Debt

9 Months Ended

Sep. 30, 2011

Debt

Debt

4.      Debt

Based on borrowing rates currently available to us for loans with similar terms and maturities, the fair value of long-term debt was $2.6 billion at September 30, 2011 and $2.4 billion at December 31, 2010.

Third Quarter

In the third quarter of 2011, Corning borrowed approximately $34 million on the credit facility that a wholly-owned subsidiary entered into in the second quarter of 2011.

In the third quarter of 2010, we issued $400 million of 5.75% senior unsecured notes and $300 million of 4.25% senior unsecured notes for net proceeds of approximately $394 million and $295 million, respectively.  The 5.75% notes mature on August 15, 2040 and the 4.25% notes mature on August 15, 2020.  We may redeem these notes at any time.

In the third quarter of 2010, we repurchased $126 million of 6.2% senior unsecured notes due March 15, 2016 and $100 million of 5.9% senior unsecured notes due March 15, 2014.  The net carrying amount of the debt repurchased was $234 million.  We recognized a pre-tax loss of $30 million upon early redemption of these notes.

Second Quarter

In the second quarter of 2011, a wholly-owned subsidiary entered into a credit facility that allows Corning to borrow up to Chinese Renminbi (RMB) 4.0 billion, or approximately $627 million when translated to United States Dollars.  Corning may request advances during the eighteen month period beginning on June 30, 2011 (the "Availability Period").  Corning will repay the aggregate principal amount and accrued interest outstanding at the end of the Availability Period in six installments, with the final payment due five years from the date of the first advance.

First Quarter

In the first quarter of 2010, Corning repaid $58 million of debt, which included the redemption of $48 million principal amount of our 6.25% notes due February 18, 2010.