
10.	DEBT

Short-term borrowings and long-term debt obligations are composed of the following.



	December 31,
($ in millions)	2016		2015
Short-term borrowings:
Local overdraft facilities	$	31.6	24.6
Other short-term borrowings	57.9		24.6
Total short-term borrowings	89.5		49.2
Credit facility, net of debt issuance costs of $19.6 and $15.4	905.4		239.6
Long-term senior notes, 4.4%, face amount of $275.0, due November 2022, net of debt issuance costs of $2.3 and $2.7	272.7		272.3
Total debt	$	1,267.6	561.1

Credit Facility

On June 21, 2016, we amended and expanded our credit facility (the "Facility"), which resulted in: (1) an increase in our borrowing capacity from $2.0 billion to $2.75 billion, (2) an extension of the maturity date from February 25, 2020 to June 21, 2021, (3) modifications to certain add-backs to adjusted EBITDA (as defined in the Facility) for the calculation of the leverage ratio to provide additional operating flexibility, (4) a range of pricing from LIBOR plus 0.95% to 2.05%, with pricing as of December 31, 2016 at LIBOR plus 1.05%, (5) an increase in the permitted amount for certain new indebtedness, and (6) the removal of limitations on the amount of Investments in real estate ventures. Consistent with our prior agreement, our leverage ratio cannot exceed 3.50 to 1, except immediately following a material acquisition, in which case, the leverage ratio maximum is 4.00 to 1 for up to four consecutive quarters. Other key terms and conditions of the Facility were unchanged as part of the current amendment and expansion.

The average outstanding borrowings under the Facility were $981.6 million and $335.1 million for the years ended December 31, 2016 and 2015, respectively. In addition to outstanding borrowings under the Facility presented in the above table, we had outstanding letters of credit under the Facility of $18.2 million as of December 31, 2016 and 2015. The effective interest rates on our Facility were 1.5% and 1.1% during the years ended December 31, 2016 and 2015, respectively.

We remained in compliance with all covenants under our Facility as of December 31, 2016, including a minimum cash interest coverage ratio of 3.00 to 1 and the maximum leverage ratio discussed above.

We will continue to use the Facility for, but not limited to, business acquisitions, working capital needs (including payment of accrued incentive compensation), co-investment activities, dividend payments, share repurchases and capital expenditures.

Short-Term Borrowings and Long-Term Notes

In addition to our Facility, we have the capacity to borrow up to an additional $66.3 million under local overdraft facilities. Amounts outstanding are presented in the debt table above.

As of December 31, 2016, our issuer and senior unsecured ratings are investment grade: BBB+ (stable outlook) from Standard & Poor’s Ratings Services and Baa2 (positive outlook) from Moody’s Investors Service, Inc.

Warehouse Facilities



	December 31, 2016			December 31, 2015
($ in millions)	Outstanding Balance		Maximum Capacity	Outstanding Balance	Maximum Capacity
Warehouse Facilities:
LIBOR plus 1.4%, expires September 25, 2017	135.2		275.0	—	—
LIBOR plus 1.4%, expires September 22, 2017¹	314.7		650.0	—	—
LIBOR plus 1.6%, expires March 31, 2017	15.0		100.0	18.4	100.0
LIBOR plus 1.5%, expired October 17, 2016	—		—	63.4	175.0
LIBOR plus 1.5%, expired September 22, 2016	—		—	38.0	175.0
Variable rate, non-committed	—		—	128.7	200.0
Fannie Mae ASAP program, LIBOR plus 1.30% to 1.45%	116.1		n/a	14.6	n/a
Gross warehouse facilities	581.0		1,025.0	263.1	650.0
Debt issuance costs	(0.9	)	n/a	—	n/a
Total warehouse facilities	580.1		1,025.0	263.1	650.0

¹ JLL entered into an additional temporary agreement from December 1, 2016 through February 28, 2017 that increased the commitment balance to $650.0 million. Once this temporary agreement expires, the commitment balance will revert back to $250.0 million.

We have lines of credit established for the sole purpose of funding our Warehouse receivables, which we sell to GSEs. These lines of credit exist with multiple financial institutions and are secured by the related warehouse receivables. Pursuant to these warehouse facilities, we are required to comply with certain financial covenants regarding (1) minimum net worth, (2) minimum servicing-related loans, and (3) minimum adjusted leverage ratios. We remained in compliance with all covenants under our Warehouse facilities as of December 31, 2016.

As a supplement to our lines of credit, we have an uncommitted facility with Fannie Mae under its As Soon As Pooled ("ASAP") funding program. After origination, we sell certain warehouse receivables to Fannie Mae; the proceeds are used to repay the original lines of credit used to fund the loan. The ASAP funding program requires us to repurchase these loans, generally within 45 days, followed by an immediate sale back to Fannie Mae. The difference between the price paid upon the original sale to Fannie Mae and the ultimate sale reflects a discount representative of borrowing costs.