Debt

The following table summarizes components of our debt:



	July 1, 2016					April 1, 2016
	Amount			Effective Interest Rate		Amount			Effective Interest Rate
	(Dollars in millions)
2.75% Senior Notes due June 15, 2017	$	600		2.79	%	$	600		2.79	%
Senior Term Facility due May 10, 2019	1,000			LIBOR plus ⁽¹⁾		—			—	%
4.20% Senior Notes due September 15, 2020	750			4.25	%	750			4.25	%
2.50% Convertible Senior Notes due April 1, 2021	500			3.76	%	500			3.76	%
3.95% Senior Notes due June 15, 2022	400			4.05	%	400			4.05	%
Total principal amount	3,250					2,250
Less: Unamortized discount and issuance costs	(46		)			(43		)
Total debt	3,204					2,207
Less: Current portion, net of issuance costs	(599		)			—
Total long-term debt	$	2,605				$	2,207

⁽¹⁾See revolving credit facility below for details related to the interest on borrowings.

Revolving credit facility

On May 10, 2016, we terminated our existing $1.0 billion senior revolving credit facility and entered into a new $2.0 billion senior unsecured credit facility. The new agreement provides for a 3-year term loan facility in an aggregate amount of $1.0 billion (the “Term Facility”), which is set to expire on May 10, 2019, and a 5-year revolving credit facility in an aggregate principal amount not to exceed $1.0 billion (the “Revolving Facility”), which is set to expire on May 10, 2021. We may, with the approval of the lenders, extend the maturity date of the Revolving Facility up to a maximum of 2 years. There were no borrowings outstanding under the old credit agreement at the time it was terminated. The proceeds of the new credit agreement may be used for general corporate purposes, acquisitions, and stock repurchases under Company-approved stock repurchase programs.

Borrowings under the new credit agreement bear interest based on (i) the greater of the bank’s Prime Rate, the Federal Funds Rate, or the London Interbank Offered Rate (“LIBOR”) plus a margin based on the Company’s debt ratings or (ii) in the case of Eurodollar borrowings, on adjusted LIBOR plus a margin as defined in the credit agreement. The Company is obliged to pay commitment fees at a rate based on the Company's debt ratings as determined by S&P Global Ratings and Moody's Investors Service, Inc. Interest and commitment fees are payable in arrears quarterly. The new credit agreement requires us to comply with certain covenants, including a maximum consolidated leverage ratio and minimum interest coverage ratio as defined in the credit agreement. At July 1, 2016, we had $1.0 billion outstanding under the Term Facility and no amounts borrowed under the Revolving Facility. As of July 1, 2016, the Company was in compliance with all covenants.