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Debt
 9 Months Ended
Sep. 30, 2025
Debt  
Debt

Note 7. Debt

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Debt consisted of the following:

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September 30,

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December 31,

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2025

   

2024

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(in millions)

Unsecured revolving credit facility maturing September 10, 2029

$

238.0

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$

—

Unsecured term loan due August 14, 2028

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400.0

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—

Senior unsecured notes, interest payable semi-annually at 1.30%, effective rate of 1.53%, repaid August 15, 2025

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—

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400.0

Senior unsecured notes, interest payable semi-annually at 2.15%, effective rate of 2.27%, maturing August 15, 2030

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500.0

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500.0

Senior unsecured notes, interest payable semi-annually at 6.85%, effective rate of 6.91%, maturing November 15, 2036

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250.0

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250.0

Other notes

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1.1

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1.1

Total

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1,389.1

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1,151.1

Less: unamortized discount and debt issuance costs

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(7.3)

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(8.6)

Less: amounts due within one year

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(0.3)

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(399.7)

Total long-term debt

$

1,381.5

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$

742.8

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The weighted average effective interest rates on the Company’s outstanding borrowings as of September 30, 2025 and December 31, 2024 were 4.38% and 3.02%, respectively.

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Unsecured Revolving Credit Facility

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On September 10, 2024, we entered into a $1.5 billion unsecured five-year revolving credit facility (“Credit Agreement”) that amended and restated our then-existing $1.5 billion unsecured revolving credit facility. As of September 30, 2025, borrowings under the Credit Agreement were available at variable rates based on the Secured Overnight Financing Rate (“SOFR”) plus 1.00% or the bank prime rate and we currently pay a commitment fee at an annual rate of 0.10% on the unused portion of the revolving credit facility. The applicable margins over SOFR and prime rate borrowings, along with commitment fees, are subject to adjustment every quarter based on our total net leverage ratio, as defined in the Credit Agreement. All borrowings under the Credit Agreement may be prepaid without penalty.

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The weighted average interest rate on borrowings outstanding on the revolving credit facility was 5.27% as of September 30, 2025. We had no outstanding borrowings under the revolving credit facility as of December 31, 2024. We had $1.1 million of letters of credit outstanding under the revolving credit facility as of September 30, 2025 and December 31, 2024.

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Unsecured Term Loan

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On August 14, 2025, we entered into a $400.0 million unsecured Term Loan Agreement (“Term Loan”) maturing August 14, 2028. The proceeds were used to repay our $400.0 million senior unsecured notes maturing August 15, 2025. As of September 30, 2025, the borrowing under the Term Loan bore interest at SOFR plus 0.75%. The applicable interest rate margin over SOFR is subject to adjustment every quarter based on our total net leverage ratio that is defined similarly as in our Credit Agreement. The outstanding balance under the Term Loan can be prepaid without penalty.

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The interest rate on the outstanding balance of the term loan was 4.90% as of September 30, 2025.

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Senior Unsecured Notes

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On August 15, 2025, we repaid, at maturity, the $400.0 million aggregate outstanding principal amount of our 1.30% unsecured senior notes with the proceeds from the Term Loan.

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Under the indentures for each series of our senior notes (the “indentures”), the notes are senior unsecured obligations and rank equally in right of payment with all of our existing and future unsecured and unsubordinated obligations. If we experience a change in control accompanied by a downgrade in our credit rating, we will be required to make an offer to repurchase each series of the notes at a price equal to 101% of their principal amount plus accrued and unpaid interest.

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Letter of Credit/Letters of Guarantee Facility

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We have a $50.0 million standby letters of credit/letters of guarantee agreement with one of the lenders under our Credit Agreement. We had $35.1 million and $29.2 million outstanding under this facility as of September 30, 2025 and December 31, 2024, respectively.

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Covenants

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The Credit Agreement, Term Loan and indentures governing our debt securities include customary representations, warranties, covenants and events of default provisions. The covenants under the Credit Agreement and Term Loan include, among other things, a financial maintenance covenant that requires us to comply with a maximum total net leverage ratio. We were in compliance with the financial maintenance covenant under our Credit Agreement and Term Loan as of September 30, 2025.