Debt

9 Months Ended

Sep. 30, 2020

Debt

Debt

15.    Debt

Long-term debt consisted of the following:

	September 30,		December 31,
($ in millions)	2020		2019
Senior Notes
4.375% due December 2020	$	—	$	1,000
3.50%, euro denominated, due December 2020		—		449
5.00% due March 2022		750		750
4.00% due November 2023		1,000		1,000
4.375%, euro denominated, due December 2023		820		785
0.875%, euro denominated, due March 2024		879		841
5.25% due July 2025		1,000		1,000
4.875% due March 2026		750		750
1.50%, euro denominated, due March 2027		645		617
2.875%, due August 2030		1,300		—
Senior Credit Facility (at variable rates)
Term A loan, due March 2024		593		653
Other (including debt issuance costs)		(57)		(54)
		7,680		7,791
Less: Current portion of long-term debt		(1)		(1,454)
	$	7,679	$	6,337

The company’s senior credit facilities include long-term multi-currency revolving facilities that mature in March 2024. The revolving facilities provide the company with up to the U.S. dollar equivalent of $1.75 billion. At September 30, 2020, taking into account outstanding letters of credit, $1.7 billion was available under the company’s existing long-term, revolving credit facilities. In addition to these facilities, the company had approximately $990 million of short-term uncommitted credit facilities available at September 30, 2020, of which $30 million was outstanding and due on demand. At December 31, 2019, the company had $26 million outstanding under short-term uncommitted credit facilities.

In the third quarter of 2020, Ball issued $1.3 billion of 2.875% senior notes due in 2030. In the first quarter of 2020, Ball redeemed the outstanding euro-denominated 3.50% senior notes due in 2020 in the amount of €400 million and the outstanding 4.375% senior notes due in 2020 in the amount of $1 billion. The company recorded debt extinguishment costs of $40 million in the first quarter of 2020.

The fair value of long-term debt was estimated to be $8.1 billion at September 30, 2020, and $8.3 billion at December 31, 2019. The fair value reflects the market rates at each period end for debt with credit ratings similar to the company’s ratings and is classified as Level 2 within the fair value hierarchy. Rates currently available to the company for loans with similar terms and maturities are used to estimate the fair value of long-term debt based on discounted cash flows.

The U.S. note agreements and bank credit agreement contain certain restrictions relating to dividend payments, share repurchases, investments, financial ratios, guarantees and the incurrence of additional indebtedness. In August 2020, Ball amended certain of its credit agreements which, among other things, modified the most restrictive of the company’s debt covenants. This covenant requires the company to maintain a leverage ratio (as defined) of no greater than 5.0 times as of September 30, 2020, which changes to 4.5 times as of December 31, 2022. The company was in compliance with all loan agreements and debt covenants at both September 30, 2020, and December 31, 2019, and it has met all debt payment obligations.