fun88(й)ٷվ

Quarterly report pursuant to Section 13 or 15(d)

Note 8 - Debt

v3.22.1
Note 8 - Debt
 3 Months Ended
Mar. 31, 2022
Notes to Financial Statements
Debt Disclosure [Text Block]

8. DEBT

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

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March 31,

December 31,

2022

2021

Senior Credit Facilities:

Revolving facility

 $ � $ �

Amounts outstanding under A/R programs

 � �

Senior notes

 1,468 1,473

Variable interest entities

 50 45

Other

 32 32

Total debt

 $ 1,550 $ 1,550

Current portion of debt

 $ 21 $ 12

Long-term portion of debt

 1,529 1,538

Total debt

 $ 1,550 $ 1,550

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Direct and Subsidiary Debt

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Substantially all of our debt, including the facilities described below, has been incurred by our subsidiaries (primarily fun88(й)ٷվ International). fun88(й)ٷվ 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 sheets as a reduction to the face amount of that debt liability. As of March 31, 2022 and December 31, 2021, the amount of debt issuance costs directly reducing the debt liability was $9million and $10million, 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 March 31, 2022, our $1.2billion senior unsecured revolving credit facility (“Revolving Credit Facility�) was as follows (monetary amounts in millions):

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Unamortized

discounts and

Committed

Principal

debt issuance

Carrying

Facility

amount

outstanding

costs

value

Interest rate(2)

Maturity

Revolving Credit Facility

 $ 1,200 $ � (1) $ � (1) $ � (1)

USD LIBOR plus 1.50%

 2023

(1)

On March 31, 2022, we had an additional $3million (U.S. dollar equivalents) of letters of credit and bank guarantees issued and outstanding under ourRevolving Credit Facility.

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(2)

Interest rates on borrowings under the Revolving Credit Facility vary based on the type of loan and fun88(й)ٷվ International’s debt ratings. The representative interest rate as of March 31, 2022 was 1.50% above LIBOR.

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A/R Programs

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

On July 1, 2021, we entered into amendments to ourA/R Programsthat, among other things, extended the respective scheduled termination dates of our A/R Programs from April 2022 to July 2024.

Information regarding our A/R Programs as of March 31, 2022 was as follows (monetary amounts in millions):

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Maximum funding

Amount

Facility

Maturity

availability(1)

outstanding

Interest rate(2)

U.S. A/R Program

July 2024

 $ 150 $ �

(3)

Applicable rate plus 0.90%

EU A/R Program

July 2024

 � 100 � �

Applicable rate plus 1.30%

(or approximately $111)

(1)

The amount of actual availability under our A/R Programs may be lower based on the level of eligible receivables sold, changes in the credit ratings of our customers, customer concentration levels and certain characteristics of the accounts receivable being transferred, as defined in the applicable agreements.

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(2)

The applicable rate for our U.S. A/R Program is defined by the lender as USD LIBOR. The applicable rate for our EU A/R Program is either USD LIBOR,EURIBOR or SONIA (Sterling Overnight Interbank Average Rate). In anticipation of the transition away from USD LIBOR, the amendments we made in July 2021 to our A/R Programs incorporated replacement rates for the USD LIBOR.

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(3)

As of March 31, 2022, we had approximately $8million (U.S. dollar equivalents) of letters of credit issued and outstanding under our U.S. A/R Program.

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As of March 31, 2022 and December 31, 2021, $372million and $324million, respectively, of accounts receivable were pledged as collateral under our A/R Programs.

Senior Notes

On January 15, 2021, fun88(й)ٷվ International redeemed in full �445 million (approximately $541million) in aggregate principal amount of our 5.125% senior notes due 2021 (�2021 Senior Notes�) at the redemption price equal to 100% of the principal amount of the notes, plus accrued and unpaid interest to, but not including, the redemption date. In connection with this redemption, we incurred an incrementalcash tax liability of approximately $15million in the first quarter of 2021 related to foreign currency exchange gains.

Variable Interest Entity Debt

As of March 31, 2022, AAC, our consolidated 50%-owned joint venture, had $50million outstanding under its loan commitments and debt financing arrangements. As of March 31, 2022, we have $17million classified as current debt and $33million as long-term debt on our consolidated balance sheets. We do not guarantee these loan commitments, and AAC is not a guarantor of any of our other debt obligations.

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 Revolving Credit Facility, our A/R Programs and our senior notes.​�