Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt

v3.20.2
Long-Term Debt
3 Months Ended
May 02, 2020
Debt Disclosure [Abstract]  
Long-Term Debt Debt
($ in millions) May 2, 2020 May 4, 2019 February 1, 2020
Issue:      
8.125% Senior Notes Due 2019 $ —    $ 50    $ —   
5.65% Senior Notes Due 2020 (1)
105    110    105   
2017 Credit Facility (Matures in 2022) 1,179    118    —   
2016 Term Loan Facility (Matures in 2023) 1,521    1,572    1,540   
5.875% Senior Secured Notes Due 2023 (1)
500    500    500   
7.125% Debentures Due 2023 10    10    10   
8.625% Senior Secured Second Priority Notes Due 2025 (1)
400    400    400   
6.9% Notes Due 2026      
6.375% Senior Notes Due 2036 (1)
388    388    388   
7.4% Debentures Due 2037 313    313    313   
7.625% Notes Due 2097 500    500    500   
Total debt 4,918    3,963    3,758   
Unamortized debt issuance costs (34)   (45)   (37)  
Less: current portion (4,884)   (92)   (147)  
Total long-term debt $ —    $ 3,826    $ 3,574   

(1)These debt issuances contain a change of control provision that would obligate us, at the holders’ option, to repurchase the debt at a price of 101%.

On March 16 and March 19, 2020, the Company borrowed $800 million and $450 million, respectively, from the senior secured asset-based revolving credit facility (the 2017 Credit Facility). Borrowings under the 2017 Credit Facility bear interest, at the Company’s option, at a base rate or LIBOR, plus an applicable interest rate margin varying depending on the Company’s utilization of the 2017 Credit Facility. The rates on the borrowings as of May 2, 2020, range from 2.75% to 4.25%. The proceeds from the 2017 Credit Facility may be used for working capital needs or general corporate purposes.
As of May 2, 2020, there were $1,179 million in outstanding borrowings under the 2017 Credit Facility. Following the commencement of the Chapter 11 Cases, we do not have access to a revolving credit facility.

The commencement of the Chapter 11 Cases constitutes an event of default or termination event under all debt agreements of the Company. As a result, the Company has classified all of its outstanding debt as a current liability as of May 2, 2020.
Any efforts to enforce payment obligations related to the Company’s outstanding debt have been automatically stayed as a result of the filing of the Chapter 11 Cases, and the creditors’ rights of enforcement are subject to the applicable provisions of the Bankruptcy Code. See Note 14 for more information on the Chapter 11 Cases.

In April 2020, the Company did not make its scheduled payment of interest related to the 6.375% Senior Secured Notes Due 2036 and did not cure that default prior to commencement of the Chapter 11 Cases. During the period of the Chapter 11 Cases, the Company will make adequate protection payments, consisting of interest and fees, in respect of the obligations under the outstanding Senior Secured Notes Due 2023, the 2017 Credit Facility, and the 2016 Term Loan Facility. All other interest payments on pre-petition outstanding debt have been suspended.

For further information on the Company's debt structure in conjunction with the Chapter 11 Cases, see Note 14.