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BORROWINGS
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
BORROWINGS BORROWINGS
 March 31,December 31,
(Dollars in millions)20232022
Borrowings consisted of:
1.50% notes due May 2023 (1)
$816 $800 
7.25% debentures due January 2024
198 198 
7.625% debentures due June 2024
43 43 
3.80% notes due March 2025
694 693 
1.875% notes due November 2026 (1)
542 530 
7.60% debentures due February 2027
196 196 
4.5% notes due December 2028
495 495 
5.75% notes due March 2033 (2)
496 — 
4.8% notes due September 2042
494 494 
4.65% notes due October 2044
877 877 
2024 Term Loan300 — 
2027 Term Loan499 499 
Commercial paper and short-term borrowings— 326 
Total borrowings5,650 5,151 
Less: Borrowings due within one year1,014 1,126 
Long-term borrowings$4,636 $4,025 
(1)The carrying value of the euro-denominated 1.50% notes due May 2023 and 1.875% notes due November 2026 will fluctuate with changes in the euro to U.S. dollar exchange rate. The carrying value of these euro-denominated borrowings have been designated as non-derivative net investment hedges of a portion of the Company's net investments in euro functional-currency denominated subsidiaries to offset foreign currency fluctuations.
(2)Net proceeds from the bond issuance will be used to finance or refinance existing and future eligible green investment initiatives which contribute to Eastman's environmental sustainability strategy (a green bond).

In March 2023, the Company issued $500 million aggregate principal amount of 5.75% notes due March 2033 in a registered public offering (the "2023 Notes"). Net proceeds from the 2023 Notes will be allocated to eligible projects to advance Eastman's sustainability goals of mitigating climate change, mainstreaming circular economy, and caring for society. Proceeds from the sale of the notes, net of original issue discounts, and issuance costs were $496 million.

Credit Facility, Term Loans, and Commercial Paper Borrowings

In first quarter 2023, the Company borrowed $300 million under a delayed draw two-year term loan (the "2024 Term Loan"), which was executed in fourth quarter 2022. As of March 31, 2023, the 2024 Term Loan balance outstanding was $300 million with a variable interest rate of 6.07%. In 2022, the Company borrowed $500 million under a five-year term loan agreement (the "2027 Term Loan"). The 2027 Term Loan balance outstanding was $499 million at both March 31, 2023 and December 31, 2022, with variable interest rates of 5.92% and 5.55%, respectively. Borrowings under the 2024 Term Loan and 2027 Term Loan are subject to interest at varying spreads above quoted market rates.

The Company has access to a $1.50 billion revolving credit agreement (the "Credit Facility") expiring December 2026 that was amended in March 2023. The amendment replaced the London Interbank Offered Rate-based ("LIBOR") reference interest rate option with a reference interest rate option based upon Term Secured Overnight Financing Rate ("SOFR") (as defined in the Credit Facility). All other material terms of the Credit Facility remain unchanged. Borrowings under the Credit Facility are subject to interest at varying spreads above quoted market rates and a commitment fee is paid on the total unused commitment. The Credit Facility includes sustainability-linked pricing terms, provides available liquidity for general corporate purposes, and supports commercial paper borrowings. Commercial paper borrowings are classified as short-term. At March 31, 2023 and December 31, 2022, the Company had no outstanding borrowings under the Credit Facility. At March 31, 2023, the Company had no outstanding commercial paper borrowings. At December 31, 2022, the Company's commercial paper borrowings were $326 million with a weighted average interest rate of 4.85%.
The Credit Facility, the 2024 Term Loan, and the 2027 Term Loan contain customary covenants, including requirements to maintain certain financial ratios, that determine the events of default, amounts available, and terms of borrowings. The Company was in compliance with all applicable covenants at both March 31, 2023 and December 31, 2022.

Fair Value of Borrowings

Eastman has classified its total borrowings at March 31, 2023 and December 31, 2022 under the fair value hierarchy as defined in the accounting policies in Note 1, "Significant Accounting Policies", to the consolidated financial statements in Part II, Item 8 of the Company's 2022 Annual Report on Form 10-K. The fair value for fixed-rate debt securities is based on quoted market prices for the same or similar debt instruments and is classified as Level 2. The fair value for the Company's other borrowings, under the Term Loans and commercial paper, equals the carrying value and is classified as Level 2. At March 31, 2023 and December 31, 2022, the fair values of total borrowings were $5.5 billion and $4.9 billion, respectively. The Company had no borrowings classified as Level 1 and Level 3 as of March 31, 2023 and December 31, 2022.