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Debt and Credit Facilities
 12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Debt and credit facilities DEBT AND CREDIT FACILITIES
The following table summarizes the carrying amount of our borrowings under various financing arrangements:
(in millions)December 31,
Type of BorrowingIssue DateDue DateInterest Rate20202019
Senior UnsecuredNovember 2014February 20202.35%$— $500 
Senior UnsecuredSeptember 2015September 20202.55%— 1,999 
Senior UnsecuredMarch 2011April 20214.50%1,000 998 
Senior UnsecuredSeptember 2020September 2021
3-month LIBOR + 0.15%
499 — 
Senior UnsecuredDecember 2011December 20214.40%1,249 1,248 
Senior UnsecuredSeptember 2016March 20221.95%499 499 
Senior UnsecuredSeptember 2015September 20223.25%998 998 
Senior UnsecuredSeptember 2016September 20232.50%748 747 
Senior UnsecuredSeptember 2020September 2023
3-month LIBOR + 0.52%
498 — 
Senior UnsecuredSeptember 2020September 20230.75%1,992 — 
Term LoanOctober 2020October 2023variable998 — 
Senior UnsecuredMarch 2014April 20243.70%1,746 1,745 
Senior UnsecuredNovember 2014February 20253.50%1,746 1,746 
Senior UnsecuredSeptember 2015March 20263.65%2,737 2,734 
Senior UnsecuredSeptember 2016March 20272.95%1,246 1,245 
Senior UnsecuredSeptember 2020October 20271.20%745 — 
Senior UnsecuredSeptember 2020October 20301.65%992 — 
Senior UnsecuredSeptember 2015September 20354.60%991 991 
Senior UnsecuredSeptember 2016September 20364.00%741 741 
Senior UnsecuredSeptember 2020October 20402.60%986 — 
Senior UnsecuredDecember 2011December 20415.65%996 995 
Senior UnsecuredMarch 2014April 20444.80%1,735 1,734 
Senior UnsecuredNovember 2014February 20454.50%1,732 1,731 
Senior UnsecuredSeptember 2015March 20464.75%2,219 2,217 
Senior UnsecuredSeptember 2016March 20474.15%1,726 1,725 
Senior UnsecuredSeptember 2020October 20502.80%1,476 — 
Total senior unsecured notes and term loan facility30,295 24,593 
Liability related to future royalties1,107 — 
Total debt, net31,402 24,593 
Less: current portion of long-term debt and other obligations, net
2,757 2,499 
Total long-term debt, net$28,645 $22,094 
Senior Unsecured Notes
In September 2020, we issued senior unsecured notes consisting of (i) $500 million principal amount of floating rate notes due September 2021 and $500 million principal amount of floating rate notes due September 2023 (together, the “Floating Rate Notes”); and (ii) $2.0 billion principal amount of 0.75% senior notes due September 2023, $750 million principal amount of 1.20% senior notes due October 2027, $1.0 billion principal amount of 1.65% senior notes due October 2030, $1.0 billion principal amount of 2.60% senior notes due October 2040 and $1.5 billion principal amount of 2.80% senior notes due October 2050, the terms of which are summarized in the table above.
In February 2020, we repaid at maturity $500 million of principal balance related to our 2014 senior unsecured notes. In September 2020, we repaid at maturity $2.0 billion principal balance related to our 2015 senior unsecured notes. In 2019, we repaid $2.75 billion of our senior unsecured notes upon maturity. In January 2021, we repaid $1.0 billion of senior unsecured notes prior to the April 2021 maturity.
Our senior unsecured fixed rate notes may be redeemed at our option at a redemption price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed and (ii) the sum, as determined by an independent investment banker, of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed (exclusive of interest accrued to the date of redemption) discounted to the redemption date on a semiannual basis at the Treasury Rate, plus a make-whole premium as defined in the indenture. The senior unsecured fixed rate notes also have a call feature, exercisable at our option, to redeem the notes at par in whole, or in part, on dates ranging from one month to two years prior to maturity. In each case, accrued and unpaid interest is also required to be redeemed to the date of redemption. The September 2023 floating rate notes also have a call feature, exercisable at our option, to redeem the notes at par, in whole, or in part, approximately two years prior to maturity.
In the event of the occurrence of a change in control and a downgrade in the rating of our senior unsecured notes below investment grade by Moody’s Investors Service, Inc. and S&P Global Ratings, the holders may require us to purchase all or a portion of their notes at a price equal to 101% of the aggregate principal amount of the notes repurchased, plus accrued and unpaid interest to the date of repurchase. We are required to comply with certain covenants under our senior unsecured notes and as of December 31, 2020 and 2019, we were not in violation of any covenants.
Term Loan Facility
In September 2020, we entered into a commitment letter with a group of institutional lenders to provide for a three-year senior unsecured term loan facility in an aggregate principal amount of $1.0 billion. Pursuant to the commitment letter, in October 2020, in connection with our acquisition of Immunomedics, we entered into a term loan credit agreement (the “Term Loan Facility”) and borrowed an aggregate principal amount of $1.0 billion.
The Term Loan Facility contains customary representations, warranties, affirmative and negative covenants and events of default. The Term Loan Facility bears interest at the Eurodollar Rate plus the Applicable Percentage as defined in the Term Loan Facility. We may terminate or reduce the amount borrowed under the Term Loan Facility in whole or in part at any time without premium or penalty.
Liability Related to Future Royalties
In connection with our acquisition of Immunomedics, we assumed a liability related to a funding arrangement, which was originally entered into by Immunomedics and RPI, prior to the completion of our acquisition of Immunomedics. The liability related to future royalties was primarily included in Long-term debt, net on our Consolidated Balance Sheets. See Note 6. Acquisitions for additional information.
Revolving Credit Facilities
In May 2016, we entered into a $2.5 billion five-year revolving credit facility agreement maturing in May 2021 (the “2016 Revolving Credit Facility”). In June 2020, we terminated the 2016 Revolving Credit Facility. As of December 31, 2019, there were no amounts outstanding under the 2016 Revolving Credit Facility.
In June 2020, we entered into a new $2.5 billion five-year revolving credit facility maturing in June 2025 (the “2020 Revolving Credit Facility”), which has terms substantially similar to the 2016 Revolving Credit Facility. The 2020 Revolving Credit Facility can be used for working capital requirements and for general corporate purposes, including, without limitation, acquisitions. As of December 31, 2020, there were no amounts outstanding under the 2020 Revolving Credit Facility.
The 2020 Revolving Credit Facility contains customary representations, warranties, affirmative and negative covenants and events of default. At December 31, 2020, we were in compliance with all covenants. Loans under the 2020 Revolving Credit Facility bear interest at either (i) the Eurodollar Rate plus the Applicable Percentage, or (ii) the Base Rate plus the Applicable Percentage, each as defined in the 2020 Revolving Credit Facility agreement. We may terminate or reduce the commitments, and may prepay any loans under the new credit facility in whole or in part at any time without premium or penalty.
Contractual Maturities of Financing Obligations
The following table summarizes the aggregate future principal maturities of our senior unsecured notes and Term Loan Facility as of December 31, 2020:
(in millions)Amount
2021$2,750 
20221,500 
20234,250 
20241,750 
20251,750 
Thereafter18,500 
Total$30,500 
Interest Expense
Interest expense on our debt and credit facilities related to the contractual coupon rates and amortization of the debt discount and issuance costs was $994 million, $1.0 billion and $1.1 billion in 2020, 2019 and 2018, respectively.