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Debt
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Debt DEBT
Debt is composed of the following obligations.
($ in millions)June 30, 2024December 31, 2023
Local overdraft facilities$23.3 13.4 
Other short-term borrowings102.9 134.5 
Short-term borrowings$126.2 147.9 
Credit facility, net of debt issuance costs of $12.9 and $14.4
1,262.1 610.6 
Long-term senior notes, 1.96%, face amount of €175.0, due June 2027, net of debt issuance costs of $0.4 and $0.4
187.2 193.3 
Long-term senior notes, 6.875%, face amount of $400.0, due December 2028, net of debt issuance costs of $6.4 and $7.1
393.6 392.9 
Long-term senior notes, 2.21%, face amount of €175.0, due June 2029, net of debt issuance costs of $0.5 and $0.6
187.1 193.1 
Total debt, net of debt issuance costs$2,156.2 1,537.8 
Credit Facilities
We have a $3.3 billion unsecured revolving credit facility (the "Facility") that matures on November 3, 2028. Pricing on the Facility ranges from Adjusted Term Secured Overnight Financing Rate ("SOFR") plus 0.875% to 1.35%, with pricing including facility fees, as of June 30, 2024 at Adjusted Term SOFR plus 0.98%. In addition to outstanding borrowings under the Facility presented in the above table, we had outstanding letters of credit under the Facility of $0.4 million as of both June 30, 2024 and December 31, 2023.
In addition, we have an uncommitted credit agreement (the "Uncommitted Facility"), which allows for discretionary short-term liquidity of up to $400.0 million. Interest and fees are set at the time of utilization and calculated on a 360-day basis. Between quarter-end dates, we intend to use the proceeds to reduce indebtedness under the Facility at a lower interest rate. As such, the Uncommitted Facility had no outstanding balance as of both June 30, 2024 and December 31, 2023.
The following table provides additional information on our Facility and Uncommitted Facility, collectively.
Three Months Ended June 30,Six Months Ended June 30,
($ in millions)2024202320242023
Average outstanding borrowings $1,705.8 2,315.8 $1,381.3 2,019.5 
Average effective interest rate6.2 %5.9 %6.2 %5.7 %
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 and Long-Term Debt
In addition to our credit facilities, we have the capacity to borrow up to an additional $53.8 million under local overdraft facilities. Amounts outstanding are presented in the debt table above.
As of June 30, 2024, our issuer and senior unsecured ratings are investment grade: Baa1 from Moody’s Investors Service, Inc. and BBB+ from Standard & Poor’s Ratings Services.
Commercial Paper Program
On June 27, 2024, we established a commercial paper program (the “Program”) in which we may issue up to $2.5 billion of short-term, unsecured and unsubordinated commercial paper notes at any time, under the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended. Amounts available under the Program may be borrowed, repaid and re-borrowed from time to time. Payment of the Program notes will be fully and unconditionally guaranteed on an unsecured and unsubordinated basis. We intend to use net proceeds of the Program for general corporate purposes, including the repayment of outstanding borrowings under the Facility.
Notes issued under the Program will be sold under customary market terms in the U.S. commercial paper market at par less a discount representing an interest factor or, if interest bearing, at par. The maturities of the Program notes may vary but may not exceed 397 days from the date of issuance. The Program notes and guarantee of payment thereof will rank pari passu with all other unsecured and unsubordinated indebtedness. As of the end of June 30, 2024, we have not issued any notes under the Program.
Covenants
Our Facility and senior notes are subject to customary financial and other covenants, including cash interest coverage ratios and leverage ratios, as well as event of default conditions. We remained in compliance with all covenants as of June 30, 2024.
Warehouse Facilities
June 30, 2024December 31, 2023
($ in millions)Outstanding BalanceMaximum CapacityOutstanding BalanceMaximum Capacity
Warehouse facilities:
BSBY(1) plus 1.30%, expires September 16, 2024
$174.8 700.0 159.0 700.0 
SOFR plus 1.30%, expires September 14, 2024
416.3 1,200.0 405.1 1,200.0 
SOFR plus 1.40%, expires July 26, 2024(2)
58.7 400.0 62.3 400.0 
Fannie Mae ASAP(3) program, SOFR plus 1.25%
6.0 n/a37.3 n/a
Gross warehouse facilities655.8 2,300.0 663.7 2,300.0 
Debt issuance costs(0.3)n/a(1.0)n/a
Total warehouse facilities$655.5 2,300.0 662.7 2,300.0 
(1) Bloomberg Short-Term Bank Yield Index rate ("BSBY")
(2) In July 2024, we extended the term of the Warehouse facility to October 24, 2024.
(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 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 facilities as of June 30, 2024.