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Debt and Other Financing
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Debt and Other Financing Debt and Other Financing
Debt
Debt at December 31 consisted of the following:
20212020
Debt maturing within one year:
Short term debt $32.6 $28.0 
Loans from affiliates of Natura &Co371.7 1,008.6 
Total$404.3 $1,036.6 
Long-term debt:
Finance lease liabilities1.3 1.5 
5.00% Notes, due March 2023
460.8 460.1 
6.95% Notes, due March 2043
213.9 213.8 
Loans from affiliates of Natura &Co, due 2028736.3 — 
Total1,412.3 675.4 
The carrying value of long-term debt is presented net of debt issuance costs and includes any related discount or premium, as applicable.
Unsecured Notes
In March 2013, we issued, in a public offering, $500.0 principal amount of 4.60% Notes due March 15, 2020 (the "4.60% Notes"), $500.0 principal amount of 5.00% Notes due March 15, 2023 (the "5.00% Notes") and $250.0 principal amount of 6.95% Notes due March 15, 2043 (the "6.95% Notes") (collectively, the "2013 Notes"). In March 2008, we issued $350.0 principal amount of 6.50% Notes due March 1, 2019 (the "6.50% Notes"). Interest on the 2013 Notes is payable semi-annually on March 15 and September 15 of each year.
The indenture governing the 2013 Notes contains interest rate adjustment provisions depending on the credit ratings assigned to the 2013 Notes with S&P and Moody's. As described in the indenture, the interest rates on the 2013 Notes increase or decrease by .25% for each one-notch movement below investment grade on each of the credit ratings assigned to the 2013 Notes by S&P or Moody's. These adjustments are limited to a total increase of 2% above the respective interest rates in effect on the date of issuance of the 2013 Notes.
In August 2016, we completed cash tender offers which resulted in a reduction of principal of $68.1 of our 6.50% Notes and $50.1 of our 4.60% Notes.
In the fourth quarter of 2016, we repurchased $44.0 of our 6.50% Notes, $40.0 of our 4.60% Notes, $11.1 of our 5.00% Notes and $6.2 of our 6.95% Notes.
In June 2018, we prepaid the remaining principal amount of our 6.50% Notes. The prepayment price was equal to the remaining principal amount of $237.8, plus a make-whole premium of $6.2 and accrued interest of $4.6. In connection with the prepayment, we incurred a loss on extinguishment of debt of $2.9 before tax in the second quarter of 2018 consisting of the $6.2 make-whole premium, and the write-off of $.3 of debt issuance costs and discounts related to the initial issuances of the notes that were prepaid, partially offset by a write off of a deferred gain of $3.6 associated with the March 2012 interest-rate swap agreement termination.
In the fourth quarter of 2018, we repurchased $23.0 of our 4.60% Notes and $27.0 of our 5.00% Notes. The aggregate repurchase price was equal to the principal amount of the notes, less a discount received of $2.4 and accrued interest of $.7. In connection with these repurchases of debt, we incurred a gain on extinguishment of debt of $2.1 before tax in the fourth quarter of 2018 consisting of the $2.4 discount received for the repurchases, partially offset by $.3 for the write-off of debt issuance costs and discounts related to the initial issuance of the notes that were repurchased.
In July 2019, we repurchased $274.8 of our 4.60% Notes by way of a tender offer. The aggregate repurchase price was equal to the principal amount of $274.8 less a discount received of $.6, plus an early tender premium of $8.2 and accrued interest of $5.4. In December 2019, we prepaid the remaining principal amount of our 4.6% Notes. The prepayment price was equal to the remaining principal amount of $112.2, plus a make-whole premium of $1.4 and accrued interest of $1.7. In connection with these repurchases of debt, we incurred a loss on extinguishment of debt of $8.1 before tax in the third quarter and $1.5 before tax in the fourth quarter of 2019.
In September 2020, we repurchased $27.8 of our 6.95% Notes due March 15, 2043. The aggregate repurchase price was equal to the principal amount of the notes, plus a premium of $3.8 and accrued interest of $1.2. In connection with the repurchase, we incurred a loss on extinguishment of debt of $4.1 before tax in the third quarter of 2020 consisting of the $3.8 premium paid for the repurchases, and $.3 for the write-off of debt issuance costs and discounts related to the initial issuance of the notes that were repurchased.
At December 31, 2021 and 2020, the carrying values of our unsecured notes were comprised of the following:
20212020
Remaining PrincipalUnamortized DiscountsUnamortized Debt Issuance CostsTotalRemaining PrincipalUnamortized DiscountsUnamortized Debt Issuance CostsTotal
5.00% Notes, due March 2023
461.9 (.5)(.6)460.8 461.9 (1.0)(.8)460.1 
6.95% Notes, due March 2043
216.1 (1.7)(.5)213.9 216.1 (.5)(1.8)213.8 

The indentures governing our outstanding notes described above contain certain customary covenants, customary events of default, cross-default provisions and change in control provisions. In July and September 2019, bondholder consents for the 5% Notes and the 6.95% Notes, respectively, were obtained to amend the definition of "change of control" to permit the acquisition of Avon by Natura. No repayment of notes was triggered by the Transaction with Natura &Co.
At December 31, 2021 and 2020, we had recorded accrued interest on our unsecured notes of $14.7 and $15.2, respectively, which is classified within other accrued liabilities in our Consolidated Balance Sheets.
Senior Secured Notes
In August 2016, Avon International Operations, Inc. ("AIO"), a wholly-owned subsidiary of the Company, issued, in a private placement exempt from registration under the Securities Act of 1933, as amended, $500.0 in aggregate principal amount of 7.875% Senior Secured Notes, with a maturity date of August 15, 2022 (the "2016 Notes").
In July 2019, Avon International Capital, p.l.c. ("AIC"), a wholly-owned subsidiary of the Company, issued, in a private placement exempt from registration under the Securities Act of 1933, as amended, $400.0 in aggregate principal amount of 6.5% Senior Secured Notes, with a maturity date August 15, 2022 (the "2019 Notes").
In November 2020, in connection with the Natura & Co Promissory Note, we redeemed the outstanding principal amount of our 2016 Notes due August 15, 2022 and the outstanding principal amount of our 2019 Notes due August 15, 2022. With respect to the 2016 Notes, the aggregate redemption amount paid was equal to the outstanding principal amount of $500, plus a premium of $9.8 and accrued interest of $8.4. With respect to the 2019 Notes, the aggregate redemption amount paid was equal to the outstanding principal amount of $400, plus a premium of $7.9 and accrued interest of $5.6.
In connection with the redemption, we incurred a loss on extinguishment of debt of $25.6 before tax in the fourth quarter of 2020 consisting of the $17.7 premiums, and the write-off of $7.9 of debt issuance costs related to the initial issuances of the notes that were redeemed.
Certain hedging and cash management obligations of the Company and certain subsidiaries are secured by first priority security interests in substantially all of its assets, subject to certain exceptions.
At December 31, 2021 and 2020, the carrying values of our senior secured notes was nil.
Maturities of Long-Term Debt
Annual maturities of long-term debt, which includes our notes, loans from affiliates of Natura &Co and capital leases outstanding at December 31, 2021, are as follows:
202220232024202520262027 and BeyondTotal
Maturities$— $462.7 $.3 $.2 $.1 $952.4 $1,415.7 
Other Financing
Natura Revolving Credit Facility
In May 2020, the Company’s subsidiary, Avon Luxembourg entered into a Revolving Credit Facility Agreement with Natura &Co International S.à r.l., a subsidiary of Natura &Co Holding and an affiliate of the Company, in the initial amount of $100, increased to $250 in March 2021, which may be used for working capital and other general corporate purposes (the "Facility"). Borrowings under the Facility bear interest at a rate per annum of LIBOR plus a margin determined on an arm's length basis, and the Facility is to mature on May 31, 2022. On July 1, 2021, the Company sold Avon Luxembourg to a subsidiary of Natura &Co Holding and the Company no longer has access to this facility.
Related Party loans
In November 2020, AIO entered into a Promissory Note with a subsidiary of Natura &Co Holding S.A. and an affiliate of the Company in the amount of $960. The Promissory Note bears interest at a rate per annum of 3.13% and matures on November 2, 2022 (“the Natura &Co Loan”). On July 1, 2021, as part of the sale of Avon Luxembourg to a subsidiary of Natura &Co Holding the $960 loan was partially repaid with the proceeds from a loan maturing in 2028. As at December 31, 2021, $207 was outstanding under the Natura &Co Loan and $736 was outstanding under the loan maturing in 2028 which is between Avon Beauty Limited, and Natura &Co Luxembourg Holdings S.à r.l. ("Natura &Co Lux Loan").
In addition, loans from affiliates of Natura &Co Holding at December 31, 2021 of $164 includes a number of intercompany loans between Avon Luxembourg and Avon Products, Inc. affiliates that, following the sale of Avon Luxembourg to a subsidiary of Natura &Co Holding S.A. on July 1, 2021, were redesignated as loans from affiliates of Natura & Co Holding.
Other short-term financing
At December 31, 2021, we utilized approximately $33 of short-term financing from third-party banks across multiple markets bearing an average interest rate of per annum of 7.7%.
Revolving Credit Facility
In June 2015, AIO, a wholly-owned subsidiary of the Company, entered into a five-year $400.0 senior secured revolving credit facility (the "2015 facility").
In February 2019, AIC, a wholly-owned subsidiary of the Company, entered into a three-year €200.0 senior secured revolving credit facility (the "2019 facility"). The 2019 facility replaced the 2015 facility and the 2015 facility was terminated at such time.
In the first quarter of 2019, $2.0 was recorded for the write-off of unamortized issuance costs related to the 2015 revolving credit facility. In the first quarter of 2019, the Company capitalized $11.0 of issue costs relating to the new revolving credit facility; the cash outflow is presented in other financing activities within the Consolidated Statement of Cash Flows.
As of December 31, 2019, there were no amounts outstanding under the 2019 facility and on January 3, 2020, the facility was automatically cancelled upon change of control, and as a result $7.8 was of unamortized issuance costs were written off, see Note 21, Agreement and Plan of Mergers with Natura Cosméticos S.A., to the Consolidated Financial Statements included herein.
Letters of Credit
At December 31, 2021 and 2020, we also had letters of credit outstanding totaling $11.3 and $16.9, respectively. These balances primarily relate to a letter of credit issued to a lessor of certain equipment, a lease which was transferred to New Avon in connection with the separation of the Company's North America business, and letters of credit which guarantee various insurance activities.
Long-Term Credit Ratings
Our long-term credit ratings are: Moody’s ratings of Stable Outlook with Ba3 for corporate family debt; S&P ratings of Stable Outlook with BB- for corporate family debt and senior unsecured debt; and Fitch rating of Stable Outlook with BB for corporate family and unsecured debt.
Our credit ratings remain below investment grade which may impact our ability to access financing transactions on favorable terms.