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Debt
3 Months Ended
Mar. 31, 2018
Debt Disclosure [Abstract]  
Debt

Note 15. Debt

 

The following table sets forth the components of the Company’s debt at March 31, 2018 and December 31, 2017.

 

 

 

March 31, 2018

 

 

December 31, 2017

 

Senior secured term loans:

 

 

 

 

 

 

 

 

Tranche B-1 Dollar Term Loan due May 2022

 

$

921

 

 

$

923

 

Tranche B-1 Euro Term Loan due May 2022

(€393 at March 31, 2018 and €395 at December 31, 2017)

 

 

487

 

 

 

469

 

Senior unsecured notes:

 

 

 

 

 

 

 

 

6.625% due May 2023

 

 

1,158

 

 

 

1,158

 

7.000% due May 2025

 

 

750

 

 

 

750

 

6.125% due May 2023

(€295 at March 31, 2018 and December 31, 2017)

 

 

365

 

 

 

350

 

5.375% due May 2027

 

 

500

 

 

 

500

 

Capital lease obligations

 

 

2

 

 

 

3

 

Build-to-suit lease obligation

 

 

19

 

 

 

8

 

Total debt

 

 

4,202

 

 

 

4,161

 

Less: Unamortized issue discounts

 

 

(8

)

 

 

(8

)

Less: Unamortized debt issuance costs

 

 

(39

)

 

 

(41

)

Less: Current maturities of long-term debt

 

 

(14

)

 

 

(15

)

Total long-term debt, net

 

$

4,141

 

 

$

4,097

 

 

Senior Secured Credit Facilities

The Company’s credit agreement, as amended, provides for seven-year, senior secured term loans and a five-year, $750 senior secured revolving credit facility (Revolving Credit Facility). No borrowings were outstanding under the Revolving Credit Facility at March 31, 2018 or December 31, 2017; however, Chemours had $106 and $101 in letters of credit issued and outstanding under this facility at March 31, 2018 and December 31, 2017, respectively. At March 31, 2018, the effective interest rates on the class of term loans denominated in U.S. dollars (Dollar Term Loan) and the class of term loans denominated in euros (Euro Term Loan) were 4.15% and 3.00%, respectively. Also, at March 31, 2018, commitment fees on the Revolving Credit Facility were assessed at a rate of 0.20% per annum.

As discussed more fully in “Note 23 – Subsequent Events,” on April 3, 2018, the Company entered into an amended and restated credit agreement with respect to its senior secured credit facilities.

Build-to-suit Lease Obligation

In October 2017, Chemours executed a build-to-suit lease agreement to construct a new 312,000-square-foot research and development facility on the Science, Technology, and Advanced Research campus of the University of Delaware (UD) in Newark, Delaware (The Chemours Discovery Hub). The land on which The Chemours Discovery Hub will be located is leased to a third-party owner-lessor by UD, and Chemours will act as the construction agent and ultimate lessee of the facility based on the Company’s agreement with the owner-lessor. Project costs paid by the owner-lessor are reflected in the Company’s consolidated balance sheets as construction-in-progress within property, plant, and equipment, and a corresponding build-to-suit lease liability within long-term debt. Through March 31, 2018, project costs paid by the owner-lessor amounted to $19. Construction of The Chemours Discovery Hub is expected to be completed by early 2020.

Maturities

Debt maturities related to the Company’s senior secured term loans under the amended and restated credit agreement are discussed more fully in “Note 23 – Subsequent Events.” Debt maturities related to the Company’s Notes (collectively, the 2023 Notes, the 2025 Notes, the Euro Notes, and the 2027 Notes) in 2023 and beyond will be $2,773.

Debt Fair Value

The fair values of the Dollar Term Loan, the Euro Term Loan, the 2023 Notes, the 2025 Notes, the Euro Notes, and the 2027 Notes at March 31, 2018 were $922, $490, $1,217, $812, $383, and $502, respectively. The estimated fair values of the Dollar Term Loan, the Euro Term Loan, and the Notes are based on quotes received from third-party brokers, and are classified as Level 2 financial instruments in the fair value hierarchy.