Notes Payable and Long-Term Debt

3 Months Ended

Mar. 31, 2020

As of March 31, 2020 and December 31, 2019, the Company had short-term and long-term debt outstanding as follows:



	March 31,		December 31,
(in millions)	2020		2019
Short-term debt
Short-term borrowings	$	34	$	34

Long-term debt
4.625% Senior notes due 09/15/20 ($250 million par value)	251		251
1.80% Senior notes due 11/7/22 (€500 million par value)	549		558
3.375% Senior notes due 03/15/25 ($500 million par value)	497		497
7.125% Senior notes due 02/15/29 ($121 million par value)	119		119
4.375% Senior notes due 03/15/45 ($500 million par value)	494		494
Term loan facilities and other	6		7
Total long-term debt	1,916		1,926
Less: current portion	252		252
Long-term debt, net of current portion	$	1,664	$	1,674

The Company may utilize uncommitted lines of credit for short-term working capital requirements. As of March 31, 2020 and December 31, 2019, the Company had $34 million in borrowings under these facilities, which are classified in Notes payable and short-term debt on the Condensed Consolidated Balance Sheets.

The weighted average interest rate on short-term borrowings outstanding as of March 31, 2020 and December 31, 2019 was 2.3% and 2.5%, respectively. The weighted average interest rate on all borrowings outstanding, including the effects of outstanding swaps, as of March 31, 2020 and December 31, 2019 was 2.8%.

On March 13, 2020, the Company amended its multi-currency revolving credit facility by increasing the size of the facility from $1.2 billion to $1.5 billion and by extending the maturity until March 13, 2025. The multi-currency revolving credit agreement provides for the facility to automatically increase to $2.0 billion upon the closing of the anticipated acquisition of Delphi Technologies PLC. Additionally, the agreement allows the Company the ability to increase the facility by $1.0 billion with bank group approval. The credit agreement contains customary events of default and one key financial covenant which is a debt to Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") ratio. The Company was in compliance with the financial covenant at March 31, 2020. At March 31, 2020 and December 31, 2019, the Company had no outstanding borrowings under this facility.

The Company's commercial paper program allows the Company to issue short-term, unsecured commercial paper notes up to a maximum aggregate principal amount outstanding, which increased from $1.2 billion to $1.5 billion effective March 13, 2020. Under this program, the Company may issue notes from time to time and use the proceeds for general corporate purposes. The Company had no outstanding borrowings under this program as of March 31, 2020 and December 31, 2019.

The total current combined borrowing capacity under the multi-currency revolving credit facility and commercial paper program cannot exceed $1.5 billion.

As of March 31, 2020 and December 31, 2019, the estimated fair values of the Company’s senior unsecured notes totaled $1,945 million and $2,025 million, respectively. The estimated fair values were

$35 million higher than their carrying value at March 31, 2020 and $106 million higher than their carrying value at December 31, 2019. Fair market values of the senior unsecured notes are developed using observable values for similar debt instruments, which are considered Level 2 inputs as defined by ASC Topic 820. The carrying values of the Company's multi-currency revolving credit facility and commercial paper program approximates fair value. The fair value estimates do not necessarily reflect the values the Company could realize in the current markets.

The Company had outstanding letters of credit of $28 million at March 31, 2020 and December 31, 2019. The letters of credit typically act as guarantees of payment to certain third parties in accordance with specified terms and conditions.