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LONG-TERM DEBT | 12 Months Ended
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Dec. 31, 2020
Debt Disclosure [Abstract] |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consisted of the following:
|  |  | December 31,
| Effective |  | 2020 |  | 2019
In millions | Interest Rate |  | Book Value |  | Fair Value 1 |  | Book Value |  | Fair Value 1
Senior Credit and 364 Day Facility: |  |  |  |  |  |  |  |  |
U.S. dollar-denominated Term Loans, net of unamortized debt issuance costs of $0.9 and $1.1 | 2.2 | % |  | 645.1 |  |  | 645.1 |  |  | 684.7 |  |  | 684.7 |
Multi-Currency Revolving loan facility net of unamortized debt issuance costs of $0.8 and $0.9 | — | % |  | — |  |  | — |  |  | 231.5 |  |  | 231.5 |
Senior Notes: |  |  |  |  |  |  |  |  |
Floating Senior Notes, due 2021, net of unamortized debt issuance costs of $0.0 and $2.0 | — | % |  | — |  |  | — |  |  | 498.0 |  |  | 500.0 |
4.375% Senior Notes, due 2023, net of unamortized discount and debt issuance costs of $0.7 and $0.9 | 4.5 | % |  | 249.3 |  |  | 267.0 |  |  | 249.1 |  |  | 263.9 |
4.15% Senior Notes, due 2024, net of unamortized debt issuance costs of $4.3 and $5.7 | 4.6 | % |  | 745.7 |  |  | 817.3 |  |  | 744.3 |  |  | 805.5 |
3.20% Senior Notes, due 2025, net of unamortized debt issuance costs of $4.4 and $0.0 | 3.4 | % |  | 495.6 |  |  | 533.4 |  |  | — |  |  | — |
3.45% Senior Notes, due 2026, net of unamortized debt issuance costs of $1.3 and $1.5 | 3.5 | % |  | 748.7 |  |  | 819.5 |  |  | 748.5 |  |  | 759.1 |
4.70% Senior Notes, due 2028, net of unamortized discount and debt issuance costs of $8.2 and $9.3 | 5.0 | % |  | 1,241.8 |  |  | 1,472.2 |  |  | 1,240.8 |  |  | 1,378.3 |
Other Borrowings |  |  | 113.2 |  |  | 113.1 |  |  | 32.4 |  |  | 32.4 |
Total |  |  | 4,239.4 |  |  | 4,667.6 |  |  | 4,429.3 |  |  | 4,655.4 |
Less - current portion |  |  | 447.2 |  |  | 447.2 |  |  | 95.7 |  |  | 95.7 |
Long-term portion |  |  | 3,792.2 |  |  | 4,220.4 |  |  | 4,333.6 |  |  | 4,559.7 |
1 See Note 18 for information on the fair value measurement of the Company's long-term debt.
As of December 31, 2020, the annual repayment requirements for debt obligations are as follows:
In millions |
2021 | $ | 447.2 |
2022 | 311.1 |
2023 | 249.3 |
2024 | 745.7 |
2025 | 495.6 |
Thereafter | 1,990.5 |
Total | $ | 4,239.4 |
For those debt securities that have a premium or discount at the time of issuance, the Company amortizes the amount through interest expense based on the maturity date or the first date the holders may require the Company to repurchase the debt securities, if applicable. A premium would result in a decrease in interest expense, and a discount would result in an increase in interest expense in future periods. Additionally, the Company has debt issuance costs related to certain financing transactions which are also amortized through interest expense. As of December 31, 2020 and 2019, the Company had total unamortized debt issuance costs of $20.5 million and $21.3 million, respectively. At December 31, 2020, the weighted average interest rate on the Company's variable debt was 2.3% Credit Facilities Senior Credit Facility On June 8, 2018, the Company entered into a credit agreement ("Senior Credit Facility"), which replaced the Company's then-existing credit agreement. The Senior Credit Facility is with a syndicate of lenders and provides for borrowings consisting of (i) term loans denominated in euros and U.S. dollars ("Term Loans"); and (ii) a multi-currency revolving loan facility, providing for an equivalent in U.S. dollars of up to $1,200.0 million in multi-currency revolving loans (inclusive of swingline loans of up to $75.0 million and letters of credit of up to $450.0 million (the "Revolving Credit Facility")). The Revolving Credit Facility will mature on June 8, 2023. Under the Senior Credit Facility, we can elect to receive advances bearing interest based on either the ABR rate or the LIBOR rate (each as defined in the Senior Credit Facility) plus applicable margin that is determined based on our credit ratings or the Company's Leverage. The agreement contains affirmative, negative and financial covenants, and events of default customary for facilities of this type. The obligations under the Senior Credit Facility are guaranteed by Wabtec and certain of Wabtec's U.S. subsidiaries, as guarantors. The company has agreed that, so long as any lender has any commitment under the Senior Credit Facility, any letter of credit is outstanding under the Senior Credit Facility, or any loan or other obligation is outstanding under the Senior Credit Facility, it will maintain the following as of the end of each fiscal quarter or the period of four quarters the ended:
Interest Coverage Ratio 1 |  | 3.0x
Leverage Ratio 2 |  | 3.25x
1. The interest coverage ratio is defined as EBITDA, as defined in the Credit Agreement and Term Loan Agreement, to net interest expense for the four quarters then ended. 2. The leverage ratio is defined as net debt as of the last day of such fiscal quarter to EBITDA, as defined in the Amendment Credit Agreement and Term Loan Agreement, for the four quarters then ended. The company was in compliance with all covenants in the Senior Credit Facility as of December 31, 2020. 364-Day Facility On April 10, 2020 the Company entered into a new $600 million 364 day credit facility ("364 Day Facility") maturing April 2021 with a group of banks which includes a $144.0 million revolving credit facility ("364 Day Revolver") and a $456.0 million term loan ("364 Term Loan"). The agreement calls for interest at either a LIBOR-based rate, or a rate based on the prime lending rate of the agent bank, at the Company's option. The agreement contains affirmative, negative and financial covenants, and events of default customary for facilities of this type and substantially similar to our existing Senior Credit Facility. The obligations under the 364 Day Facility are guaranteed by certain of the Company's U.S. subsidiaries, as guarantors. On June 12, 2020 the Company amended the 364 Day Facility maturity to July 9, 2021. The Company was in compliance with all covenants in the 364 Senior Credit Facility as of December 31, 2020. The following table presents availability under the Revolving Facilities:
(in millions) |  | Revolving Credit Facility |  | 364 Day Revolver
Maximum Availability |  | $ | 1,200.0 |  |  | $ | 144.0 |
Letters of Credit Under Credit Agreement |  | $ | 19.1 |  |  | — |
Current Availability |  | $ | 1,180.9 |  |  | $ | 144.0 |
Senior Notes The "Senior Notes" comprises our 4.375% Senior Notes due 2023, 4.15% Senior Notes due 2024, 3.20% Senior Notes due 2025, 3.45% Senior Notes due 2026 and 4.70% Senior Notes due 2028. Interest on the fixed-rate Senior Notes is payable semi-annually. The Company may redeem each series of the notes at any time in whole or from time to time in part in accordance with the provisions of the indenture, under which such series of notes was issued. Each of the Senior Notes may be redeemed at a redemption price of 100% of the principal amount plus a specified make-whole premium and accrued interest. The Senior Notes are senior unsecured obligations of the Company and rank pari passu with all existing and future senior debt and senior to all existing and future subordinated indebtedness of the Company. On June 29, 2020 the Company issued $500.0 million of 3.20% Senior Notes due in 2025 (the "2025 Notes"). The 2025 Notes were issued at 99.892% of face value. Interest on the 2025 Notes accrues at a rate of 3.20% per annum and is payable semi-annually on June 15 and December 15 of each year beginning December 15, 2020. The proceeds were used to redeem the Floating Rate Senior Notes due 2021. The Company incurred $1.5 million of deferred financing costs related to the issuance of the 2025 Notes. The indentures under which the Senior Notes were issued contain covenants and restrictions which limit, subject to certain exceptions, certain sale and leaseback transactions with respect to principal properties, the incurrence of secured debt without equally and ratably securing the Senior Notes, and certain merger and consolidation transactions. The covenants do not require the Company to maintain any financial ratios or specified levels of net worth or liquidity. The Company is in compliance with the restrictions and covenants in the indentures under which the Senior Notes were issued and expects that these restrictions and covenants will not be any type of limiting factor in executing our operating activities. Cash Pooling Wabtec aggregates the Company's domestic cash position on a daily basis. Outside the United States, the Company uses cash pooling arrangements with banks to help manage our liquidity requirements. In these pooling arrangements, Wabtec subsidiary “Participants” agree with a single bank that the cash balances of any of the pool Participants with the bank will be subject to a full right of set-off against amounts other Participants owe the bank, and the bank provides for overdrafts as long as the net balance for all Participants does not exceed an agreed-upon level. Typically, each Participant pays interest on outstanding overdrafts and receives interest on cash balances. The Company's Consolidated Balance Sheets reflect cash, net of bank overdrafts, under all pooling arrangements. Letters of Credit In the ordinary course of its business, the Company issues letters of credit related to commercial products. The outstanding amount, including the letters of credit issues under the credit facility, were $736.6 million and $714.0 million at December 31, 2020 and 2019, respectively.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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