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Borrowings and Other Obligations
3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Borrowings and Other Obligations Borrowings and Other Obligations
(Dollars in millions)3/31/202112/31/2020
Finance Lease Current Portion$11 $
Other Short-term Financing Arrangements— 
Short-term Borrowings$11 $13 
11.00% Exit Notes due 2024
$2,098 $2,098 
8.75% Senior Secured Notes due 2024
457 455 
Finance Lease Long-term Portion47 48 
Long-term Debt$2,602 $2,601 

Exit Notes

Upon our emergence from bankruptcy on December 13, 2019, we entered into an indenture with Deutsche Bank Trust Company Americas, as trustee and issued unsecured 11.00% Exit Notes in an aggregate principal amount of $2.1 billion maturing on December 1, 2024 (the “Exit Notes”). Interest on the Exit Notes accrues at the rate of 11.00% per annum and is payable semiannually in arrears on June 1 and December 1, which commenced on June 1, 2020.

Senior Secured Notes

On August 28, 2020, we entered into an indenture with Wilmington Trust, National Association, as trustee and collateral agent, and issued the 8.75% Senior Secured Notes in an aggregate principal amount of $500 million maturing September 1, 2024 (the “Senior Secured Notes”). Interest on the Senior Secured Notes accrues at the rate of 8.75% per annum and is payable semiannually in arrears on March 1 and September 1, commencing on March 1, 2021.

LC Credit Agreement

On December 13, 2019, we entered into the senior secured letter of credit agreement in an aggregate amount of $195 million maturing on June 13, 2024 with the lenders party thereto and Deutsche Bank Trust Company Americas as administrative agent (the “LC Credit Agreement”). The LC Credit Agreement is used for the issuance of bid and performance letters of credit of the Company and certain of its subsidiaries. On August 28, 2020, we amended the LC Credit Agreement to, among other things, increase the aggregate commitments to $215 million, modify the maturity date to May 29, 2024 and reduce the minimum liquidity covenant to $175 million.

At March 31, 2021, we had approximately $160 million in outstanding letters of credit under the LC Credit Agreement and availability of $55 million.
 
As of March 31, 2021, we had $328 million of letters of credit outstanding, consisting of the $160 million mentioned above under the LC Credit Agreement and another $168 million under various uncommitted facilities (of which there was $163 million in cash collateral held and recorded in “Restricted Cash” on our Condensed Consolidated Balance Sheets).

Accrued Interest

As of March 31, 2021 and December 31, 2020, we had approximately $80 million and $34 million, respectively in “Other Current Liabilities” primarily related to the Exit Notes and Senior Secured Notes.

Fair Value of Short and Long-term Borrowings

The carrying value of our short-term borrowings approximates their fair value due to their short maturities. These short-term borrowings are classified as Level 2 in the fair value hierarchy.

The fair value of our long-term debt fluctuates with changes in applicable interest rates among other factors. Fair value will exceed carrying value when the current market interest rate is lower than the interest rate at which the debt was originally issued
and will be less than the carrying value when the market rate is greater than the interest rate at which the debt was originally issued. The fair value of our long-term debt is classified as Level 2 in the fair value hierarchy and is established based on observable inputs in less active markets. The table below presents the fair value and carrying value of the Exit Notes and Senior Secured Notes.
3/31/202112/31/2020
(Dollars in millions)Carrying ValueFair ValueCarrying ValueFair Value
11.00% Exit Notes due 2024
$2,098 $2,018 $2,098 $1,628 
8.75% Senior Secured Notes due 2024
457 524 455 507 
Total$2,555 $2,542 $2,553 $2,135