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FINANCING ARRANGEMENTS
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
FINANCING ARRANGEMENTS
Note 6 — FINANCING ARRANGEMENTS
For each of the periods presented, total debt consisted of the following:
As of December 31, 2022 (in millions)Principal AmountUnamortized discount and debt issuance costNet DebtWeighted average interest rate
Senior secured revolving credit facility due 2026$— $— $— — %
Senior secured term loan due 2026426.9 3.3 423.6 3.81 %
Senior secured term loan due 2029404.7 19.2 385.5 6.53 %
5.75% senior notes due 2025
650.0 4.8 645.2 5.75 %
7.125% senior notes due 2030
725.0 10.1 714.9 7.125 %
Other Debt9.7 — 9.7 
Total Debt2,216.3 37.4 2,178.9 
Less short-term debt2.2 — 2.2 
Total long-term debt, net of current portion$2,214.1 $37.4 $2,176.7 
As of December 31, 2021 (in millions)Principal AmountUnamortized discount and debt issuance costNet DebtWeighted average interest rate
Senior secured revolving credit facility due 2026$— $— $— — %
5.25% senior notes due 2023
600.0 1.4 598.6 5.25 %
5.75% senior notes due 2025
650.0 6.8 643.2 5.75 %
Senior secured term loan due 2026611.5 6.2 605.3 1.85 %
Other Debt11.8 — 11.8 
Total Debt1,873.3 14.4 1,858.9 
Less short-term and current portion of long-term debt8.6 — 8.6 
Total long-term debt, net of current portion$1,864.7 $14.4 $1,850.3 

On August 10, 2022, the Company entered into an indenture with U.S. Bank Trust Company, National Association, as trustee, relating to the issuance by the Company of $725.0 million aggregate principal amount of 7.125% Senior Notes due 2030 (the 2030 Notes). The Company received proceeds of $715.9 million net of financing costs related to the issuance. The 2030 Notes bear interest at a rate of 7.125% per annum. Interest on the 2030 Notes is payable semi-annually in arrears on February 1 and August 1 of each year, commencing on February 1, 2023. The 2030 Notes will mature on August 1, 2030.
On August 29, 2022, the Company entered into the Term Loan Amendment relating to the Credit Agreement, dated as of November 12, 2015, by and among Avient, Citibank, N.A., as administrative agent, and the lenders party thereto, with Citibank, N.A., as administrative agent, and the other agents and lenders named therein. Pursuant to the Term Loan Amendment, Avient, among other things, incurred a new tranche of Senior Secured Term Loan due 2029 (the 2029 Term Loan) in an aggregate principal amount equal to $575.0 million. The 2029 Term Loan was fully drawn on August 29, 2022, and the Company received proceeds of $537.6 million, net of financing costs and discounts. The interest rates per annum applicable to the 2029 Term Loan under the Credit Agreement are either (i) Adjusted Term SOFR (as defined in the Term Loan Amendment) plus 3.25% or (ii) a Base Rate (as defined in the Term Loan Amendment) plus 2.25%. The Term Loan Amendment also modified the interest rates per annum applicable to the Senior Secured Term Loan due 2026, which are either (i) Adjusted Term SOFR (as defined in the Term Loan Amendment) plus 3.06% or (ii) a Base Rate (as defined in the Term Loan Amendment) plus 2.06%. The other terms and conditions that apply to the 2029 Term Loan are substantially the same as the terms and conditions that applied to the existing term loan under the Credit Agreement immediately prior to the Term Loan Amendment.
On November 2, 2022, the Company redeemed the entire outstanding $600 million aggregate principal amount of the 5.25% Senior Notes due March 15, 2023. The notes were redeemed at a redemption price equal to 101.0% of the principal amount of the notes plus accrued and unpaid interest to the redemption date. The redemption premium of $6.0 million and $0.4 million related to the write-off of unamortized issuances costs and discounts are included within Interest expense, net for the year ended December 31, 2022.
On November 2, 2022 and December 2, 2022, the Company made voluntary prepayments totaling $150.0 million and $200.0 million, respectively, on a pro-rata basis against the outstanding principal balances of our senior secured term loans in accordance with the provisions of the Credit Agreement. The prepayments were first applied to the 1% principal payments due annually and then to the remaining principal balances due on maturity. We
recognized $9.6 million related to the write-off of unamortized issuance costs and discounts associated within Interest expense, net for the year ended December 31, 2022 due to the prepayments.
Also included in Interest expense, net for the year ended December 31, 2022 are costs associated with committed financing of $10.0 million related to the APM Acquisition.
The Company maintains a senior secured revolving credit facility, which matures on October 26, 2026 and provides a maximum borrowing facility size of $500.0 million, subject to a borrowing base with advances against certain U.S. and international accounts receivable, inventory and other assets as specified in the agreement. As of December 31, 2022, we had no borrowings outstanding under our Revolving Credit Facility, which had remaining availability of $246.2 million.
The agreements governing our Revolving Credit Facility and our senior secured term loan, and the indentures and credit agreements governing other debt, contain a number of customary financial and restrictive covenants that, among other things, limit our ability to: sell or otherwise transfer assets, including in a spin-off, incur additional debt or liens, consolidate or merge with any entity or transfer or sell all or substantially all of our assets, pay dividends or make certain other restricted payments, make investments, enter into transactions with affiliates, create dividend or other payment restrictions with respect to subsidiaries, make capital investments and alter the business we conduct. As of December 31, 2022, we were in compliance with all covenants.
The estimated fair value of Avient’s debt instruments at December 31, 2022 and 2021 was $2,153.1 million and $1,917.7 million, respectively, compared to carrying values of $2,178.9 million and $1,858.9 million as of December 31, 2022 and 2021, respectively. The fair value of Avient’s debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and represent Level 2 measurements within the fair value hierarchy.
Aggregate maturities of the principal amount of debt for the next five years and thereafter are as follows:
(In millions)
2023$2.2 
20242.2 
2025652.2 
2026427.4 
20270.4 
Thereafter1,132.0 
Aggregate maturities$2,216.3 
Included in Interest expense, net for the years ended December 31, 2022, 2021 and 2020 was interest income of $34.0 million, $17.5 million, and $19.9 million, respectively. Total interest paid on debt, net of the impact of hedging (see Note 16, Derivatives and Hedging), was $69.4 million in 2022, $72.6 million in 2021 and $61.1 million in 2020.