Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.21.2
Debt
 6 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
Debt Debt
 
Debt consists of the following ($ in millions):
  June 30, 2021 December 31, 2020
$2,200 million 4.75% Senior Notes due January 15, 2025
 $ —  $ 2,230 
$1,800 million 5.375% Senior Notes due June 1, 2026
 1,800  1,800 
$750 million 5.375% Senior Notes due August 15, 2026
 790  794 
$2,500 million 4.25% Senior Notes due December 15, 2027
 2,483  2,482 
$3,500 million 4.625% Senior Notes due December 15, 2029
 3,500  3,500 
$2,000 million 3.375% Senior Notes due February 15, 2030
 2,000  2,000 
$2,200 million 3.00% Senior Notes due October 15, 2030
 2,200  2,200 
$2,200 million 2.50% Senior Notes due March 1, 2031
 2,200  — 
Total senior notes 14,973  15,006 
Term loan facility 1,450  1,450 
Revolving credit agreement 154  97 
Mortgage notes payable —  50 
Construction loan payable 187  180 
Finance leases and other 180  153 
Debt issuance costs (155) (157)
Total debt 16,789  16,779 
Less current portion (253) (97)
 Long-term debt $ 16,536  $ 16,682 

Senior Notes

In July 2021, the Company issued $1,800 million 2.45% Senior Notes due 2028 (the 2028 Notes). The Company intends to use the net proceeds from the offering of the 2028 Notes to finance a portion of the cash consideration payable in connection with its previously announced acquisition of Magellan Health Inc. and to pay related fees and expenses. If the Magellan Acquisition is not completed, the Company expects to use the net proceeds of the offering for debt repayment and general corporate purposes.

In February 2021, the Company issued $2,200 million 2.50% Senior Notes due 2031 (the 2031 Notes). In conjunction with the 2031 Notes offering, the Company completed a tender offer (the Tender Offer) to purchase for cash, subject to certain conditions, any and all of the outstanding aggregate principal amount of the $2,200 million 4.75% Senior Notes due 2025 (the 2025 Notes). The Company used the net proceeds from the 2031 Notes, together with available cash on hand, to fund the purchase price for the 2025 Notes accepted for purchase in the Tender Offer (approximately 36% of the aggregate principal amount outstanding) and used the remaining proceeds to redeem any of the 2025 Notes that remained outstanding following the Tender Offer, including all premiums, accrued interest and costs and expenses related to the redemption. The Company recognized a pre-tax loss on extinguishment of $46 million on the redemption of the 2025 Notes, including the call premium and write-off of unamortized debt issuance costs.

Construction Loan

In October 2017, the Company executed a $200 million non-recourse construction loan to fund the expansion of the Company's corporate headquarters. Until final completion of the construction project, which occurred in July 2021, the loan bore interest based on one month LIBOR plus 2.70%, which reduced to LIBOR plus 2.00% at the time construction was completed. The agreement contains financial and non-financial covenants similar to those contained in the Company Credit Facility. The Company guaranteed completion of the construction project associated with the loan. In April 2021, the Company finalized the one year extension of the construction loan maturing in April 2022. As of June 30, 2021, the Company had $187 million in borrowings outstanding under the loan, which is included in the current portion of long-term debt.

Mortgage Notes Payable

The Company paid its non-recourse mortgage note of $50 million in January 2021. The mortgage note was collateralized by its corporate headquarters building and bore a 5.14% interest rate.