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LONG-TERM DEBT | 12 Months Ended
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May 26, 2019
Debt Disclosure [Abstract] |
LONG-TERM DEBT | LONG-TERM DEBT
| May 26, 2019 |  | May 27, 2018
5.4% senior debt due November 2048 | $ | 1,000.0 |  |  | $ | — |
4.65% senior debt due January 2043 | 176.7 |  |  | 176.7 |
6.625% senior debt due August 2039 | 91.4 |  |  | 91.4 |
5.3% senior debt due November 2038 | 1,000.0 |  |  | — |
8.25% senior debt due September 2030 | 300.0 |  |  | 300.0 |
4.85% senior debt due November 2028 | 1,300.0 |  |  | — |
7.0% senior debt due October 2028 | 382.2 |  |  | 382.2 |
6.7% senior debt due August 2027 | 9.2 |  |  | 9.2 |
7.125% senior debt due October 2026 | 262.5 |  |  | 262.5 |
4.6% senior debt due November 2025 | 1,000.0 |  |  | — |
4.3% senior debt due May 2024 | 1,000.0 |  |  | — |
LIBOR plus 1.50% term loan due October 2023 | 200.0 |  |  | — |
3.2% senior debt due January 2023 | 837.0 |  |  | 837.0 |
3.25% senior debt due September 2022 | 250.0 |  |  | 250.0 |
LIBOR plus 1.375% term loan due October 2021 | 200.0 |  |  | — |
3.8% senior debt due October 2021 | 1,200.0 |  |  | — |
9.75% subordinated debt due March 2021 | 195.9 |  |  | 195.9 |
LIBOR plus 0.75% senior debt due October 2020 | 525.0 |  |  | — |
LIBOR plus 0.50% senior debt due October 2020 | 500.0 |  |  | 500.0 |
4.95% senior debt due August 2020 | 126.6 |  |  | 126.6 |
LIBOR plus 0.75% term loan due February 2019 | — |  |  | 300.0 |
2.00% to 9.59% lease financing obligations due on various dates through 2033 | 165.4 |  |  | 94.7 |
Other indebtedness | 0.1 |  |  | 0.2 |
Total face value of debt | 10,722.0 |  |  | 3,526.4 |
Unamortized fair value adjustment | 24.5 |  |  | 27.6 |
Unamortized discounts | (19.0 | ) |  | (5.8 | )
Unamortized debt issuance costs | (52.1 | ) |  | (11.3 | )
Adjustment due to hedging activity | 0.9 |  |  | 1.6 |
Less current installments | (20.6 | ) |  | (307.0 | )
Total long-term debt | $ | 10,655.7 |  |  | $ | 3,231.5 |
The aggregate minimum principal maturities of the long-term debt for each of the five fiscal years following May 26, 2019, are as follows:
2020 | $ | 20.6 |
2021 | 1,368.2 |
2022 | 1,420.4 |
2023 | 1,103.4 |
2024 | 1,213.0 |
Pinnacle Acquisition Financing In the first quarter of fiscal 2019, in connection with the announcement of the Pinnacle acquisition, we secured $9.0 billion in fully committed bridge financing. Prior to the acquisition, we capitalized financing costs related to the bridge financing of $45.7 million to be amortized over the commitment period. Our net interest expense included $11.9 million for fiscal 2019 as a result of this amortization. The bridge facility was terminated in connection with the acquisition, and we recognized $33.8 million of expense within SG&A expenses for the remaining unamortized financing costs. Also in the first quarter of fiscal 2019, we entered into a term loan agreement (the “Term Loan Agreement”) with a syndicate of financial institutions providing for term loans to the Company in an aggregate principal amount of up to $1.30 billion, as well as deal-contingent forward starting interest rate swap contracts (see Note 18) to hedge a portion of the interest rate risk related to our anticipated issuance of long-term debt to help finance the acquisition of Pinnacle. During the second quarter of fiscal 2019, to finance a portion of our acquisition of Pinnacle, we (i) issued new senior unsecured notes in an aggregate principal amount of $7.025 billion and (ii) borrowed $1.30 billion under the Term Loan Agreement. We issued the new senior unsecured notes in seven tranches: floating rate senior notes due October 22, 2020 in an aggregate principal amount of $525.0 million with interest equal to three-month LIBOR plus 0.75%, 3.8% senior notes due October 22, 2021 in an aggregate principal amount of $1.20 billion; 4.3% senior notes due May 1, 2024 in an aggregate principal amount of $1.0 billion; 4.6% senior notes due November 1, 2025 in an aggregate principal amount of $1.0 billion; 4.85% senior notes due November 1, 2028 in an aggregate principal amount of $1.30 billion; 5.3% senior notes due November 1, 2038 in an aggregate principal amount of $1.0 billion; and 5.4% senior notes due November 1, 2048 in an aggregate principal amount of $1.0 billion. Our $1.30 billion of borrowings under the Term Loan Agreement consisted of a $650.0 million tranche of three-year term loans and a $650.0 million tranche of five-year term loans. The three-year tranche loans mature on October 26, 2021, and the five-year tranche loans mature on October 26, 2023. These term loans bear interest at, at the Company's election, either (a) LIBOR plus a percentage spread (ranging from 1% to 1.625% for three-year tranche loans and 1.125% to 1.75% for five-year tranche loans) based on the Company's senior unsecured long-term indebtedness ratings or (b) the alternate base rate, described in the Term Loan Agreement as the greatest of (i) Bank of America's prime rate, (ii) the federal funds rate plus 0.50%, and (iii) one-month LIBOR plus 1.00%, plus a percentage spread (ranging from 0% to 0.625% for three-year tranche loans and 0.125% to 0.75% for five-year tranche loans) based on the Company's senior unsecured long-term indebtedness ratings. The Company may voluntarily prepay term loans under the Term Loan Agreement, in whole or in part, without penalty, subject to certain conditions. During fiscal 2019, we repaid $900.0 million of our borrowings under the Term Loan Agreement, which repayment consisted of $450.0 million of the three-year tranche loans and $450.0 million of the five-year tranche loans. Subsequent to fiscal 2019, we repaid an additional $100.0 million of the three-year tranche loans and $100.0 million of the five-year tranche loans. In the second quarter of fiscal 2019, in connection with the Pinnacle acquisition, we prepaid in full $2.40 billion of obligations and liabilities of Pinnacle under or in respect of Pinnacle's credit agreement and other debt agreements. We also redeemed $350.0 million in aggregate principal amount of Pinnacle's outstanding 5.875% senior notes due January 15, 2024 and recognized a charge of $3.9 million as a cost of early retirement of debt. Also, in connection with the financing for the Pinnacle acquisition, we capitalized $49.6 million of debt issuance costs. Our net interest expense in fiscal 2019 was reduced by $2.0 million due to the impact of the interest rate swap contracts entered into in the first quarter of fiscal 2019. During the second quarter of fiscal 2019, we terminated the interest rate swap contacts and received proceeds of $47.5 million. This gain was deferred in accumulated other comprehensive income and is being amortized as a reduction of interest expense over the lives of the related debt instruments. Other Long-Term Debt During the third quarter of fiscal 2018, we entered into a term loan agreement (the "Prior Term Loan Agreement") with a financial institution. The Prior Term Loan Agreement provided for term loans to the Company in an aggregate principal amount not to exceed $300.0 million, maturing on February 26, 2019. During the fourth quarter of fiscal 2018, we borrowed the full amount of the $300.0 million provided for under the Prior Term Loan Agreement. During the second quarter of fiscal 2019, we repaid in full the principal balance of all term loans outstanding under the Prior Term Loan Agreement. This did not result in a significant gain or loss. During the fourth quarter of fiscal 2018, we repaid the remaining principal balance of $70.0 million of our 2.1% senior notes on the maturity date of March 15, 2018. During the third quarter of fiscal 2018, we repaid the remaining principal balance of $119.6 million of our 1.9% senior notes on the maturity date of January 25, 2018. During the third quarter of fiscal 2018, we repaid the remaining capital lease liability balance of $28.5 million in connection with the early exit of an unfavorable lease contract. During the second quarter of fiscal 2018, we issued $500.0 million aggregate principal amount of floating rate notes due October 9, 2020. The notes bear interest at a rate equal to three-month LIBOR plus 0.50% per annum. During the third quarter of fiscal 2017, we repaid the remaining principal balance of $224.8 million of our 5.819% senior notes due 2017 and $248.2 million principal amount of our 7.0% senior notes due 2019, in each case prior to maturity, resulting in a net loss on early retirement of debt of $32.7 million. In connection with the Spinoff of Lamb Weston (see Note 6), Lamb Weston issued to us $1.54 billion aggregate principal amount of senior notes (the "Lamb Weston notes"). On November 9, 2016, we exchanged the Lamb Weston notes for $250.2 million aggregate principal amount of our 5.819% senior notes due 2017, $880.4 million aggregate principal amount of our 1.9% senior notes due 2018, $154.9 million aggregate principal amount of our 2.1% senior notes due 2018, $86.9 million aggregate principal amount of our 7.0% senior notes due 2019, and $71.1 million aggregate principal amount of our 4.95% senior notes due 2020 (collectively, the "Conagra notes"), which had been purchased in the open market by certain investment banks prior to the Spinoff. Following the exchange, we cancelled the Conagra notes. These actions resulted in a net loss of $60.6 million as a cost of early retirement of debt. During the first quarter of fiscal 2017, we repaid the entire principal balance of $550.0 million of our floating rate notes on the maturity date of July 21, 2016. General The Revolving Credit Facility (as defined in Note 5) and the Term Loan Agreement generally require our ratio of earnings before interest, taxes, depreciation and amortization ("EBITDA") to interest expense not to be less than 3.0 to 1.0 and our ratio of funded debt to EBITDA not to exceed certain decreasing specified levels, ranging from 5.875 through the first quarter of fiscal 2020 to 3.75 from the second quarter of fiscal 2023 and thereafter, with each ratio to be calculated on a rolling four-quarter basis. As of May 26, 2019, we were in compliance with all financial covenants under the Revolving Credit Facility and the Term Loan Agreement. Net interest expense consists of:
| 2019 |  | 2018 |  | 2017
Long-term debt | $ | 385.9 |  |  | $ | 161.2 |  |  | $ | 203.6 |
Short-term debt | 15.0 |  |  | 4.8 |  |  | 0.6 |
Interest income | (6.8 | ) |  | (3.8 | ) |  | (3.7 | )
Interest capitalized | (2.7 | ) |  | (3.5 | ) |  | (5.0 | )
| $ | 391.4 |  |  | $ | 158.7 |  |  | $ | 195.5 |
Interest paid from continuing operations was $375.6 million, $164.5 million, and $223.7 million in fiscal 2019, 2018, and 2017, respectively.

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