乐天堂fun88(中国区)官方网站

8. DEBT

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Outstanding debt, net of debt issuance costs, consisted of the following (dollars in millions):

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乐天堂fun88(中国区)官方网站 Corporation

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乐天堂fun88(中国区)官方网站 International

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Direct and Subsidiary Debt

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乐天堂fun88(中国区)官方网站 Corporation鈥檚 direct debt and guarantee obligations consist of a guarantee of certain indebtedness incurred from time to time to finance certain insurance premiums. Substantially all of our other debt, including the facilities described below, has been incurred by our subsidiaries (primarily 乐天堂fun88(中国区)官方网站 International). 乐天堂fun88(中国区)官方网站 Corporation is not a guarantor of such subsidiary debt.

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Certain of our subsidiaries have third-party debt agreements that contain certain restrictions with regard to dividends, distributions, loans or advances. In certain circumstances, the consent of a third party would be required prior to the transfer of any cash or assets from these subsidiaries to us.

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Debt Issuance Costs

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We record debt issuance costs related to a debt liability on the balance sheet as a reduction to the face amount of that debt liability. For June 30, 2020 and December 31, 2019, the amount of debt issuance costs directly reducing the

debt liability was $10 million and $11 million, respectively. We record the amortization of debt issuance costs as interest expense.

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Revolving Credit Facility

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As of June 30, 2020, our $1.2 billion senior unsecured revolving credit facility (鈥�2018 Revolving Credit Facility鈥�) was as follows (dollars in millions):

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Term Loan Credit Facility

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On September 24, 2019, 乐天堂fun88(中国区)官方网站 International entered into a 364-day term loan facility (the 鈥�2019 Term Loan鈥�), pursuant to which 乐天堂fun88(中国区)官方网站 International borrowed an aggregate principal amount of 鈧�92 million (or $101 million equivalent). We used the net proceeds from the 2019 Term Loan to finance our acquisition of the 50% noncontrolling interest that we did not own in the Sasol-乐天堂fun88(中国区)官方网站 maleic anhydride joint venture. Borrowings under the 2019 Term Loan bear interest at an interest rate of EURIBO Rate plus 0.75%, with a EURIBO Rate floor at zero. Unless earlier terminated or prepaid in accordance with the credit agreement governing the 2019 Term Loan, the 2019 Term Loan will mature on September 22, 2020. The 2019 Term Loan is subject to substantially the same terms and conditions as the 2018 Revolving Credit Facility.

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A/R Programs

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Our U.S. accounts receivable securitization program (鈥淯.S. A/R Program鈥�) and our European accounts receivable securitization program (鈥淓U A/R Program鈥� and collectively with the U.S. A/R Program, 鈥淎/R Programs鈥�) are structured so that we transfer certain of our trade receivables to the U.S. special purpose entity (鈥淯.S. SPE鈥�) and the European special purpose entity (鈥淓U SPE鈥�) in transactions intended to be true sales or true contributions. The receivables collateralize debt incurred by the U.S. SPE and the EU SPE.

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In December 2019, we entered into amendments to our EU A/R program (the 鈥淓uropean Amendment鈥�) and our U.S. A/R Program (the 鈥淯.S. Amendment鈥�). The European Amendment allowed the removal of pledged obligors related to the Chemical Intermediates Businesses sold to Indorama. The U.S. Amendment allowed the removal of pledged obligors related to the Chemical Intermediates Businesses sold to Indorama as well as reduced the maximum funding capacity from $250 million to $150 million upon completion of the sale on January 3, 2020.

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Information regarding our A/R Programs as of June 30, 2020 was as follows (monetary amounts in millions):

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As of June 30, 2020 and December 31, 2019, $190 million and $221 million, respectively, of accounts receivable were pledged as collateral under our A/R Programs.

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Notes

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On March 13, 2019, 乐天堂fun88(中国区)官方网站 International completed a $750听million offering of its 4.50% senior notes due 2029 (鈥�2029 Senior Notes鈥�). On March 27, 2019, 乐天堂fun88(中国区)官方网站 International applied the net proceeds of the offering of the 2029 Senior Notes to redeem in full $650 million in aggregate principal amount of its 4.875% senior notes due 2020 (鈥�2020 Senior Notes鈥�) and also paid associated costs and accrued interest of $21 million and $12 million, respectively. In addition, we recognized a loss on early extinguishment of debt of $23 million in the first quarter of 2019.

The 2029 Senior Notes bear interest at 4.50% per year, payable semi-annually on May 1 and November 1, and will mature on May 1, 2029. 乐天堂fun88(中国区)官方网站 International may redeem the 2029 Senior Notes in whole or in part at any time prior to February听1, 2029 at a price equal to 100% of the principal amount thereof plus a 鈥渕ake-whole鈥� premium and accrued and unpaid interest. 乐天堂fun88(中国区)官方网站 International may redeem the 2029 Senior Notes at any time, in whole or from time to time in part, on or after February 1, 2029 at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest.

Note Payable from 乐天堂fun88(中国区)官方网站 International to 乐天堂fun88(中国区)官方网站 Corporation

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During the first quarter of 2020, our loan of $380 million to our subsidiary 乐天堂fun88(中国区)官方网站 International was repaid to us in full.

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Compliance with Covenants

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We believe that we are in compliance with the covenants contained in the agreements governing our material debt instruments, including our 2018 Revolving Credit Facility, our 2019 Term Loan, our A/R Programs and our notes.