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v3.22.2

Indebtedness | 6 Months Ended
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Jul. 02, 2022
Debt Disclosure [Abstract] |
Indebtedness | INDEBTEDNESS On April 20, 2022, we and our wholly owned subsidiary, Perrigo Investments, LLC, entered into new senior secured credit facilities that consist of (i) a $1.0 billion five-year revolving credit facility (the “2022 Revolver”), (ii) a $500 million five-year Term Loan A facility (the “2022 Term Loan A Facility”), and (iii) a $1.1 billion seven-year Term Loan B facility (the “2022 Term Loan B Facility” and, together with the 2022 Revolver and 2022 Term Loan A Facility, the “New Senior Secured Credit Facilities”), pursuant to a new Term Loan and Revolving Credit Agreement. The New Senior Secured Credit Facilities are fully guaranteed, along with any hedging or cash management obligations entered into with a lender, by us and certain of our direct and indirect wholly-owned subsidiaries organized in the United States, Ireland, Belgium and England and Wales (subject to certain exceptions) (the “Guarantor Subsidiaries”). The Guarantor Subsidiaries and Perrigo Investments, LLC provide full and unconditional guarantees, jointly and severally, on a senior unsecured basis, of the 5.300% Notes due 2043 issued by the Company, and the Guarantor Subsidiaries, Perrigo Investments, LLC and the Company provide full and unconditional guarantees, jointly and severally, on a senior unsecured basis, of the 3.900% Notes due 2024, the 4.375% Notes due 2026, the 4.400% Notes due 2030 and the 4.900% Notes due 2044 issued by Perrigo Finance Unlimited Company. Total borrowings are summarized as follows (in millions):
|  |  |  |  | July 2, 2022 |  | December 31, 2021
Term loan |  |  |  |  |
| 2019 Term loan due August 15, 2022(1) |  |  | $ | — |  |  | $ | 600.0 |
| 2022 Term loan A due April 1, 2027 |  |  | 500.0 |  |  | — |
| 2022 Term loan B due April 1, 2029 |  |  | 1,100.0 |  |  | — |
| Total term loans |  |  | 1,600.0 |  |  | 600.0 |
Notes and Bonds |  |  |  |  |
| Coupon | Due |  |  |  |  |
| 5.105% | July 28, 2023(1,2) |  |  | $ | — |  |  | $ | 153.5 |
| 4.000% | November 15, 2023(1) |  |  | — |  |  | 215.6 |
| 3.900% | December 15, 2024 |  |  | 700.0 |  |  | 700.0 |
| 4.375% | March 15, 2026 |  |  | 700.0 |  |  | 700.0 |
| 4.400% | June 15, 2030(3) |  |  | 750.0 |  |  | 750.0 |
| 5.300% | November 15, 2043 |  |  | 90.5 |  |  | 90.5 |
| 4.900% | December 15, 2044 |  |  | 303.9 |  |  | 303.9 |
| Total notes and bonds |  |  | 2,544.4 |  |  | 2,913.5 |
Other financing | 22.8 |  |  | 25.8 |
Unamortized premium (discount), net | (17.3) |  |  | (4.8) |
Deferred financing fees | (33.0) |  |  | (14.0) |
Total borrowings outstanding | 4,116.9 |  |  | 3,520.5 |
| Current indebtedness | (30.8) |  |  | (603.8) |
Total long-term debt less current portion | $ | 4,086.1 |  |  | $ | 2,916.7 |
(1) Redeemed in connection with the New Senior Secured Credit Facilities entered into during the second quarter of 2022. (2) Debt denominated in euros subject to fluctuations in the euro-to-U.S. dollar exchange rate. (3) The coupon rate noted above is that as of July 2, 2022, following a step up in rate from 3.150% to 3.900%, effective December 16, 2021. Due to a credit ratings downgrade by S&P and Moody's in the first quarter of 2022, the interest rate has stepped up from 3.900% to 4.400% starting after June 15, 2022. Revolving Credit Agreements On April 20, 2022 we terminated the revolving credit agreement maturing in March 2023 (the "2018 Revolver") and entered into the 2022 Revolver. There we re no borrowings outstanding under the 2022 Revolver or 2018 Revolver as of July 2, 2022 or December 31, 2021, respectively. Term Loan and Notes On April 20, 2022, we repaid the prior $600.0 million term loan, maturing on August 15, 2022 (the "2019 Term Loan") with the proceeds of the New Senior Secured Credit Facilities. The remaining $500.0 million of proceeds were used to redeem the 4.00% Senior Notes due 2023 on May 19, 2022 and the 5.1045% Guaranteed Senior Notes due 2023 on May 19, 2022. In relation to the New Senior Secured Credit Facilities, we deferred $30.8 million of financing fees, which will be amortized to interest expense over the term of the facilities. We recorde d $9.3 million in Los s on extinguishment of debt on the Condensed Statement of Operations, consisting of the write-off of certain new and previously deferred financing fees and make whole payments on the redeemed 4.00% Senior Notes due 2023. The proceeds from the New Senior Secured Credit Facilities were also used, in part, along with cash on hand to fund the acquisition of HRA Pharma (Refer to Note 3). We had $1.1 billion and $500.0 million outstanding under our 2022 Term Loan B Facility and 2022 Term Loan A Facility as of July 2, 2022, respectively. There we re no borrowings outstanding under our 2019 Term Loan as of July 2, 2022. We had $600.0 million outstanding under our 2019 Term Loan as of December 31, 2021. We are in compliance with all the covenants under our debt agreements. Other Financing We have overdraft facilities available that we use to support our cash management operations. We report any balances outstanding in the above table under "Other financing". Th ere were no borrowings o utstanding under the facilities as of July 2, 2022 or December 31, 2021. In June 2020, we incurred debt of $34.3 million related to our equity method investment in Kazmira pursuant to two promissory notes. In December 2020, we repaid the $3.7 million balance due on the November 2020 portion of the promissory notes. In June 2021, we repaid the $5.8 million balance due on the May 2021 portion of the promissory notes and in December 2021, we repaid the $24.8 million balance due on the November 2021 portion, settling the debt in full. We have financing leases that are reported in the above table under "Other financing" (refer to Note 10).

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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 https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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