jvid视频

(6)听听听Long-Term Debt

Debt is summarized as follows:

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QVC Senior Secured Notes

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During the second quarter of 2023, QVC purchased $177听million of the outstanding 4.85% Senior Secured Notes due 2024 (the "2024 Notes") and $15听million of the outstanding 4.45% Senior Secured Notes due 2025 (the "2025 Notes"). As a result of the repurchases, the Company recorded a gain on extinguishment of debt of $10听million for the three and six months ended June 30, 2023, which is included in other, net in the condensed consolidated statements of operations. On February 27, 2024, QVC delivered a notice of redemption to the trustee and holders of the 2024 Notes. 听Pursuant to the notice of redemption, QVC redeemed the remaining outstanding 2024 Notes in full on March 28, 2024. As of June 30, 2024, the remaining outstanding 2025 Notes are classified within the current portion of long-term debt as they mature in less than one year.

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The senior secured notes permit QVC to make unlimited dividends or other restricted payments so long as QVC is not in default under the indentures governing the senior secured notes and QVC鈥檚 consolidated leverage ratio is not greater than听3.5听to 1.0 (the 鈥渟enior secured notes leverage basket鈥�).听As of June 30, 2024, QVC鈥檚 consolidated leverage ratio (as calculated under QVC鈥檚 senior secured notes) was greater than听3.5听to 1.0 and as a result QVC is restricted in its ability to make dividends or other restricted payments under the senior secured notes. 听Although QVC will not be able to make unlimited dividends or other restricted payments under the senior secured notes leverage basket, QVC will continue to be permitted to make unlimited dividends to parent entities of QVC to service the principal and interest when due in respect of indebtedness of such parent entities (so long as there is no default under the indentures governing QVC鈥檚 senior secured notes) and permitted to make certain restricted payments to jvid视频 under an intercompany tax sharing agreement in respect of certain tax obligations of QVC and its subsidiaries.

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QVC Senior Secured Credit Facility

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On October 27, 2021, QVC amended and restated its latest credit agreement (as amended and restated, the 鈥淔ifth Amended and Restated Credit Agreement鈥�) and refinanced QVC鈥檚 existing bank credit facility by entering into the Fifth Amended and Restated Credit Agreement with Zulily, CBI, and QVC Global Corporate Holdings, LLC (鈥淨VC Global鈥�), each a direct or indirect (or former, in the case of Zulily) wholly owned subsidiary of jvid视频, as borrowers (QVC, Zulily, CBI and QVC Global, collectively, the 鈥淏orrowers鈥�), JPMorgan Chase Bank, N.A., as administrative agent, and the other parties named therein. In connection with the Zulily divestiture (see note 1), Zulily is no longer a co-borrower in the Credit Facility, and Zulily repaid its outstanding borrowings under the Fifth Amended and Restated Credit Agreement using cash contributed from jvid视频, which was approximately $80 million.

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The Fifth Amended and Restated Credit Agreement is a multi-currency facility providing for a $3.25听billion revolving credit facility (the 鈥淐redit Facility鈥�), with a $450听million sub-limit for letters of credit and an alternative currency revolving sub-limit equal to听50% of the revolving commitments thereunder. The Credit Facility may be borrowed by any Borrower, with each Borrower jointly and severally liable for the outstanding borrowings. Borrowings under the Fifth Amended and Restated Credit Agreement bear interest at either the alternate base rate (such rate, the 鈥淎BR Rate鈥�) or a London Inter-bank Offered Rate (鈥淟IBOR鈥�)-based rate (or the applicable non-U.S. Dollar equivalent rate) (such rate, the 鈥淭erm Benchmark/RFR Rate鈥�) at the applicable Borrower鈥檚 election in each case plus a margin. Borrowings that are ABR Rate loans will bear interest at a per annum rate equal to the base rate plus a margin that varies between听0.25% and听0.625% depending on the Borrowers鈥� combined ratio of consolidated total debt to consolidated EBITDA (the 鈥渃onsolidated leverage ratio鈥�). Borrowings that are Term Benchmark/RFR Rate loans will bear interest at a per annum rate equal to the applicable rate plus a margin that varies between听1.25% and听1.625% depending on the Borrowers鈥� consolidated leverage ratio. Each loan may be prepaid at any time and from time to time without penalty other than customary breakage costs. No mandatory prepayments will be required other than when borrowings and letter of credit usage exceed availability; provided that, if CBI, QVC Global or any other borrower under the Credit Facility (other than QVC) is removed, at the election of QVC, as a borrower thereunder, all of its loans must be repaid and its letters of credit are terminated or cash collateralized. Any amounts prepaid on the Credit Facility may be reborrowed.

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On June 20, 2023, QVC, QVC Global and CBI, as borrowers, 听JPMorgan Chase Bank, N.A., as administrative agent, and the other parties thereto entered into an agreement whereby, in accordance with the Fifth Amended and Restated Credit Agreement, LIBOR-based rate loans denominated in U.S. dollars made on or after June 30, 2023 would be replaced with

SOFR-based rate loans. 听Borrowings that are Secured Overnight Financing Rate (鈥淪OFR鈥�)-based loans will bear interest at a per annum rate equal to the applicable SOFR rate, plus a credit spread adjustment, plus a margin that varies between 1.25% and 1.625% depending on the Borrowers鈥� consolidated leverage ratio.

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The loans under the Credit Facility are scheduled to mature on October 27, 2026. Payment of the loans may be accelerated following certain customary events of default.

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The payment and performance of the Borrowers鈥� obligations under the Fifth Amended and Restated Credit Agreement are guaranteed by each of QVC鈥檚, QVC Global鈥檚, and CBI鈥檚 Material Domestic Subsidiaries (as defined in the Fifth Amended and Restated Credit Agreement), if any, and certain other subsidiaries of any Borrower that such Borrower has chosen to provide guarantees. Further, the borrowings under the Fifth Amended and Restated Credit Agreement are secured, pari passu with QVC鈥檚 existing notes, by a pledge of all of QVC鈥檚 equity interests. The borrowings under the Fifth Amended and Restated Credit Agreement are also secured by a pledge of all of CBI鈥檚 equity interests.

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The Fifth Amended and Restated Credit Agreement contains certain affirmative and negative covenants, including certain restrictions on the Borrowers and each of their respective restricted subsidiaries (subject to certain exceptions) with respect to, among other things: incurring additional indebtedness; creating liens on property or assets; making certain loans or investments; selling or disposing of assets; paying certain dividends and other restricted payments; dissolving, consolidating or merging; entering into certain transactions with affiliates; entering into sale or leaseback transactions; restricting subsidiary distributions; and limiting the Borrowers鈥� consolidated leverage ratio.

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Borrowings under the Fifth Amended and Restated Credit Agreement may be used to repay outstanding indebtedness, pay certain fees and expenses, finance working capital needs and general purposes of the Borrowers and their respective subsidiaries and make certain restricted payments and loans to the Borrowers鈥� respective parents and affiliates.

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Availability under the Fifth Amended and Restated Credit Agreement at June听30, 2024 was $1,860 million. 听The interest rate on the Credit Facility was听6.9% and 6.6% at June听30, 2024 and 2023, respectively.

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Exchangeable Senior Debentures

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The Company has elected to account for its exchangeable senior debentures using the fair value option. 听Accordingly, changes in the fair value of these instruments are recognized as unrealized gains (losses) in the statements of operations. See note 4 for information related to unrealized gains (losses) on debt measured at fair value. 听As of June听30, 2024 the Company鈥檚 3.75% and 4.0% Exchangeable Debentures have been classified as current because the Company does not own shares to exchange the debentures. The Company reviews the terms of the debentures on a quarterly basis to determine whether a triggering event has occurred to require current classification of the exchangeables upon a call event. 听

Fair Value of Debt

jvid视频 estimates the fair value of its debt based on the quoted market prices for the same or similar issues or on the current rate offered to jvid视频 for debt of the same remaining maturities (Level 2). The QVC 6.375% Senior Secured Notes due 2067 (鈥�2067 Notes鈥�) and the QVC 6.25% Senior Secured Notes Due 2068 (鈥�2068 Notes鈥�) are traded on the New York Stock Exchange, and the Company considers them to be actively traded. As such, the 2067 Notes and 2068 Notes are valued based on their trading price (Level 1). The fair value of jvid视频's publicly traded debt securities that are not reported at fair value in the accompanying condensed consolidated balance sheet at June听30, 2024 are as follows (amounts in听millions):

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Due to the variable rate nature, jvid视频 believes that the carrying amount of its other debt, not discussed above, approximated fair value at June听30, 2024.