v3.22.2.2
Indebtedness
 9 Months Ended
Oct. 01, 2022
Debt Disclosure [Abstract]  
Indebtedness INDEBTEDNESS On April 20, 2022, we and our wholly owned subsidiary, Perrigo Investments, LLC, entered into new senior secured credit facilities that consist of (i) a $1.0 billion five-year revolving credit facility (the “2022 Revolver”), (ii) a $500 million five-year Term Loan A facility (the “2022 Term Loan A Facility”), and (iii) a $1.1 billion seven-year Term Loan B facility (the “2022 Term Loan B Facility” and, together with the 2022 Revolver and 2022 Term Loan A Facility, the “New Senior Secured Credit Facilities”), pursuant to a new Term Loan and Revolving Credit Agreement. The New Senior Secured Credit Facilities are guaranteed, along with any hedging or cash management obligations entered into with a lender and a limited amount of hedging or cash management obligations entered into with entities that are not lenders, by us and certain of our direct and indirect wholly-owned subsidiaries organized in the United States, Ireland, Belgium and England and Wales (subject to certain exceptions) (the “Guarantor Subsidiaries”). The Guarantor Subsidiaries and Perrigo Investments, LLC provide full and unconditional guarantees, jointly and severally, on a senior unsecured basis, of the 5.300% Notes due 2043 issued by the Company, and the Guarantor Subsidiaries, Perrigo Investments, LLC and the Company provide full and unconditional guarantees, jointly and severally, on a senior unsecured basis, of the 3.900% Notes due 2024, the 4.375% Notes due 2026, the 4.400% Notes due 2030 and the 4.900% Notes due 2044 issued by Perrigo Finance Unlimited Company.
Total borrowings are summarized as follows (in millions):
October 1, 2022December 31, 2021
Term loan
2019 Term loan due August 15, 2022(1)
$— $600.0 
2022 Term loan A due April 1, 2027496.9 — 
2022 Term loan B due April 1, 20291,097.3 — 
Total term loans1,594.2 600.0 
Notes and Bonds
CouponDue
5.105%
July 28, 2023(1,2)
$— $153.5 
4.000%
November 15, 2023(1)
— 215.6 
3.900%December 15, 2024700.0 700.0 
4.375%March 15, 2026700.0 700.0 
4.400%
June 15, 2030(3)
750.0 750.0 
5.300%November 15, 204390.5 90.5 
4.900%December 15, 2044303.9 303.9 
Total notes and bonds2,544.4 2,913.5 
Other financing21.2 25.8 
Unamortized premium (discount), net(16.6)(4.8)
Deferred financing fees(32.2)(14.0)
Total borrowings outstanding4,111.0 3,520.5 
Current indebtedness(33.5)(603.8)
Total long-term debt less current portion$4,077.5 $2,916.7 

    (1) Redeemed in connection with the New Senior Secured Credit Facilities entered into during the second quarter of 2022.
    (2) Debt denominated in euros subject to fluctuations in the euro-to-U.S. dollar exchange rate.
    (3) The coupon rate noted above is that as of October 1, 2022, which increased from 3.900% to 4.400% on payments starting after June 15, 2022, following a credit rating downgrade in the first quarter of 2022.
    
Revolving Credit Agreements

On April 20, 2022 we terminated the revolving credit agreement maturing in March 2023 (the "2018 Revolver") and entered into the 2022 Revolver. There were no borrowings outstanding under the 2022 Revolver or 2018 Revolver as of October 1, 2022 or December 31, 2021, respectively.

Term Loan and Notes

On April 20, 2022, we repaid the prior $600.0 million term loan, maturing on August 15, 2022 (the "2019 Term Loan") with the proceeds of the New Senior Secured Credit Facilities. The remaining $500.0 million of proceeds from the New Senior Secured Credit Facilities available on the Closing Date (as defined in the Credit Agreement) were used to redeem the 4.00% Senior Notes due 2023 and the 5.1045% Guaranteed Senior Notes due 2023 on May 19, 2022. In relation to the New Senior Secured Credit Facilities, we deferred $31.3 million of financing fees, which will be amortized to interest expense over the term of the facilities. We recorded $8.9 million in Loss on extinguishment of debt on the Condensed Statement of Operations, consisting of the write-off of certain new and previously deferred financing fees and make whole payments due in connection with the redemption of the 4.00% Senior Notes due 2023. The proceeds from the New Senior Secured Credit Facilities were also used, in part, along with cash on hand, to fund the acquisition of HRA Pharma (Refer to Note 3).

We had $1.1 billion and $496.9 million outstanding under our 2022 Term Loan B Facility and 2022 Term Loan A Facility as of October 1, 2022, respectively. During the three months ended October 1, 2022, principal repayments of $2.8 million and $3.1 million were made on the Term Loan B Facility and 2022 Term Loan A Facility, respectively. There were no borrowings outstanding under our 2019 Term Loan as of October 1, 2022. We had $600.0 million outstanding under our 2019 Term Loan as of December 31, 2021.
We are in compliance with all the covenants under our debt agreements as of October 1, 2022.

Other Financing

We have overdraft facilities available that we use to support our cash management operations. We report any balances outstanding in the above table under "Other financing". There were no borrowings outstanding under the overdraft facilities as of October 1, 2022 or December 31, 2021.

We have financing leases that are reported in the above table under "Other financing" (refer to Note 10).