Borrowings and Capital Leases



(In millions)	March 31, 2017		December 31, 2016
Short term borrowings:
Borrowings under the Revolving Credit Facilities Agreement	$	1,030.0	$	450.0
Borrowings under the November 2015 Facilities Agreement	1,995.1		2,594.8
Other borrowings and capital leases (short term portion)	24.4		23.2
	$	3,049.5	$	3,068.0

Long term borrowings:
Senior notes	$	12,042.1	$	12,039.2
Baxalta notes	5,061.4		5,063.6
Borrowings under the November 2015 Facilities Agreement	1,994.1		2,391.8
Capital leases (long term portion)	345.3		347.2
Other borrowings	53.0		58.0
	$	19,495.9	$	19,899.8

Total borrowings and capital leases	$	22,545.4	$	22,967.8

For a more detailed description of the Company's financing agreements, refer below and to Note 17, Borrowings and Capital Lease Obligations, of Shire's 2016 Form 10-K.

Senior Notes

On September 23, 2016, Shire Acquisitions Investments Ireland Designated Activity Company ("SAIIDAC"), a wholly owned subsidiary of Shire plc, issued unsecured senior notes with a total aggregate principal value of $12.1 billion (“SAIIDAC Notes”), guaranteed by Shire plc and, as of December 1, 2016, by Baxalta. Below is a summary of the SAIIDAC Notes as of March 31, 2017:



(In millions, except %)	Aggregate amount		Coupon rate		Effective interest rate in 2017		Carrying amount as of March 31, 2017
Fixed-rate notes due 2019	$	3,300.0	1.900	%	2.05	%	3,288.6
Fixed-rate notes due 2021	3,300.0		2.400	%	2.53	%	3,283.8
Fixed-rate notes due 2023	2,500.0		2.875	%	2.97	%	2,488.4
Fixed-rate notes due 2026	3,000.0		3.200	%	3.30	%	2,981.3
	$	12,100.0					$	12,042.1

As of March 31, 2017, there was $57.9 million of debt issuance costs and discount recorded as a reduction of the carrying amount of debt. These costs will be amortized as additional interest expense using the effective interest rate method over the period from issuance through maturity. For further details on the SAIIDAC Notes, refer to Note 17, Borrowings and Capital Lease Obligations, of Shire's 2016 Form 10-K.

Baxalta Notes

Shire plc guaranteed senior notes issued by Baxalta with a total aggregate principal amount of $5.0 billion in connection with the acquisition of Baxalta (“Baxalta Notes”). Below is a summary of the Baxalta Notes as of March 31, 2017:



(In millions, except %)	Aggregate principal		Coupon rate		Effective interest rate in 2017		Carrying amount as of March 31, 2017
Variable-rate notes due 2018	$	375.0	LIBOR plus 0.78%		2.40	%	$	372.2
Fixed-rate notes due 2018	375.0		2.000	%	2.10	%	374.8
Fixed-rate notes due 2020	1,000.0		2.875	%	2.90	%	1,003.5
Fixed-rate notes due 2022	500.0		3.600	%	3.30	%	508.0
Fixed-rate notes due 2025	1,750.0		4.000	%	4.10	%	1,771.4
Fixed-rate notes due 2045	1,000.0		5.250	%	5.20	%	1,031.5
Total assumed Senior Notes	$	5,000.0					$	5,061.4

The effective interest rates above exclude the effect of any related interest rate swaps. The book values above include any premiums and adjustments related to hedging instruments. For further details related to the interest rate derivative contracts, please see Note 11, Financial Instruments, to these Unaudited Consolidated Financial Statements.

Revolving Credit Facilities Agreement

On December 12, 2014, Shire entered into a $2.1 billion revolving credit facilities agreement (the “RCF”) with a number of financial institutions. As of March 31, 2017, the Company utilized $1,030.0 million of the RCF. The RCF, which terminates on December 12, 2021, may be used for financing the general corporate purposes of Shire. The RCF incorporates a $250.0 million U.S. dollar and Euro swingline facility operating as a sub-limit thereof.

Term Loan Facilities Agreements

November 2015 Facilities Agreement

On November 2, 2015, Shire entered into a $5.6 billion facilities agreement (the “November 2015 Facilities Agreement”), which is comprised of three amortizing credit facilities with the following amounts outstanding as of March 31, 2017, and their respective maturity dates:



(In millions)	Amount outstanding		Maturity
November 2015 Facility A	$	400.0	November 2, 2017
November 2015 Facility B	1,200.0		November 2, 2017
November 2015 Facility C	2,400.0		November 2, 2018
Total November 2015 Facilities	$	4,000.0

During the first quarter of 2017, the Company made $1.0 billion of scheduled and advance repayments under the November 2015 Facility B; consequently, $4.0 billion is outstanding as of March 31, 2017.

Short-term uncommitted lines of credit (“Credit lines”)

Shire has access to various Credit lines from a number of banks which are available to be utilized from time to time to provide short-term cash management flexibility. These Credit lines can be withdrawn by the banks at any time. The Credit lines are not relied upon for core liquidity. As of March 31, 2017, these Credit lines were not utilized.

Capital Lease Obligations

The capital leases are primarily related to office and manufacturing facilities. As of March 31, 2017, the total capital lease obligations, including current portions, were $351.9 million.