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Debt
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Debt

9. Debt

Debt consists of (in millions):

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

$1.1 billion in Senior Notes, interest at 3.95% payable

   semiannually, principal due on December 1, 2042

 

 

1,090

 

 

 

1,089

 

$0.5 billion in Senior Notes, interest at 3.60% payable

   semiannually, principal due on December 1, 2029

 

 

494

 

 

 

493

 

$0.2 billion in Senior Notes, interest at 2.60% payable

   semiannually, principal due on December 1, 2022

 

 

—

 

 

 

182

 

Other debt

 

 

129

 

 

 

70

 

Total Debt

 

 

1,713

 

 

 

1,834

 

Less current portion

 

 

5

 

 

 

—

 

Long-term debt

 

$

1,708

 

 

$

1,834

 

 

Principal payments of debt for years subsequent to 2021 are as follows (in millions):

 

2022

 

 

5

 

2023

 

 

26

 

2024

 

 

10

 

2025

 

 

21

 

2026

 

 

11

 

Thereafter

 

 

1,640

 

 

 

$

1,713

 

 

On April 8, 2021, the Company extended the maturity date of its revolving credit facility one additional year to October 30, 2025. The facility has a borrowing capacity of $2.0 billion through October 30, 2024, and a borrowing capacity of $1.7 billion from October 31, 2024, to October 30, 2025. The Company has the right to increase the commitments under this agreement to an aggregate amount of up to $3.0 billion upon the consent of only those lenders holding any such increase. Interest under the multicurrency facility is based upon LIBOR, NIBOR or CDOR plus 1.125% subject to a ratings-based grid or the U.S. prime rate. The credit facility contains a financial covenant regarding maximum debt-to-capitalization ratio of 60%. As of December 31, 2021, the Company was in compliance with a debt-to-capitalization ratio of 27.8% and had no outstanding letters of credit issued under the facility, resulting in $2.0 billion of available funds.

Additionally, the Company’s joint venture with Aramco has a $150 million bank line of credit for the construction of a facility in Saudi Arabia.  Interest under the bank line of credit is based upon LIBOR plus 1.40%. The bank line of

credit contains a financial covenant regarding maximum debt-to-equity ratio of 75%. As of December 31, 2021, the Company was in compliance. The line of credit repayment schedule begins in December 2022 with final payment no later than December 2032. As of December 31, 2021, the Company had $102 million in borrowings related to this line of credit. The first payment in December 2022 will be approximately $5 million. The Company can repay the entire outstanding facility balance without penalty at its sole discretion. Other debt at December 31, 2021 included $27 million of funding provided by minority interest partners of NOV consolidated joint ventures.

On April 9, 2021, the Company repaid the entire outstanding balance of $182 million of its 2.60% unsecured Senior Notes due December 1, 2022 using available cash balances. Upon redemption, the Company paid $191 million, which included a redemption premium of $6.8 million as well as accrued and unpaid interest of $1.7 million. As a result of the redemption, the Company recorded a loss on extinguishment of debt of $7.1 million, which included the redemption premium of $6.8 million and non-cash charges of $0.3 million to write-off of unamortized discount and debt issuance costs.

The Company had $444 million of outstanding letters of credit at December 31, 2021, primarily in the U.S. and Norway, that are under various bilateral letter of credit facilities. Letters of credit are issued as bid bonds, advanced payment bonds and performance bonds.

At December 31, 2021 and 2020, the fair value of the Company’s unsecured Senior Notes approximated $1,610 million and $1,833 million, respectively. The fair value of the Company’s debt is estimated using Level 2 inputs in the fair value hierarchy and is based on quoted prices for those or similar instruments. At December 31, 2021 and 2020, the carrying value of the Company’s unsecured Senior Notes approximated $1,584 million and $1,764 million, respectively.