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Debt
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Debt Debt
As of June 30, 2023As of December 31, 2022
Maturity DateInterest RateAmountInterest RateAmount
Credit Facility
Senior unsecured revolving loan facilityDecember 2026Variable$— Variable$72.5 
Term Loan
Senior unsecured term loan facilityDecember 2026Variable734.5 Variable784.5 
Unsecured Senior Notes
Senior notes due 2024December 20245.500 %575.0 5.500 %575.0 
Senior notes due 2025May 20254.125 %600.0 4.125 %600.0 
Senior notes due 2026December 20262.670 %1,000.0 2.670 %1,000.0 
Senior notes due 2028April 20284.250 %600.0 4.250 %600.0 
Senior notes due 2028December 20283.276 %500.0 3.276 %500.0 
Senior notes due 2029February 20293.250 %700.0 3.250 %700.0 
Senior notes due 2031December 20313.569 %1,000.0 3.569 %1,000.0 
Total unsecured senior notes4,975.0 4,975.0 
Receivable financing liability76.4 115.4 
Other long-term obligations9.6 11.6 
Unamortized deferred financing fees(32.3)(36.3)
Current maturities of long-term debt(42.2)(56.3)
Total long-term debt$5,721.0 $5,866.4 
As of June 30, 2023, the Company is in compliance with the covenants under its credit agreements and indentures.
Credit Facility
The Company has a variable rate senior unsecured revolving loan facility (the “Revolving Loan Facility”) from which it may draw tranches denominated in US dollars, British pounds or Euros. During the six months ended June 30, 2023, the interest rate was based on London Interbank Offer Rate (“LIBOR”) plus a margin or an alternate base rate plus a margin, where the margin is based on the Company’s senior unsecured rating. The Revolving Loan Facility is used by the Company for borrowings, issuances of letters of credit and floorplan financing. As of June 30, 2023, the Company could have borrowed up to an additional $1.0 billion under the Revolving Loan Facility. As of June 30, 2023, the Revolving Loan Facility had less than $1 million of undrawn letters of credit and $616 million reserved for the floorplan sub-facility.
On June 7, 2023, the Revolving Loan Facility was amended to replace LIBOR with the Secured Overnight Financing Rate (“SOFR”) as the interest rate benchmark, which will take into effect for the first interest rate period beginning after July 1, 2023.
Term Loan
The senior unsecured term loan facility (the “Term Loan Facility”) has a variable interest rate. The interest rate is based on LIBOR plus a margin, where the margin is determined by the Company’s senior unsecured credit rating. During the six months ended June 30, 2023, the Company prepaid $50 million on the Term Loan Facility without penalty. As a result of the prepayments made to date, no additional mandatory payments are required on the remaining principal amount until its maturity date on December 1, 2026.
On June 7, 2023, the Term Loan Facility was amended to replace LIBOR with SOFR as the interest rate benchmark, which will take into effect for the first interest rate period beginning after July 1, 2023.
Unsecured Senior Notes
The unsecured senior notes have a fixed interest rate, which is paid semi-annually.
Receivable Financing
The receivable financing liability relates to certain accounts receivable transferred to third-party financial institutions that did not qualify as a sale under the terms of the agreements. While the terms of such agreements are on a nonrecourse basis, the transfers of accounts receivable could not achieve certain criteria that would allow derecognition of the accounts receivable. The proceeds from these arrangements are recognized as a liability and the associated accounts receivable remains on the Consolidated Balance Sheet until the liability is settled. The Company did not execute any transfers under these agreements during the six months ended June 30, 2023.
Fair Value
The fair values of the unsecured senior notes were estimated using quoted market prices for identical liabilities that are traded in over-the-counter secondary markets. The fair value of the Term Loan Facility was estimated using dealer quotes for identical liabilities in markets that are not considered active. The unsecured senior notes and Term Loan Facility were classified as Level 2 within the fair value hierarchy. The carrying value of the Revolving Loan Facility approximates fair value.
The approximate fair values and related carrying values of the Company’s long-term debt, including current maturities and excluding unamortized discount and unamortized deferred financing costs, were as follows:
June 30, 2023December 31, 2022
Fair value$5,300.5 $5,412.6 
Carrying value5,795.5 5,959.0