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DEBT

12 Months Ended

Dec. 31, 2020

DEBT

NOTE 9 – DEBT

At December 31, 2020 and 2019, debt consisted of the following:


		December 31,
		2020			2019
Long-term debt
Senior Unsecured Notes due through 2045, interest at 2.8% to 4.0% (net of debt issuance costs of $1,178 and $1,282 at December 31, 2020 and 2019, respectively), swapped $50,000 to variable interest rates of 2.4% to 2.6% in 2019		$	704,886		$	701,681
Other borrowings due through 2023, interest up to 2.0%			10,681			10,733
			715,567			712,414
Less current portion			111			112
Long-term debt, less current portion			715,456			712,302
Short-term debt
Amounts due banks, weighted average interest at 17.9% in 2020 and 4.9% in 2019			2,623			34,857
Current portion long-term debt			111			112
Total short-term debt			2,734			34,969
Total debt		$	718,190		$	747,271

At December 31, 2020 and 2019, the fair value of long-term debt, including the current portion, was approximately $793,591 and $721,494, respectively, which was determined using available market information and methodologies requiring judgment. Since judgment is required in interpreting market information, the fair value of the debt is not necessarily the amount which could be realized in a current market exchange.

Senior Unsecured Notes

On April 1, 2015, the Company entered into a Note Purchase Agreement pursuant to which it issued senior unsecured notes (the "2015 Notes") in the aggregate principal amount of $350,000 through a private placement. On October 20, 2016 the Company entered into a Note Purchase Agreement pursuant to which it issued senior unsecured notes (the "2016 Notes") in the aggregate principal amount of $350,000 through a private placement. Interest on the notes are payable semi-annually. The proceeds were used for general corporate purposes. The 2015 Notes and 2016 Notes contain certain affirmative and negative covenants. As of December 31, 2020, the Company was in compliance with all of its debt covenants.

The maturity and interest rates of the 2015 Notes and 2016 Notes are as follows:


		Amount			Maturity Date		Interest Rate
2015 Notes
Series A		$	100,000		August 20, 2025		3.15	%
Series B			100,000		August 20, 2030		3.35	%
Series C			50,000		April 1, 2035		3.61	%
Series D			100,000		April 1, 2045		4.02	%
2016 Notes
Series A		$	100,000		October 20, 2028		2.75	%
Series B			100,000		October 20, 2033		3.03	%
Series C			100,000		October 20, 2037		3.27	%
Series D			50,000		October 20, 2041		3.52	%

The Company’s total weighted average effective interest rate and remaining weighted average term, inclusive of the 2015 Notes and 2016 Notes, is 3.3% and 13.4 years, respectively.

Revolving Credit Agreement

The Company has a line of credit totaling $400,000 through the Amended and Restated Credit Agreement (the “Credit Agreement”). The Credit Agreement has a term of 5 years with a maturity date of June 30, 2022 and may be increased, subject to certain conditions, by an additional amount up to $100,000. The interest rate on borrowings is based on either the London Inter-Bank Offered Rate ("LIBOR") or the prime rate, plus a spread based on the Company’s leverage ratio, at the Company’s election. The Credit Agreement contains customary affirmative, negative and financial covenants for credit facilities of this type, including limitations on the Company and its subsidiaries with respect to liens, investments, distributions, mergers and acquisitions, dispositions of assets, transactions with affiliates, a fixed charges coverage ratio and total leverage ratio. As of December 31, 2020, the Company was in compliance with all of its covenants and had no outstanding borrowings under the Credit Agreement.

The Company has other lines of credit totaling $81,785. As of December 31, 2020 the Company was in compliance with all of its covenants and had $2,623 outstanding at December 31, 2020.

Shelf Agreements

On November 27, 2018, the Company entered into seven uncommitted master note facilities (the "Shelf Agreements") that allow borrowings up to $700,000 in the aggregate. The Shelf Agreements have a term of 5 years and the average life of borrowings cannot exceed 15 years. The Company is required to comply with covenants similar to those contained in the 2015 Notes and 2016 Notes. As of December 31, 2020, the Company was in compliance with all of its covenants and had no outstanding borrowings under the Shelf Agreements.

Other

Maturities of long-term debt, including payments for amounts due banks, for the five years succeeding December 31, 2020 are $111 in 2021, $109 in 2022, $10,609 in 2023, $0 in 2024, $200,000 in 2025 and $500,000 thereafter. Total interest paid was $26,332 in 2020, $24,950 in 2019 and $23,790 in 2018. The difference between interest paid and interest expense is due to the accrual of interest associated with the Senior Unsecured Notes and interest rate derivative contracts discussed in Note 15 to the consolidated financial statements.