term debt10,6729,7769,535
(i)    The $300 million 6.400% Senior Notes were issued in September 2003, and at the time of issuance the Senior Notes were partially swapped to floating interest rates. In August 2009 and December 2010, $87 million of the issued Senior Notes were acquired by the Company as part of liability management exercises undertaken and the interest rate hedge was closed out. The remaining fair value hedge adjustment on the hedged item in the Condensed Consolidated Balance Sheets was $27 million, $30 million, and $30 million at September 30, 2024, December 31, 2023, and September 30, 2023, respectively.
(ii)    Of the Company’s nominal fixed rate debt at September 30, 2024, December 31, 2023, and September 30, 2023, $1,375 million was hedged to daily compounded Secured Overnight Financing Rate (SOFR) using interest rate swaps. Of the Company’s nominal floating rate debt at September 30, 2024, December 31, 2023, and September 30, 2023, AUD300 million, AUDnil million, and AUDnil million, respectively, was hedged to fixed rates using interest rate swaps.
(iii)    Excludes borrowings from bank overdrafts of $153 million, $107 million and $173 million, which are recorded within Current portion of long-term debt in the Condensed Consolidated Balance Sheets at September 30, 2024, December 31, 2023, and September 30, 2023, respectively.
Senior Notes:
The Senior Notes are issued by wholly owned subsidiaries of the Company and carry full and unconditional guarantees from the Company, as defined in the indentures that govern them. These Senior Notes represent senior unsecured obligations of the Company and hold an equal standing in payment priority with the Company's existing and future senior unsubordinated indebtedness.
With the exception of the 6.400% Senior Notes due 2033, all other Senior Notes can be redeemed before their respective par call dates, at a make-whole redemption price. Post par call dates and before the respective maturity dates, the Senior Notes can be redeemed at a price equal to 100% of the principal amount.
In the event of a change-of-control repurchase event, the Company is obligated to offer repurchase options for the 3.875% Senior Notes due 2025, 3.400% Senior Notes due 2027, 3.950% Senior Notes due 2028, 5.200% Senior Notes due 2029, 5.400% Senior Notes due 2034, 5.125% Senior Notes due 2045, 4.400% Senior Notes due 2047, and 4.500% Senior Notes due 2048. This repurchase involves a cash payment equal to 101% of the principal amount, along with any accrued and unpaid interest.
If the Company's credit rating falls below investment-grade, the Company would be required to make an additional coupon step-up payment on the 3.875% Senior Notes due 2025 and 5.125% Senior Notes due 2045. The increase is 25 basis points per rating notch per agency, capped at 100 basis points per agency. However, this coupon step-up would reverse if the Company returns to an investment-grade rating.
Australian (AUD) Debt:
In July 2024, the Company acquired Adbri Ltd who have committed credit agreements with a range of banks and credit institutions totaling AUD940 million. The Company does not provide a guarantee for these facilities. The funds drawn from these facilities carry a combination of fixed and floating interest rates.
Philippines (PHP) Debt:
In March 2017, the Company's subsidiary, Republic Cement & Building Materials, Inc., entered into a credit arrangement with the Bank of the Philippine Islands. The Company does not provide a guarantee for this facility. The initial credit agreement provided for total commitments of PHP12.5 billion for a ten-year term, which was later expanded to PHP22.5 billion. The funds drawn from this facility carry a combination of fixed and floating interest rates.
Bank Credit:
The Company maintains a multi-currency Revolving Credit Facility (the 'RCF') with a syndicate of lenders. The RCF offers a senior unsecured revolving credit facility of €3,500 million over five years, maturing May 11, 2029. The terms of the facility allow for one further plus one year extension option which, if successfully exercised with the agreement of the Lenders, would extend the maturity to May 11, 2030. Borrowings under the RCF bear interest at rates based upon an underlying base rate, plus a margin determined in accordance with a ratings-based pricing grid. Base rates include SOFR for U.S. Dollar, Euro Interbank Offer Rate (EURIBOR) for euros, Sterling Overnight Index Average (SONIA) for Sterling, and Swiss Average Rate Overnight (SARON) for Swiss Francs, respectively. A commitment fee is payable on a quarterly basis based on a percentage of the applicable margin and calculated on the daily undrawn amount of the facility.
The deferred financing costs associated with the RCF were $6 million at September 30, 2024. The total potential credit available through this arrangement is €3,500 million, inclusive of the ability to issue letters of credit.
At September 30, 2024, December 31, 2023, and September 30, 2023, there were no outstanding borrowings or letters of credit issued under this facility and the undrawn committed facilities available to be drawn by the Company at September 30, 2024 were $3,919 million (€3,500 million equivalent).
The RCF includes customary terms and conditions for investment-grade borrowers. There are no financial covenants.
At September 30, 2024, the Company had a $4,000 million U.S. Dollar Commercial Paper Program and a €1,500 million Euro Commercial Paper Program. The purpose of these programs is to provide short-term liquidity as required. The Company’s RCF supports the commercial paper programs with a separate €750 million swingline sublimit which allows for same-day drawing in either euro or U.S. Dollar. The amount of commercial paper outstanding does not reduce available capacity under the RCF. Commercial paper borrowings may vary during the period, largely as a result of fluctuations in funding requirements.
The long-term debt maturities, net of the unamortized discounts and debt issuance costs, for the periods subsequent to September 30, 2024 are as follows:
in $ millionsRemainder of 202420252026202720282029 and thereafterTotal
Long-term debt maturities1,7571,3341,6121,1591,5596,31613,737