Note 10 — FINANCING ARRANGEMENTS

Debt consists of the following instruments:



As of September 30, 2016 (In millions)	Principal Amount		Unamortized discount and debt issuance cost		Net Debt
Senior secured term loan due 2022	$	645.6	$	8.9	$	636.7
5.25% senior notes due 2023	600.0		7.4		592.6
Other debt	30.2		—		30.2
Total long-term debt	$	1,275.8	$	16.3	$	1,259.5
Less short-term and current portion of long-term debt	19.3		—		19.3
Total long-term debt, net of current portion	$	1,256.5	$	16.3	$	1,240.2



As of December 31, 2015 (In millions)	Principal Amount		Unamortized discount and debt issuance cost		Net Debt
Senior secured term loan due 2022	$	550.0	$	8.6	$	541.4
5.25% senior notes due 2023	600.0		8.3		591.7
Other debt	13.5		—		13.5
Total long-term debt	$	1,163.5	$	16.9	$	1,146.6
Less short-term and current portion of long-term debt	18.6		—		18.6
Total long-term debt, net of current portion	$	1,144.9	$	16.9	$	1,128.0

On November 12, 2015, PolyOne entered into a senior secured term loan having an aggregate principal amount of $550.0 million. One percent of the principal amount is payable annually while the remaining balance matures on November 12, 2022. On June 15, 2016, the Company entered into an amendment to its senior secured term loan. Under the terms of the amended senior secured term loan, the interest rate was reduced by 25 basis points to 275 basis points plus the greater of (i) the 1-, 2-, 3-, or 6-month LIBOR, at the Company's discretion, or (ii) 75 basis points. In connection with the amendment, the Company recognized $0.4 million of Debt extinguishment costs in our Consolidated Statements of Income. On August 3, 2016, the Company increased the senior secured term loan due 2022 by $100.0 million in connection with the acquisition of substantially all of the assets of Gordon Holdings. The weighted average annual interest rate for the senior secured term loan for the three and nine months ended September 30, 2016 was 3.50% and 3.65%, respectively. The total aggregate principal repayments as of the nine months ended September 30, 2016 was $4.4 million.

PolyOne has outstanding $600.0 million aggregate principal amount of senior notes, which mature on March 15, 2023. The senior notes bear an interest rate of 5.25% per year, payable semi-annually, in arrears, on March 15 and September 15 of each year.

The Company maintains a senior secured revolving credit facility with a maturity date of March 1, 2018, which provides a maximum borrowing facility size of $400.0 million, subject to a borrowing base with advances against certain U.S. and Canadian accounts receivable, inventory and other assets as specified in the agreement. We have the option to increase the availability under the facility to $450.0 million, subject to meeting certain requirements and obtaining commitments for such increase. The senior secured revolving credit facility has a U.S. and a Canadian line of credit. Currently there are no borrowings on the Canadian portion of the facility. Advances under the U.S. portion of our revolving credit facility bear interest, at the Company’s option, at a Base Rate or a LIBOR Rate plus an applicable margin. The Base Rate is a fluctuating rate equal to the greater of (i) the Federal Funds Rate plus one-half percent, (ii) the prevailing LIBOR Rate plus one percent, and (iii) the prevailing Prime Rate. The applicable margins vary based on the Company’s daily average excess availability during the previous quarter. The weighted average annual interest rate under this facility for the three and nine months ended September 30, 2016 was 4.00% and 3.13%. As of September 30, 2016, we had no outstanding borrowings and had availability of $381.7 million under this facility.

The agreements governing our revolving credit facility and our secured term loan, and the indentures and credit agreements governing other debt, contain a number of customary restrictive covenants that, among other things, limit our ability to: consummate asset sales, incur additional debt or liens, consolidate or merge with any entity or transfer or sell all or substantially all of our assets, pay dividends or make certain other restricted payments, make investments, enter into transactions with affiliates, create dividend or other payment restrictions with respect to subsidiaries, make capital investments and alter the business we conduct. As of September 30, 2016, we were in compliance with all covenants.

The Company also has a credit line of $16.0 million with Saudi Hollandi Bank. The credit line has an interest rate equal to the Saudi Arabia Interbank Offered Rate plus a fixed rate of 0.85% and is subject to annual renewal. Borrowings under this credit line were primarily used to fund capital expenditures related to the manufacturing facility in Jeddah, Saudi Arabia. As of September 30, 2016, letters of credit under the credit line were $0.2 million and borrowings were $12.6 million with an interest rate of 2.67%.

The estimated fair value of PolyOne’s debt instruments at September 30, 2016 and December 31, 2015 was $1,279.9 million and $1,136.2 million, respectively, compared to carrying values of $1,259.5 million and $1,146.6 million as of September 30, 2016 and December 31, 2015, respectively. The fair value of PolyOne’s debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and represent Level 2 measurements within the fair value hierarchy.