Long-Term Debt

6 Months Ended

May 31, 2021

The following summarizes our long-term debt carrying values (including unamortized discounts and premiums, valuation adjustments and debt issuance costs, where applicable) (in thousands):


	Maturity	Effective Interest Rate	May 31, 2021		November 30, 2020
Unsecured long-term debt:

2.250% Euro Medium Term Notes	July 13, 2022	—%	$	—	$	4,638
5.125% Senior Notes	January 20, 2023	4.47%	757,670		759,901
1.000% Euro Medium Term Notes	July 19, 2024	1.00%	609,952		595,700
4.850% Senior Notes (1)	January 15, 2027	4.93%	788,749		809,039
6.450% Senior Debentures	June 8, 2027	5.46%	367,824		369,057
4.150% Senior Notes	January 23, 2030	4.26%	990,044		989,574
2.750% Senior Notes (1)	October 15, 2032	2.85%	454,096		485,134
6.250% Senior Debentures	January 15, 2036	6.03%	510,611		510,834
6.500% Senior Notes	January 20, 2043	6.09%	419,611		419,826
Structured notes (2)	Various	Various	1,819,975		1,712,245
Total unsecured long-term debt			6,718,532		6,655,948
Secured long-term debt
Revolving Credit Facility			248,764		189,732
Secured Credit Facility			375,000		—
Secured Bank Loan	September 27, 2021		50,000		50,000
Total long-term debt (3)			$	7,392,296	$	6,895,680

(1)The carrying values of these senior notes includes a net gain of $52.0 million and a net loss of $47.2 million in the six months ended May 31, 2021 and 2020, respectively, associated with interest rate swaps based on designation as fair value hedges. See Note 5, Derivative Financial Instruments, for further information.

(2)These structured notes contain various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from a change in the instrument-specific credit risk presented in other comprehensive income and changes in fair value resulting from non-credit components recognized in Principal transactions revenues. A weighted average coupon rate is not meaningful, as all of the structured notes are carried at fair value.

(3)The Total Long-term debt has a fair value of $8,046.1 million and $7,575.2 million at May 31, 2021 and November 30, 2020, respectively, which would be classified as Level 2 and Level 3 in the fair value hierarchy.

During the six months ended May 31, 2021, long-term debt increased $496.6 million, primarily due to an increase of $375.0 million from our borrowings under our Secured Credit Facility (“Secured Credit Facility”), approximately $59.5 million of structured notes issuances, net of retirements, a $59.0 million net increase due to our secured Revolving Credit Facility (“Revolving Credit Facility”) and changes in instrument specific credit risk on our structured notes, partially offset by losses associated with interest rate swaps based on their designation as fair value hedges. At May 31, 2021, all of our structured notes contain various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from a change in the instrument-specific credit risk presented in other comprehensive income and changes in fair value resulting from non-credit components recognized in Principal transactions revenues. Gains and losses in the fair value of structured notes resulting from non-credit components are recognized within Other adjustments on the Consolidated Statements of Cash Flow.

During April 2021, we entered into a Revolving Credit Facility with a group of commercial banks following the maturity of our previous revolving credit facility. At May 31, 2021, borrowings under the Revolving Credit Facility amounted to $248.8 million. Interest is based on an adjusted London Interbank Offered Rate (“LIBOR”), as defined in the credit agreement. The Revolving Credit Facility contains certain covenants that, among other things, requires Jefferies Group LLC to maintain specified level of tangible net worth and liquidity amounts, and imposes certain restrictions on future indebtedness of and requires specified levels of regulated capital for certain of our subsidiaries. Throughout the period and at May 31, 2021, no instances of noncompliance with the Revolving Credit Facility covenants occurred and we expect to remain in compliance given our current liquidity and anticipated funding requirements given our business plan and profitability expectations.

During May 2021, we entered into a Secured Credit Facility agreement with a bank under which we have borrowed $375.0 million at May 31, 2021. Interest is based on a rate per annum at spreads over an Adjusted LIBOR Rate, as defined in the credit agreement. The Secured Credit Facility contains certain covenants that, among other things, require Jefferies Group LLC to maintain a specified level of tangible net worth. The covenants also require the borrower to maintain specified leverage amounts and impose certain restrictions on the borrower’s future indebtedness. At May 31, 2021, we were in compliance with all debt covenants under the Secured Credit Facility.

One of our subsidiaries has a Loan and Security Agreement with a bank for a term loan with a principal amount of $50.0 million (“Secured Bank Loan”). This Secured Bank Loan matures on September 27, 2021 and is collateralized by certain trading securities. Interest on the Secured Bank Loan is 1.25% plus LIBOR. The agreement contains certain covenants that, among other things, restrict lien or encumbrance upon any of the pledged collateral. At May 31, 2021, we were in compliance with all covenants under the Loan and Security Agreement.