Debt and Financing Arrangements

9 Months Ended

Jan. 31, 2020

Long-term debt consists of the following:


	January 31, 2020						April 30, 2019
	Principal Outstanding		Carrying Amount (A)		Principal Outstanding		Carrying Amount (A)
2.20% Senior Notes due December 6, 2019	$	—	$	—	$	300.0	$	299.5
2.50% Senior Notes due March 15, 2020	500.0		499.8		500.0		499.0
3.50% Senior Notes due October 15, 2021	750.0		762.9		750.0		768.4
3.00% Senior Notes due March 15, 2022	400.0		398.5		400.0		398.0
3.50% Senior Notes due March 15, 2025	1,000.0		995.8		1,000.0		995.2
3.38% Senior Notes due December 15, 2027	500.0		496.6		500.0		496.2
4.25% Senior Notes due March 15, 2035	650.0		643.8		650.0		643.5
4.38% Senior Notes due March 15, 2045	600.0		586.4		600.0		586.0
Term Loan Credit Agreement due May 14, 2021	700.0		699.3		800.0		799.0
Total long-term debt	$	5,100.0	$	5,083.1	$	5,500.0	$	5,484.8
Current portion of long-term debt	500.0		499.8		800.0		798.5
Total long-term debt, less current portion	$	4,600.0	$	4,583.3	$	4,700.0	$	4,686.3

(A) Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of capitalized debt issuance costs, terminated interest rate contracts, and offering discounts.

We entered into interest rate contracts in November 2018 and June 2018, with notional values of $300.0 and $500.0, respectively, to manage our exposure to interest rate volatility associated with anticipated debt financing in 2020. These interest rate contracts are designated as cash flow hedges, and as a result, the mark-to-market gains or losses on these contracts are deferred and included as a component of accumulated other comprehensive income (loss) and reclassified to interest expense in the period during which the hedged transactions affect earnings. At January 31, 2020, unrealized losses of $168.9 were deferred in accumulated other comprehensive income (loss) for these derivative instruments. For additional information, see Note 11: Derivative Financial Instruments.

In April 2018, we entered into a senior unsecured delayed-draw Term Loan Credit Agreement (“Term Loan”) with a syndicate of banks and an available commitment amount of $1.5 billion. The full amount of the Term Loan was drawn on May 14, 2018, to partially finance the Ainsworth acquisition, as discussed in Note 3: Acquisition. Borrowings under the Term Loan bear interest on the prevailing U.S. Prime Rate or London Interbank Offered Rate (“LIBOR”), based on our election, and are payable either on a quarterly basis or at the end of the borrowing term. The Term Loan does not require scheduled amortization payments. Voluntary prepayments are permitted without premium or penalty. As of January 31, 2020, we have prepaid $800.0 on the Term Loan to date, including $100.0 in 2020. The interest rate on the Term Loan at January 31, 2020, was 2.45 percent. In November 2019, we entered into an amendment to the Term Loan that decreased the applicable margins on LIBOR, based on our long-term unsecured debt rating. This amendment did not have a material impact on our condensed consolidated financial statements.

All of our Senior Notes outstanding at January 31, 2020, are unsecured and interest is paid semiannually, with no required scheduled principal payments until maturity. We may prepay all or part of the Senior Notes at 100 percent of the principal amount thereof, together with the accrued and unpaid interest, and any applicable make-whole amount.

We have available a $1.8 billion unsecured revolving credit facility with a group of 11 banks that matures in September 2022. Borrowings under the revolving credit facility bear interest on the prevailing U.S. Prime Rate, LIBOR, or Canadian Dealer Offered Rate, based on our election. Interest is payable either on a quarterly basis or at the end of the borrowing term. We did not have a balance outstanding under the revolving credit facility at January 31, 2020, or April 30, 2019.

We participate in a commercial paper program under which we can issue short-term, unsecured commercial paper not to exceed $1.8 billion at any time. The commercial paper program is backed by our revolving credit facility and reduces what we can borrow under the revolving credit facility by the amount of commercial paper outstanding. Commercial paper will be used as a continuing source of short-term financing for general corporate purposes. As of January 31, 2020, and April 30, 2019, we had $310.0 and $426.0 of short-term borrowings outstanding, respectively, which were issued under our commercial paper program at weighted-average interest rates of 1.79 percent and 2.75 percent, respectively.

Interest paid totaled $18.3 and $24.4 for the three months ended January 31, 2020 and 2019, respectively, and $118.3 and $131.8, for the nine months ended January 31, 2020 and 2019, respectively. This differs from interest expense due to the timing of interest payments, effect of interest rate contracts, amortization of debt issuance costs and discounts, capitalized interest, and payment of other debt fees.

Our debt instruments contain certain financial covenant restrictions, including a leverage ratio and an interest coverage ratio. We are in compliance with all covenants.