Quarterly report pursuant to Section 13 or 15(d)

Debt and Revolving Facility

v3.21.2
Debt and Revolving Facility
 6 Months Ended
Jun. 26, 2021
Debt Disclosure [Abstract]  
Debt and Revolving Facility Debt and Revolving Credit Facility
Debt
The Company’s total debt as of June 26, 2021 and December 26, 2020 consisted of the following:
June 26,
2021		 December 26,
2020
(In millions)
7.50% Senior Notes Due 2022 (7.50% Notes)
 $ 312  $ 312 
2.125% Convertible Senior Notes Due 2026 (2.125% Notes)
 1  26 
Total debt (principal amount) 313  338 
Unamortized debt discount and issuance costs —  (8)
Total long-term debt, net $ 313  $ 330 
2.125% Convertible Senior Notes Due 2026
In September 2016, the Company issued $805 million in aggregate principal amount of 2.125% Convertible Senior Notes due 2026. The 2.125% Notes are general unsecured senior obligations of the Company.
During the six months ended June 26, 2021, holders of the 2.125% Notes converted $25 million principal amount of notes, in exchange for which the Company issued approximately 3 million shares of the Company’s common stock at the conversion price of $8.00 per share. The Company recorded a loss of $6 million from these conversions in Other income (expense), net on its condensed consolidated statements of operations. As of June 26, 2021, the outstanding aggregate principal amount of the 2.125% Notes was $1 million.
7.50% Senior Notes Due 2022
On August 15, 2012, the Company issued $500 million of its 7.50% Senior Notes due August 15, 2022. As of June 26, 2021, the outstanding aggregate principal amount of the 7.50% Notes was $312 million.
Revolving Credit Facility
The Company is party to a $500 million unsecured revolving credit facility (the Revolving Credit Facility), including a $50 million swingline sub-facility and a $75 million sublimit for letters of credit pursuant to a credit agreement with a syndicate of banks. The Revolving Credit Facility expires in June 2024. Borrowings under the Revolving Credit Facility bear interest at either the LIBOR rate or the base rate at the Company’s option (in each case, as customarily defined) plus an applicable margin. As of June 26, 2021, there were no borrowings outstanding under the Revolving Credit Facility and the Company was in compliance with all required covenants. As of June 26, 2021, the Company had $13 million of letters of credit outstanding under the Revolving Credit Facility.