Debt Instrument, Weighted Average Maturity Period

[Table of Contents](#ibf86fcdc129f446cb1f3b45cc16d49fe_7)ALBEMARLE CORPORATION AND SUBSIDIARIESNotes to the Condensed Consolidated Financial Statements(Unaudited)does not guarantee debt for, or have other financial support obligations to, these entities, and its maximum exposure to loss in connection with its continuing involvement with these entities is limited to the carrying value of the investments.As part of the proceeds from the sale of the FCS business on June 1, 2021, Grace issued Albemarle preferred equity of a Grace subsidiary having an aggregate stated value of $270 million. The preferred equity can be redeemed at Grace’s option under certain conditions and will accrue PIK dividends at an annual rate of 12% beginning two years after issuance. This preferred equity had a fair value of $247.1 million and $246.5 million at March 31, 2022 and December 31, 2021, respectively, which is reported in Investments in the consolidated balance sheets.  
NOTE 9—Long-Term Debt:Long-term debt at March 31, 2022 and December 31, 2021 consisted of the following (in thousands):

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | March 31, |  | December 31, |
|  | 2022 |  | 2021 |
| 1.125% notes due 2025 | $ | 414,088  |  |  | $ | 426,571  |  |
| 1.625% notes due 2028 | 549,000  |  |  | 565,550  |  |
|  |  |  |  |
| 3.45% Senior notes due 2029 | 171,612  |  |  | 171,612  |  |
| 4.15% Senior notes due 2024 | 425,000  |  |  | 425,000  |  |
| 5.45% Senior notes due 2044 | 350,000  |  |  | 350,000  |  |
|  |  |  |  |
| Credit facilities | 280,000  |  |  | —  |  |
| Commercial paper notes | 222,400  |  |  | 388,500  |  |
|  |  |  |  |
| Variable-rate foreign bank loans | 4,842  |  |  | 5,226  |  |
|  |  |  |  |
| Finance lease obligations | 74,504  |  |  | 75,431  |  |
| Other | 11,001  |  |  | —  |  |
| Unamortized discount and debt issuance costs | (12,956) |  |  | (13,651) |  |
| Total long-term debt | 2,489,491  |  |  | 2,394,239  |  |
| Less amounts due within one year | 503,795  |  |  | 389,920  |  |
| Long-term debt, less current portion | $ | 1,985,696  |  |  | $ | 2,004,319  |  |

Current portion of long-term debt at March 31, 2022 includes commercial paper notes with a weighted-average interest rate of approximately 1.12% and a weighted-average maturity of 17 days.In the first quarter of 2021, the Company made certain debt principal payments using proceeds from the February 2021 underwritten public offering of common stock. As a result, included in Interest and financing expenses for the three-month period ended March 31, 2021 is a loss on early extinguishment of debt of $27.8 million, representing the tender premiums, fees, unamortized discounts and unamortized deferred financing costs from the redemption of this debt.Prior to repayment in the first quarter of 2021, the carrying value of the 1.875% Euro-denominated senior notes was designated as an effective hedge of the net investment in certain foreign subsidiaries where the Euro serves as the functional currency, and gains or losses on the revaluation of these senior notes to our reporting currency were recorded in accumulated other comprehensive loss. Upon repayment of these notes, this net investment hedge was discontinued. The balance of foreign exchange revaluation gains and losses associated with this discontinued net investment hedge will remain within accumulated other comprehensive loss until the hedged net investment is sold or liquidated. Prior to the net investment hedge being discontinued, we recorded a gain of $5.1 million (net of income taxes) during the three-month period ended March 31, 2021 in accumulated other comprehensive loss.   
  
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