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Debt
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Debt
10.     DEBT
Debt is composed of the following obligations.
December 31,
(in millions)20242023
Local overdraft facilities$18.9 13.4 
Other short-term borrowings134.9 134.5 
Commercial paper, net of debt issuance costs of $0.7 and $—
199.3— 
Total short-term debt, net of debt issuance costs$353.1 147.9 
Credit facility, net of debt issuance costs of $11.4 and $14.4
88.6 610.6 
Long-term senior notes, 1.96%, face amount of €175.0, due June 2027, net of debt issuance costs of $0.3 and $0.4
181.2 193.3 
Long-term senior notes, 6.875%, face amount of $400.0, due December 2028, net of debt issuance costs of $5.6 and $7.1
394.4 392.9 
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
181.1 193.1 
Total debt, net of debt issuance costs$1,198.4 1,537.8 
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.
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.
Credit Facilities
We have a $3.3 billion unsecured revolving credit facility (the "Facility") that matures on November 3, 2028. Pricing on the unsecured revolving credit facility (the "Facility") ranges from Adjusted Term ("SOFR") plus 0.875% to 1.35%, with pricing including facility fees, as of December 31, 2024 at Adjusted Term SOFR plus 0.98%.
In addition, we have an uncommitted credit agreement (the "Uncommitted Facility"), which allows for discretionary short-term liquidity of up to $400.0 million. Interest and fees are set at the time of utilization and calculated on a 360-day basis. Between quarter-end dates, we intend to use the proceeds to reduce indebtedness under the Facility at a lower interest rate. As such, the Uncommitted Facility had no outstanding balance as of December 31, 2024 and 2023.
The following table provides additional information on our Facility, Uncommitted Facility, and the Program collectively.
Year Ended December 31,
($ in millions)20242023
Average outstanding borrowings$1,381.4 1,875.9 
Average effective interest rate5.9 %5.9 %
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 had the capacity to borrow up to an additional $42.5 million under local overdraft facilities as of December 31, 2024. Amounts outstanding are presented in the debt table above.
As of December 31, 2024, our issuer and senior unsecured ratings were investment grade: Baa1 from Moody’s Investors Service, Inc. and BBB+ from Standard & Poor’s Ratings Services.
Covenants
Our Facility and senior notes are subject to customary financial and other covenants, including cash interest coverage ratios and leverage ratios, as well as event of default conditions. We remained in compliance with all covenants as of December 31, 2024.
Warehouse Facilities
December 31, 2024December 31, 2023
($ in millions)Outstanding BalanceMaximum CapacityOutstanding BalanceMaximum Capacity
Warehouse facilities:
SOFR plus 1.40%, expires September 15, 2025(1)
$341.3 700.0 159.0 700.0 
SOFR plus 1.30%, expires September 13, 2025(1)
416.5 2,100.0 405.1 1,200.0 
SOFR plus 1.40%, expires October 23, 2025(1)
8.8 400.0 62.3 400.0 
Fannie Mae ASAP(2) program, SOFR plus 1.25%
75.3 n/a37.3 n/a
Gross warehouse facilities841.9 3,200.0 663.7 2,300.0 
Debt issuance costs(0.9)n/a(1.0)n/a
Total warehouse facilities$841.0 3,200.0 662.7 2,300.0 
(1) Warehouse facility has been amended since December 31, 2023. Refer to our previously filed Form 10-K for specific terms of the agreement for the comparative period.
(2) 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 December 31, 2024.
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, ultimate, sale back to Fannie Mae. The difference between the price paid upon the original sale to Fannie Mae and the ultimate sale reflects borrowing costs.