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Debt
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Debt
8.
Debt

Debt consists of (in millions):

 

 

 

March 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

$1.1 billion in Senior Notes, interest at 3.95% payable
   semiannually, principal due on December 1, 2042

 

$

1,090

 

 

$

1,090

 

$0.5 billion in Senior Notes, interest at 3.60% payable
   semiannually, principal due on December 1, 2029

 

 

494

 

 

 

494

 

Other debt

 

 

130

 

 

 

129

 

Total Debt

 

 

1,714

 

 

 

1,713

 

                Less current portion

 

 

5

 

 

 

5

 

Long-term debt

 

$

1,709

 

 

$

1,708

 

 

The Company has a revolving credit facility with 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 1.25% 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 March 31, 2022, the Company was in compliance with a debt-to-capitalization ratio of 28.1% 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 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 March 31, 2022, the Company was in compliance. The line of credit repayment schedule begins in December 2022 with final payment no later than June 2032. As of March 31, 2022, the Company had $103 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 March 31, 2022 included $27 million of funding provided by minority interest partners of NOV consolidated joint ventures.

The Company had $437 million of outstanding letters of credit at March 31, 2022, 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 March 31, 2022 and December 31, 2021, the fair value of the Company’s unsecured Senior Notes approximated $1,466 million and $1,610 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 of similar instruments. At March 31, 2022 and December 31, 2021, the carrying value of the Company’s unsecured Senior Notes approximated $1,584 million.