Borrowings

12 Months Ended

Dec. 31, 2019

BORROWINGS

Short-term and long-term borrowings are comprised of the following at December 31:



	2019				2018
	Amount		Weighted Average Rate⁽¹⁾		Amount		Weighted Average Rate⁽¹⁾
Short-term borrowings
Short-term borrowings from GE	$	273	n/a		$	896	n/a
Other short-term borrowings	48		4.8	%	46		9.9	%
Total short-term borrowings	321				942

Long-term borrowings
3.2% Senior Notes due August 2021 ⁽²⁾	—		n/a		523		2.5	%
2.773% Senior Notes due December 2022	1,246		2.9	%	1,245		2.9	%
8.55% Debentures due June 2024 ⁽²⁾	127		4.1	%	131		4.1	%
3.337% Senior Notes due December 2027	1,343		3.4	%	1,343		3.4	%
6.875% Notes due January 2029 ⁽²⁾	289		3.9	%	294		3.9	%
3.138% Senior Notes due November 2029	522		3.2	%	—		n/a
5.125% Notes due September 2040 ⁽²⁾	1,301		4.2	%	1,306		4.2	%
4.080% Senior Notes due December 2047	1,337		4.1	%	1,336		4.1	%
Other long-term borrowings	136		3.4	%	107		5.3	%
Total long-term borrowings	6,301				6,285
Total borrowings	$	6,622			$	7,227


⁽¹⁾	Weighted average effective interest rate is based on the carrying value including step-up adjustments, as applicable, recorded upon the acquisition of BHI.


⁽²⁾	Represents long-term fixed rate debt obligations assumed in connection with the acquisition of BHI, net of amounts repurchased subsequent to the closing of the Transactions.

In November 2019, BHGE LLC issued $525 million of 3.138% Senior Notes due November 2029. These Senior Notes are presented net of issuance costs of $3 million in our consolidated statements of financial position. We used the proceeds from this offering to repurchase all of our outstanding 3.2% Senior Notes due August 2021. The total cash consideration paid for this repurchase excluding interest was $526 million, resulting in a loss of $7 million which was recorded in the "Interest expense, net" caption of the consolidated and combined statements of income (loss).

The estimated fair value of total borrowings at December 31, 2019 and 2018 was $6,847 million and $6,629 million, respectively. For a majority of our borrowings the fair value was determined using quoted period-end market prices. Where market prices are not available, we estimate fair values based on valuation methodologies using current market interest rate data adjusted for our non-performance risk.

Maturities of debt for each of the five years in the period ending December 31, 2024, and in the aggregate thereafter, are listed in the table below:



	2020		2021		2022		2023		2024		Thereafter
Total debt	$	321	$	40	$	1,275	$	28	$	148	$	4,810

In December 2019, BHGE LLC entered into a $3 billion committed unsecured revolving credit facility (the 2019 Credit Agreement) with commercial banks maturing in December 2024. The 2019 Credit Agreement contains

certain customary representations and warranties, certain customary affirmative covenants and certain customary negative covenants. Upon the occurrence of certain events of default, BHGE LLC's obligations under the 2019 Credit Agreement may be accelerated. Such events of default include payment defaults to lenders under the 2019 Credit Agreement and other customary defaults. No such events of default have occurred. In connection with BHGE LLC’s entry into the 2019 Credit Agreement, BHGE LLC terminated its then-existing five-year committed $3 billion revolving credit agreement dated as of July 3, 2017 (the 2017 Credit Agreement). During 2019 and 2018, there were no borrowings under the 2019 or 2017 Credit Agreement.

BHGE LLC has a commercial paper program under which it may issue from time to time up to $3 billion in commercial paper with maturities of no more than 397 days. At December 31, 2019 and 2018, we had no borrowings outstanding under the commercial paper program.

Concurrent with the Transactions associated with the acquisition of BHI on July 3, 2017, Baker Hughes Co-Obligor, Inc. became a co-obligor, jointly and severally with BHGE LLC, on our registered debt securities. This co-obligor is a 100%-owned finance subsidiary of BHGE LLC that was incorporated for the sole purpose of serving as a co-obligor of debt securities and has no assets or operations other than those related to its sole purpose. Baker Hughes Co-Obligor, Inc. is also a co-obligor of the $3,950 million senior notes issued in December 2017 by BHGE LLC in a private placement and subsequently registered in January 2018.

Certain Senior Notes contain covenants that restrict BHGE LLC's ability to take certain actions, including, but not limited to, the creation of certain liens securing debt, the entry into certain sale-leaseback transactions and engaging in certain merger, consolidation and asset sale transactions in excess of specified limits.

See "Note 19. Related Party Transactions" for additional information on the short-term borrowings from GE, and see "Note 17. Financial Instruments" for additional information about borrowings and associated swaps.