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Long-Term and Other Debt | 9 Months Ended
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Sep. 30, 2020
Debt Disclosure [Abstract] |
Long-Term and Other Debt | Long-Term and Other Debt Issuance of 2025 Unsecured Notes and Redemption of 2021 Notes On July 1, 2020, we completed the issuance of $550 million in aggregate principal amount of 8.625% senior unsecured notes due 2025 in a private offering, for which we received the total net proceeds of $543 million. We used a portion of the net proceeds to redeem all $341 million of our outstanding 2021 Notes and paid accrued and unpaid interest thereon plus related premiums, fees and costs, which redemption was completed on July 17, 2020, and are using the remaining net proceeds to fund working capital and general corporate purposes. The 2025 Unsecured Notes were issued pursuant to an indenture dated as of July 1, 2020 (the “2025 Unsecured Notes Indenture”). We may redeem some or all of the 2025 Unsecured Notes at any time prior to July 1, 2022 at a redemption price equal to 100% of the principal amount of the 2025 Unsecured Notes plus accrued and unpaid interest, if any, to the date of the redemption plus a “make whole” premium. We may redeem some or all of the 2025 Unsecured Notes at any time on or after July 1, 2022 at the prices specified in the 2025 Unsecured Notes Indenture. The 2025 Unsecured Notes are senior obligations of SGI, rank equally to all SGI’s existing and future senior debt and rank senior to all of SGI’s existing and future debt that is expressly subordinated to the 2025 Unsecured Notes. The 2025 Unsecured Notes are guaranteed on a senior unsecured basis by SGC and all of its wholly owned domestic restricted subsidiaries (other than SGI, the unrestricted business entities comprising our SciPlay business segment and certain immaterial subsidiaries), subject to customary exceptions. Outstanding Debt and Finance Leases The following table reflects our outstanding debt (in order of Priority and Maturity):
| As of
| September 30, 2020 |  | December 31, 2019
| Final Maturity |  | Rate(s) |  | Face value |  | Unamortized debt discount/premium and deferred financing costs, net |  | Book value |  | Book value
Senior Secured Credit Facilities: |  |  |  |  |  |  |  |  |  |  |
SGI Revolver | 2024 |  | variable |  | $ | 635 |  |  | $ | — |  |  | $ | 635 |  |  | $ | 195 |
SGI Term Loan B-5 | 2024 |  | variable |  | 4,070 |  |  | (51) |  |  | 4,019 |  |  | 4,042 |
SciPlay Revolver | 2024 |  | variable |  | — |  |  | — |  |  | — |  |  | — |
SGI Senior Notes: |  |  |  |  |  |  |  |  |  |  |
2025 Secured Notes(1) | 2025 |  | 5.000% |  | 1,250 |  |  | (14) |  |  | 1,236 |  |  | 1,235 |
2026 Secured Euro Notes(2) | 2026 |  | 3.375% |  | 381 |  |  | (4) |  |  | 377 |  |  | 359 |
2025 Unsecured Notes | 2025 |  | 8.625% |  | 550 |  |  | (8) |  |  | 542 |  |  | — |
2026 Unsecured Euro Notes(2) | 2026 |  | 5.500% |  | 293 |  |  | (3) |  |  | 290 |  |  | 276 |
2026 Unsecured Notes | 2026 |  | 8.250% |  | 1,100 |  |  | (13) |  |  | 1,087 |  |  | 1,085 |
2028 Unsecured Notes | 2028 |  | 7.000% |  | 700 |  |  | (9) |  |  | 691 |  |  | 690 |
2029 Unsecured Notes | 2029 |  | 7.250% |  | 500 |  |  | (7) |  |  | 493 |  |  | 493 |
SGI Subordinated Notes: |  |  |  |  |  |  |  |  |  |  |
2021 Notes | 2021 |  | 6.625% |  | — |  |  | — |  |  | — |  |  | 339 |
Finance lease obligations as of September 30, 2020 payable monthly through 2023 and other(3) | 2023 |  | 4.652% |  | 8 |  |  | — |  |  | 8 |  |  | 11 |
Total long-term debt outstanding |  |  |  |  | $ | 9,487 |  |  | $ | (109) |  |  | $ | 9,378 |  |  | $ | 8,725 |
Less: current portion of long-term debt |  |  |  |  |  |  |  |  | (44) |  |  | (45) |
Long-term debt, excluding current portion |  |  |  |  |  |  |  |  | $ | 9,334 |  |  | $ | 8,680 |
Fair value of debt(4) |  |  |  |  | $ | 9,292 |  |  |  |  |  |  |
(1) In connection with the February 2018 Refinancing (see Note 15 in our 2019 Form 10-K), we entered into certain cross-currency interest rate swap agreements to achieve more attractive interest rates by effectively converting $460 million of the fixed-rate, U.S. Dollar-denominated 2025 Secured Notes, including the semi-annual interest payments through October 2023, to a fixed-rate Euro-denominated debt, with a fixed annual weighted average interest rate of approximately 2.946%. These cross-currency swaps have been designated as a hedge of our net investment in certain subsidiaries.
(2) We designated a portion of our 2026 Secured Euro Notes as a net investment non-derivative hedge of our investments in certain of our international subsidiaries that use the Euro as their functional currency in order to reduce the volatility in our operating results caused by the change in foreign currency exchange rates of the Euro relative to the U.S. Dollar (see Note 12 for additional information). The total change in the face value of the 2026 Secured Euro Notes and 2026 Unsecured Euro Notes due to changes in foreign currency exchange rates since the issuance was a reduction of $39 million, of which a $24 million and $26 million loss were recognized on remeasurement of debt in the Consolidated Statements of Operations for the three and nine months ended September 30, 2020, respectively.
(3) Includes $7 million related to certain revenue transactions presented as debt in accordance with ASC 470.
(4) Fair value of our fixed rate and variable interest rate debt is classified within Level 2 in the fair value hierarchy and has been calculated based on the quoted market prices of our securities.
Debt Maturities Maturities for our outstanding debt were as follows as of September 30, 2020:
Due |  | Total Principal Due |  |  |  | Series of Debt |  | Principal Due per Series of Debt
Remainder of 2020 |  | $ | 10 |  |  |  |  | Term Loan B-5 |  | $ | 10 |
2021 |  | 42 |  |  |  |  | Term Loan B-5 |  | 42 |
2022 |  | 42 |  |  |  |  | Term Loan B-5 |  | 42 |
2023 |  | 42 |  |  |  |  | Term Loan B-5 |  | 42 |
2024 |  | 4,569 |  |  |  |  | Term Loan B-5 |  | 3,934 |
|  |  | Drawn Revolving Credit Facility |  | 635 |
2025 and beyond |  | 4,774 |  |  |  |  | 2025 Secured Notes |  | 1,250 |
|  |  |  | 2025 Unsecured Notes |  | 550 |
|  |  |  | 2026 Secured Euro Notes |  | 381 |
|  |  |  | 2026 Unsecured Euro Notes |  | 293 |
|  |  |  | 2026 Unsecured Notes |  | 1,100 |
|  |  |  | 2028 Unsecured Notes |  | 700 |
|  |  |  | 2029 Unsecured Notes |  | 500 |
We were in compliance with the financial covenants under all debt agreements as of September 30, 2020 (see Note 1 for more detailed disclosure, including the amendment to SGI’s revolving credit facility). For additional information regarding the terms of our credit facilities, Secured Notes and Unsecured Notes, see Note 15 in our 2019 10-K. Loss on Debt Financing Transactions The following are components of the loss on debt financing transactions resulting from debt extinguishment and modification accounting for the three and nine months ended September 30, 2020 and 2019:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Repayment and cancellation of principal balance at premium | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 50 |
Unamortized debt (premium) discount and deferred financing costs, net | 1 |  |  | — |  |  | 1 |  |  | 10 |
Total loss on debt financing transactions | $ | 1 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 60 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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