Debt

3 Months Ended

Apr. 04, 2020

A summary of long-term debt, net of unamortized debt issuance costs and unamortized original issue premium (discount), and the related weighted average interest rates is shown below (in millions):



	April 4, 2020
Debt Instrument	Long-Term Debt		Unamortized Debt Issuance Costs			Unamortized Original Issue Premium (Discount)			Long-Term Debt, Net			Weighted Average Interest Rate
Credit Agreement — Term Loan Facility	$	231.2	$	(0.9	)	$	—		$	230.3		2.12%
3.8% Senior Notes due 2027 (the "2027 Notes")	750.0		(4.5		)	(3.9		)	741.6			3.885%
4.25% Senior Notes due 2029 (the "2029 Notes")	375.0		(2.8		)	(1.1		)	371.1			4.288%
3.5% Senior Notes due 2030 (the "2030 Notes")	350.0		(2.8		)	(0.8		)	346.4			3.525%
5.25% Senior Notes due 2049 (the "2049 Notes")	625.0		(6.4		)	14.5			633.1			5.103%
	$	2,331.2	$	(17.4	)	$	8.7		$	2,322.5
Less — Current portion									(15.7		)
Long-term debt									$	2,306.8



	December 31, 2019
Debt Instrument	Long-Term Debt		Unamortized Debt Issuance Costs			Unamortized Original Issue Discount			Long-Term Debt, Net			Weighted Average Interest Rate
Credit Agreement — Term Loan Facility	$	234.4	$	(1.0	)	$	—		$	233.4		2.88%
5.25% Senior Notes due 2025 (the "2025 Notes")	650.0		(4.2		)	—			645.8			5.25%
2027 Notes	750.0		(4.7		)	(4.1		)	741.2			3.885%
2029 Notes	375.0		(2.9		)	(1.1		)	371.0			4.288%
2049 Notes issued 2019	325.0		(3.3		)	(5.3		)	316.4			5.363%
	$	2,334.4	$	(16.1	)	$	(10.5	)	2,307.8
Less — Current portion									(14.1		)
Long-term debt									$	2,293.7

Senior Notes

The issuance, maturity and interest payment dates of the Company's senior unsecured 2027 Notes, 2029 Notes, 2030 Notes and 2049 Notes (together, the "Notes") are shown below:



Note	Issuance Date(s)	Maturity Date	Interest Payment Dates
2027 Notes	August 2017	September 15, 2027	March 15 and September 15
2029 Notes	May 2019	May 15, 2029	May 15 and November 15
2030 Notes	February 2020	May 30, 2030	May 30 and November 30
2049 Notes	May 2019 and February 2020	May 15, 2049	May 15 and November 15

In February 2020, the Company issued $350.0 million in aggregate principal amount at maturity of 2030 Notes and an additional $300.0 million in aggregate principal amount at maturity of 2049 Notes. The 2030 Notes have a stated coupon rate of 3.5% and were issued at 99.774% of par, resulting in a yield to maturity of 3.525%. The 2049 Notes have a stated coupon rate of 5.25% and were issued at 106.626% of par, resulting in a yield to maturity of 4.821%.

The net proceeds from the offering were $669.1 million after original issue discount. The proceeds were used to redeem the $650.0 million in aggregate principal amount of 2025 Notes at a redemption price equal to 102.625% of the principal amount of such 2025 Notes, plus accrued interest.

In connection with these transactions, the Company recognized a loss of $21.1 million on the extinguishment of debt and paid related issuance costs of $5.9 million in the three months ended April 4, 2020.

Covenants

Subject to certain exceptions, the indentures governing the Notes contain certain investment-grade style restrictive covenants that, among other things, limit the ability of the Company to: (i) create or permit certain liens and (ii) consolidate, merge or sell all or substantially all of the Company’s assets. The indentures governing the Notes also provide for customary events of default.

As of April 4, 2020, the Company was in compliance with all covenants under the indentures governing the Notes.

Credit Agreement

The Company's unsecured credit agreement (the "Credit Agreement"), dated August 8, 2017, consists of a $1.75 billion revolving credit facility (the "Revolving Credit Facility") and a $250.0 million term loan facility (the "Term Loan Facility"). In February 2020, the Company entered into an agreement to extend the maturity date of the Revolving Credit Facility by one year to August 8, 2024. The maturity date of the Term Loan Facility remains August 8, 2022.

In connection with the extension agreement, the Company paid related issuance costs of $1.0 million.

As of April 4, 2020, there were $1.0 billion of borrowings outstanding under the Revolving Credit Facility, which is reflected in current liabilities in the accompanying condensed consolidated balance sheet. As of December 31, 2019, there were no

borrowings outstanding under the Revolving Credit Facility. As of April 4, 2020 and December 31, 2019, there were $231.2 million and $234.4 million, respectively, of borrowings outstanding under the Term Loan Facility.

In the first three months of 2020, the Company made required principal payments of $3.1 million under the Term Loan Facility.

Advances under the Revolving Credit Facility and the Term Loan Facility generally bear interest based on (i) the Eurocurrency Rate (as defined in the Credit Agreement) or (ii) the Base Rate (as defined in the Credit Agreement) plus a margin, determined in accordance with a pricing grid. The range and the rate as of April 4, 2020, are shown below (in percentages):



	Eurocurrency Rate						Base Rate
					Rate as of						Rate as of
	Minimum		Maximum		April 4, 2020		Minimum		Maximum		April 4, 2020
Revolving Credit Facility	1.00	%	1.60	%	1.10	%	0.00	%	0.60	%	0.10	%
Term Loan Facility	1.125	%	1.90	%	1.25	%	0.125	%	0.90	%	0.25	%

A facility fee, which ranges from 0.125% to 0.30% of the total amount committed under the Revolving Credit Facility, is payable quarterly.

Covenants

The Credit Agreement contains various customary representations, warranties and covenants by the Company, including, without limitation, (i) covenants regarding maximum leverage, (ii) limitations on fundamental changes involving the Company or its subsidiaries and (iii) limitations on indebtedness and liens.

As of April 4, 2020, the Company was in compliance with all covenants under the Credit Agreement.

For further information related to the Company's debt, see Note 6, "Debt," to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.