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Indebtedness
3 Months Ended
Apr. 02, 2022
Debt Disclosure [Abstract]  
Indebtedness INDEBTEDNESS
Subsequent to April 2, 2022 we refinanced our existing revolving and term loan agreements, as discussed below, and entered into new senior secured credit facilities. Refer to Note 18 for more information regarding our new senior secured credit facilities.

Total borrowings are summarized as follows (in millions):
April 2,
2022
December 31,
2021
Term loan
2019 Term loan due August 15, 2022(1)
$600.0 $600.0 
Notes and Bonds
CouponDue
5.105%
July 28, 2023(2)
$149.3 $153.5 
4.000%November 15, 2023215.6 215.6 
3.900%December 15, 2024700.0 700.0 
4.375%March 15, 2026700.0 700.0 
3.900%
June 15, 2030(3)
750.0 750.0 
5.300%November 15, 204390.5 90.5 
4.900%December 15, 2044303.9 303.9 
Total notes and bonds2,909.3 2,913.5 
Other financing24.3 25.8 
Unamortized premium (discount), net(5.2)(4.8)
Deferred financing fees(13.2)(14.0)
Total borrowings outstanding3,515.2 3,520.5 
Current indebtedness(4.6)(603.8)
Total long-term debt less current portion$3,510.6 $2,916.7 

    (1) Reported as long-term associated with refinancing after April 2, 2022. Refer to Note 18.
    (2) Debt denominated in euros subject to fluctuations in the euro-to-U.S. dollar exchange rate.
    (3) The coupon rate noted above is that as of December 31, 2021, following a step up in rate from 3.150% to 3.900%, effective December 16, 2021. Due to a credit ratings downgrade by S&P and Moody's in the first quarter of 2022, the interest rate has stepped up from 3.900% to 4.400% starting after June 15, 2022.
    
Revolving Credit Agreements

On March 8, 2018, we entered into a $1.0 billion revolving credit agreement maturing on March 8, 2023 (the "2018 Revolver"). There were no borrowings outstanding under the 2018 Revolver as of April 2, 2022 or December 31, 2021.

Term Loan and Notes

In August 2019, we refinanced a prior term loan with the proceeds of a $600.0 million term loan, maturing on August 15, 2022 (the "2019 Term Loan"). We had $600.0 million outstanding under our 2019 Term Loan as of both April 2, 2022 and December 31, 2021.

Waiver and Amendment of Debt Covenants

We are subject to financial covenants in the 2018 Revolver and 2019 Term Loan, including a maximum leverage ratio covenant, which previously required us to maintain a ratio of Consolidated Net Indebtedness to Consolidated EBITDA (as such terms are defined in such credit agreements) of not more than 3.75 to 1.00 at the end of each fiscal quarter. On December 3, 2021, we and Perrigo Finance entered into Amendment No. 2 to our 2019 Term Loan (the “Term Loan Amendment”) and Amendment No. 3 to our 2018 Revolver (the “Revolver Amendment”) with the lenders under each such facility, pursuant to which the maximum leverage ratio was
increased to 5.75 to 1.00 for the fourth quarter of 2021 and the first quarter of 2022, returning to 3.75 to 1.00 beginning with the second quarter of 2022. If we consummate certain qualifying acquisitions in the second quarter of 2022 or any subsequent quarter during the term of the loan, the maximum ratio would increase to 4.00 to 1.00 for such quarter. The amendments also modified certain provisions related to restricted payments to account for the amended leverage ratio covenant. Finally, the Revolver Amendment contains amendments related to the replacement of LIBOR with the Sterling Overnight Index Average (SONIA) as the benchmark for borrowings under the 2018 Revolver in Pounds Sterling. As of April 2, 2022, we are in compliance with all the covenants under our debt agreements.

Other Financing

We have overdraft facilities available that we use to support our cash management operations. We report any balances outstanding in the above table under "Other financing". There were no borrowings outstanding under the facilities as of April 2, 2022 or December 31, 2021.

We have financing leases that are reported in the above table under "Other financing" (refer to Note 10).