Financing Arrangements and Debt

12 Months Ended

Dec. 31, 2020

Note H – Financing Arrangements and Debt

As of December 31, 2020, the Company has a $1.6 billion revolving credit facility (RCF). The RCF is a senior unsecured guaranteed facility which expires in November 2023. At December 31, 2020, the Company had $200.0 million outstanding borrowings under the RCF and $3.8 million of outstanding letters of credit, which reduces the borrowing capacity of the RCF. At December 31, 2020, the interest rate in effect on borrowings under the facility would have been 1.84%. At December 31, 2020, the Company was in compliance with all covenants related to the RCF.

In May 2019, the Company entered into a $500 million term loan credit facility (the New Term Credit Facility). The New Term Credit Facility was a senior unsecured guaranteed facility with an original maturity date of December 2, 2019. The covenants within the New Term Credit Facility were substantially consistent with those in the Company’s revolving credit facility (see RCF above), and borrowings under the New Term Credit Facility bore interest at comparable rates to those incurred under the 2018 facility. In July 2019, the Company closed the previously announced Malaysia divestiture, repaid and terminated the New Term Credit Facility.

In November 2019, the Company sold $550 million of new notes that bear interest at a rate of 5.875% and mature on December 1, 2027. The Company incurred transaction costs of $7.4 million on the issuance of these new notes. The Company will pay interest semi-annually on June 1 and December 1 of each year, beginning June 1, 2020. The proceeds of the $550 million notes were used to repurchase and cancel $239.7 million of the Company’s 4.00% notes due 2022 and $281.6 million of the Company’s 4.45% notes due 2022 (originally issued as 3.70% notes due 2022, see table footnote below) (collectively the 2022 Notes) during November and December. The cost of the debt extinguishment of $32.1 million is included in Interest expense, net on the Consolidated Statement of Operations for the year ended December 31, 2019. The cash costs of $26.6 million are shown as a financing activity on the Consolidated Statement of Cash Flows for the year ended December 31, 2019.


	December 31,
(Thousands of dollars)	2020		2019
Notes payable
4.00% notes, due June 2022	$	259,291	260,251
4.95% notes, due December 2022 ¹	317,067		318,417
6.875% notes, due August 2024	542,428		550,000
5.75% notes, due August 2025	548,675		550,000
5.875% notes, due December 2027	543,249		550,000
7.05% notes, due May 2029	250,000		250,000
6.375% notes, due December 2042 ¹	349,000		350,000

Total notes payable	2,809,710		2,828,668
Unamortized debt issuance cost and discount on notes payable	(21,643)		(25,287)
Total notes payable, net of unamortized discount	2,788,067		2,803,381


Senior Unsecured Revolving Credit Facility	200,000		—

Total long-term debt	$	2,988,067	2,803,381

1 Coupon rate may fluctuate 25 basis points if rating is periodically downgraded or upgraded by S&P and Moody’s.

The amount of long-term debt repayable over each of the next five years and thereafter are as follows: nil in 2021, $576.4 million in 2022, $200.0 million in 2023, $542.4 million in 2024, $548.7 million in 2025 and $1.14 billion thereafter.