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Debt

3 Months Ended

Mar. 31, 2012

3. Debt

The following table summarizes the long-term debt of the Company:

	March 31,		December 31,		March 31,
	2012		2011		2011
Secured Credit Agreement:
Revolving Credit Facility:
Revolving Loans	$	55	$	—	$	—
Term Loans:
Term Loan A (170 million AUD)	177		173
Term Loan B	600		600
Term Loan C (116 million CAD)	117		114
Term Loan D (€141 million)	188		182
Fourth Amended and Restated Secured Credit Agreement:
Term Loans:
Term Loan A					93
Term Loan B					190
Term Loan C					114
Term Loan D					268
Senior Notes:
6.75%, due 2014					400
6.75%, due 2014 (€225 million)					318
3.00%, Exchangeable, due 2015	628		624		611
7.375%, due 2016	588		588		586
6.875%, due 2017 (€300 million)	401		388		425
6.75%, due 2020 (€500 million)	668		647		708
Payable to OI Inc.	250		250		250
Other	139		137		163
Total long-term debt	3,811		3,703		4,126
Less amounts due within one year	87		76		135
Long-term debt	$	3,724	$	3,627	$	3,991

On May 19, 2011, the Company’s subsidiary borrowers entered into the Secured Credit Agreement (the “Agreement”). At March 31, 2012, the Agreement included a $900 million revolving credit facility, a 170 million Australian dollar term loan, a $600 million term loan, a 116 million Canadian dollar term loan, and a €141 million term loan, each of which has a final maturity date of May 19, 2016. At March 31, 2012, the Company’s subsidiary borrowers had unused credit of $749 million available under the Agreement.

The weighted average interest rate on borrowings outstanding under the Agreement at March 31, 2012 was 2.82%.

The Company has a €280 million European accounts receivable securitization program, which extends through September 2016, subject to annual renewal of backup credit lines. Information related to the Company’s accounts receivable securitization program is as follows:

	March 31,			December 31,			March 31,
	2012			2011			2011

Balance (included in short-term loans)	$	276		$	281		$	222

Weighted average interest rate	1.42		%	2.41		%	2.85		%

The carrying amounts reported for the accounts receivable securitization programs, and certain long-term debt obligations subject to frequently redetermined interest rates, approximate fair value. Fair values for the Company’s significant fixed rate debt obligations are based on published market quotations, and are classified as Level 1 in the fair value hierarchy.

Fair values at March 31, 2012 of the Company’s significant fixed rate debt obligations are as follows:

			Indicated
	Principal		Market	Fair
	Amount		Price	Value

Senior Notes:
3.00%, Exchangeable, due 2015	$	690	98.12	$	677
7.375%, due 2016	600		112.74	676
6.875%, due 2017 (€300 million)	401		103.11	413
6.75%, due 2020 (€500 million)	668		106.02	708

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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