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BORROWINGS AND LINES OF CREDIT | 3 Months Ended
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Mar. 31, 2020
Debt Disclosure [Abstract] |
BORROWINGS AND LINES OF CREDIT | BORROWINGS AND LINES OF CREDIT As of March 31, 2020, we had entered into, but not utilized, a $2.0 billion unsecured, unsubordinated commercial paper program. We plan to use our commercial paper borrowings for general corporate purposes, including the funding of working capital and potential acquisitions. On February 10, 2020, we entered into a revolving credit agreement with various banks permitting aggregate borrowings of up to $2.0 billion pursuant to an unsecured, unsubordinated revolving credit facility that matures on April 3, 2025 (the "revolving credit facility"). The revolving credit facility was not available to Carrier or its subsidiaries until after the Separation. The revolving credit facility will support our commercial paper program and support our cash requirements. A commitment fee of 0.125% is charged on the unused commitments. Borrowings under t he revolving credit facility are available in U.S. Dollars, Euros and Pounds Sterling and bear interest at a variable interest rate based on LIBOR plus a ratings-based margin, which was 125 basis points as of March 31, 2020. On February 10, 2020, we entered into a $1.75 billion term loan credit agreement that provides an unsecured, unsubordinated credit facility which expires on February 10, 2023 (the "term loan credit facility"). Borrowings under the term loan credit facility are subject to a variable interest rate based on LIBOR plus a ratings-based margin, which was 112.5 basis points as of March 31, 2020. On February 27, 2020, Carrier issued $9.25 billion of unsecured, unsubordinated long-term notes in six series with maturity dates ranging from 2023 through 2050. The notes were issued pursuant to an indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. The revolving credit agreement, term loan credit agreement and indenture contain affirmative and negative covenants customary to financings of this type, that among other things, limit Carrier and its subsidiaries' ability to incur additional liens, to make certain fundamental changes and to enter into sale and leaseback transactions. In addition, the revolving credit agreement and term loan credit agreement contain a financial covenant that requires us to not exceed a maximum consolidated total net leverage ratio that will be tested beginning with the fiscal quarter ending on September 30, 2020. On March 27, 2020, Carrier drew $1.75 billion on the term loan credit facility. The proceeds from the notes and the term loan credit facility were used to distribute $10.9 billion to UTC in connection with the Separation. Long-term debt, all of which was issued during the quarter ended March 31, 2020 except for Other long-term debt, consisted of the following:
(dollars in millions) |  |  |  |  |  |  |
Debt Description | Interest Rate |  | Due Date | March 31, 2020 |  | December 31, 2019 |
3-Year Term Loan Credit Facility | 2.195 | % | 1 | February 10, 2023 | $ | 1,750 |  | 2 | $ | — |  |
3-Year Fixed Rate Notes | 1.923 | % |  | February 15, 2023 | 500 |  | 2 | — |  |
5-Year Fixed Rate Notes | 2.242 | % |  | February 15, 2025 | 2,000 |  | 2 | — |  |
7-Year Fixed Rate Notes | 2.493 | % |  | February 15, 2027 | 1,250 |  | 2 | — |  |
10-Year Fixed Rate Notes | 2.722 | % |  | February 15, 2030 | 2,000 |  | 2 | — |  |
20-Year Fixed Rate Notes | 3.377 | % |  | April 05, 2040 | 1,500 |  | 2 | — |  |
30-Year Fixed Rate Notes | 3.577 | % |  | April 05, 2050 | 2,000 |  | 2 | — |  |
Other (including project financing obligations and finance leases) |  |  |  | 326 |  |  | 319 |  |
Total principal long-term debt |  |  |  |  | 11,326 |  |  |  | 319 |  |
Other (discounts and debt issuance costs) |  |  |  |  | (79) |  | 2 | — |  |
Total debt |  |  |  |  | 11,247 |  |  |  | 319 |  |
Less: current portion of long-term debt |  |  |  | 218 |  |  | 237 |  |
Long-term debt, net of current portion |  |  |  | $ | 11,029 |  |  |  | $ | 82 |  |
1 The interest rate on the term loan is variable based on six month LIBOR of 1.07% plus 112.5 basis points. 2 The net proceeds of the financing arrangements were used to distribute cash to UTC. We issued $40 million and $52 million of debt during the quarters ended March 31, 2020 and 2019, respectively, relating to project financing arrangements. Long-term debt repayments during the quarters ended March 31, 2020 and 2019 were $34 million and $1 million, respectively. Scheduled maturities of long-term debt, excluding amortization of discount, are as follows:
(dollars in millions) |  |  |
2020 |  | $ | 218 |  |
2021 |  | $ | 70 |  |
2022 |  | $ | 28 |  |
2023 |  | $ | 2,260 |  |
2024 |  | $ | — |  |
Thereafter |  | $ | 8,750 |  |
The average maturity of our long-term debt at March 31, 2020 is approximate ly 11 years and the average interest rate on our total borrowings for the quarter ended March 31, 2020 is approximately 2.7%. Interest expense associated with long-term debt for the quarter ended March 31, 2020 was $31 million. Included in interest expense on the accompanying Unaudited Condensed Combined Statement of Operations is accrued interest of $25 million, debt issuance costs of $5 million and amortization of debt issuance costs of $0.7 million.

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- 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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