Long-Term Debt

6 Months Ended

Jul. 03, 2020

Note 7: Long-Term Debt

The Company's long-term debt consists of the following (annualized interest rates, in millions):


	As of
	July 3, 2020		December 31, 2019
Amended Credit Agreement:
Revolving Credit Facility due 2024, interest payable monthly at 1.68% and 3.30%, respectively	$	1,965.0	$	800.0
Term Loan “B” Facility due 2026, interest payable monthly at 2.18% and 3.80%, respectively	1,622.7		1,630.9
1.00% Notes due 2020 (1)	690.0		690.0
1.625% Notes due 2023 (2)	575.0		575.0
Other long-term debt (3)	0.5		53.3
Gross long-term debt, including current portion	$	4,853.2	$	3,749.2
Less: Debt discount (4)	(82.7)		(102.7)
Less: Debt issuance costs (5)	(30.1)		(34.0)
Net long-term debt, including current portion	$	4,740.4	$	3,612.5
Less: Current portion of long-term debt	(695.6)		(736.0)
Net long-term debt	$	4,044.8	$	2,876.5

(1) Interest is payable on June 1 and December 1 of each year at 1.00% annually.

(2) Interest is payable on April 15 and October 15 of each year at 1.625% annually.

(3) Consists of a term loan, finance lease and other facility at certain international locations where interest is payable monthly or quarterly, with interest rates ranging between 1.00% and 1.48% and maturity dates in 2020.

(4) Debt discount of $9.6 million and $20.4 million for the 1.00% Notes, $63.3 million and $71.8 million for the 1.625% Notes and $9.8 million and $10.5 million for the Term Loan "B" Facility, in each case as of July 3, 2020 and December 31, 2019, respectively.

(5) Debt issuance costs of $1.3 million and $2.8 million for the 1.00% Notes, $6.1 million and $6.9 million for the 1.625% Notes and $22.7 million and $24.3 million for the Term Loan "B" Facility, in each case as of July 3, 2020 and December 31, 2019, respectively.

Expected maturities of gross long-term debt (including current portion) as of July 3, 2020 are as follows (in millions):


Period	Expected Maturities
Remainder of 2020	$	698.7
2021	16.3
2022	16.3
2023	591.4
2024	1,981.4
Thereafter	1,549.1
Total	$	4,853.2

The Company was in compliance with its covenants under all debt agreements as of July 3, 2020.

Eighth Amendment to the Amended Credit Agreement

On June 23, 2020, the Company entered into the Eighth Amendment ("Eighth Amendment") to the Amended Credit Agreement with the subsidiary guarantors party thereto, Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and certain Lenders party thereto constituting the Required Lenders (as defined in the Amended Credit Agreement). The Eighth Amendment provided for, among other things, (i) replace the defined term “Capital Lease Obligations” with a new defined term “Finance Lease Obligations” providing that such obligations only include property classified as finance leases under U.S. GAAP and (ii) make certain amendments in connection with the proposed domestication of ON Management Ltd. and Quantenna Ltd., each of which is a subsidiary of the Company that is not a Loan Party (as defined in the Amended Credit Agreement) and both of which hold economic rights in certain intellectual property, from Bermuda entities to Delaware entities, including, among other things, (a) to permit Investments (as defined in the Amended Credit Agreement) by any Loan Party in any Foreign Subsidiary (as defined in the Amended Credit Agreement) if the proceeds of such Investments are used for Capital Expenditures (as defined in the Amended Credit Agreement) (“Capital Expenditure Investments”) and (b) to increase the amount of certain permitted intercompany Investments by any Loan Party in any subsidiary that is not a Loan Party by an amount (which shall not be less than zero) equal to (A) Net Royalties (as defined in the Amended Credit Agreement) minus (B) the aggregate amount of Capital Expenditure Investments. See Note 15: ''Subsequent Event'' for more information on the domestication of certain foreign subsidiaries, which was completed on July 6, 2020.

Credit Facility Draw

On March 24, 2020, the Company borrowed $1,165.0 million under the Revolving Credit Facility as a precautionary measure in order to increase the Company’s cash position and provide financial flexibility in light of the uncertainty resulting from the impact of the COVID-19 pandemic (the “Credit Facility Draw”). As a result of the Credit Facility Draw, as of July 3, 2020, the Company had borrowed substantially all amounts available under the Revolving Credit Facility and has $4.0 million available for draw under the Revolving Credit Facility, subject to certain conditions. The proceeds from the Credit Facility Draw could be used to repay a portion of debt maturing in 2020, and for working capital, general corporate or other purposes.