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ABL CREDIT FACILITY
 12 Months Ended
Oct. 30, 2021
Line of Credit Facility [Abstract]  
ABL CREDIT FACILITY SHORT-TERM AND LONG-TERM DEBT
2025 Term Loan

On January 23, 2020, Ciena entered into a Refinancing Amendment to Credit Agreement pursuant to which Ciena refinanced the entire outstanding amount of its then existing senior secured term loan and incurred a new senior secured term loan in an aggregate principal amount of $693.0 million and maturing on September 28, 2025 (the “2025 Term Loan”).
The net carrying value of Ciena’s term loan was comprised of the following for the fiscal periods indicated (in thousands):
October 30, 2021October 31, 2020
Principal BalanceUnamortized DiscountDeferred Debt Issuance CostsNet Carrying ValueNet Carrying Value
2025 Term Loan$680,873 $(1,250)$(2,338)$677,285 $683,286 

Deferred debt issuance costs deducted from the carrying amount of the term loan totaled $2.3 million at October 30, 2021 and $2.9 million at October 31, 2020. Deferred debt issuance costs are amortized using the straight-line method, which approximates the effect of the effective interest rate method, through the maturity of the term loan. The amortization of deferred debt issuance costs for this term loan is included in interest expense, and was $0.6 million during each of fiscal 2021 and fiscal 2020.

As of October 30, 2021, the estimated fair value of the term loan was $680.0 million. Ciena’s term loan is categorized as Level 2 in the fair value hierarchy. Ciena estimated the fair value of its term loan using a market approach based on observable inputs, such as current market transactions involving comparable securities.
ABL CREDIT FACILITY
Ciena Corporation and certain of its subsidiaries are parties to the ABL Credit Facility, which provides for a total commitment of $300 million with a maturity date of October 28, 2024. The ABL Credit Facility was entered into on October 28, 2019 and replaced a predecessor senior secured asset-based revolving credit facility. Ciena principally uses the ABL Credit Facility to support the issuance of letters of credit that arise in the ordinary course of its business and thereby to reduce its use of cash required to collateralize these instruments.
As of October 30, 2021, letters of credit totaling $87.4 million were outstanding under the ABL Credit Facility. There were no borrowings outstanding under the ABL Credit Facility as of October 30, 2021.