Debt

3 Months Ended

Mar. 31, 2021

DEBT

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


($ in millions)	March 31, 2021		December 31, 2020
Short-term borrowings:
Local overdraft facilities	$	16.0	12.0
Other short-term borrowings	74.6		50.0
Total short-term borrowings	$	90.6	62.0
Credit facility, net of debt issuance costs of $7.7 and $8.7	342.3		(8.7)
Long-term senior notes, 4.4%, face amount of $275.0, due November 2022, net of debt issuance costs of $0.6 and $0.8	274.4		274.2
Long-term senior notes, 1.96%, face amount of €175.0, due June 2027, net of debt issuance costs of $0.8 and $0.8	204.8		213.9
Long-term senior notes, 2.21%, face amount of €175.0, due June 2029, net of debt issuance costs of $0.9 and $0.9	204.8		213.9
Total debt	$	1,116.9	755.3

Credit Facility

Our $2.75 billion unsecured revolving credit facility (the "Facility") matures on May 17, 2023. Pricing on the Facility ranges from three-month LIBOR plus 0.875% to 1.35%, with pricing as of March 31, 2021, at LIBOR plus 0.95%. In addition to outstanding borrowings under the Facility presented in the above table, we had outstanding letters of credit under the Facility of $0.7 million as of both March 31, 2021 and December 31, 2020.

On April 14, 2021, we renewed the Facility, which included the extension of the maturity date to April 2026. Refer to Note 13, Subsequent Events for further detail.

The following tables provides additional information on our Facility.


	Three Months Ended March 31,
($ in millions)		2021			2020
Average outstanding borrowings under the Facility		$	184.4		935.2
Effective interest rate on the Facility		1.0		%	2.4	%

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, share repurchases and capital expenditures.

Short-Term Borrowings and Long-Term Debt

In addition to our Facility, we have the capacity to borrow up to an additional $63.4 million under local overdraft facilities. Amounts outstanding are presented in the debt table above.

As of March 31, 2021, our issuer and senior unsecured ratings are investment grade: Baa1 from Moody’s Investors Service, Inc. and BBB+ from Standard & Poor’s Ratings Services.

Covenants

Our Facility and senior notes are subject to customary financial and other covenants, including cash interest coverage ratios and leverage ratios, as well as event of default conditions. We remained in compliance with all covenants as of March 31, 2021.

Warehouse Facilities


	March 31, 2021			December 31, 2020
($ in millions)	Outstanding Balance		Maximum Capacity	Outstanding Balance	Maximum Capacity
Warehouse Facilities:
LIBOR plus 1.40%, expires September 20, 2021	$	171.5	400.0	144.4	400.0
LIBOR plus 1.40%, expires September 18, 2021(1)	516.6		1,200.0	768.9	1,600.0
LIBOR plus 1.40%, expires August 27, 2021(2)	87.3		200.0	195.9	900.0
Fannie Mae ASAP(3) program, LIBOR plus 1.15%	58.9		n/a	128.8	n/a
LIBOR plus 1.50%	—		300.0	261.6	300.0

Gross warehouse facilities	834.3		2,100.0	1,499.6	3,200.0
Debt issuance costs	(0.8)		n/a	(1.2)	n/a
Total warehouse facilities	$	833.5	2,100.0	1,498.4	3,200.0

(1) The temporary maximum capacity increase to $1,600.0 million expired on January 31, 2021; thereafter, the maximum capacity reverted to its original contractual amount.

(2) The temporary maximum capacity increase to $900.0 million expired on January 6, 2021; thereafter, the maximum capacity reverted to its original contractual amount.

(3) As Soon As Pooled ("ASAP") funding program.

We have lines of credit established for the sole purpose of funding our Warehouse receivables. These lines of credit exist with 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 (i) minimum net worth, (ii) minimum servicing-related loans and (iii) minimum adjusted leverage ratios. We remained in compliance with all covenants under our Warehouse facilities as of March 31, 2021.