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Debt
 6 Months Ended
Jun. 30, 2013
Debt Disclosure [Abstract]  
Debt

Note 4. Debt

 

Debt at June 30, 2013 and December 31, 2012 was as follows (in millions):

  June 30, December 31,
  2013 2012
Allegheny Technologies 5.95% Notes due 2021$ 500.0 $ 500.0
Allegheny Technologies 4.25% Convertible Notes due 2014  402.5   402.5
Allegheny Technologies 9.375% Notes due 2019  350.0   350.0
Allegheny Ludlum 6.95% debentures due 2025  150.0   150.0
ATI Ladish Series B 6.14% Notes due 2016 (a)  18.6   24.8
ATI Ladish Series C 6.41% Notes due 2015 (b)  31.7   32.5
Domestic Bank Group $400 million unsecured credit facility  -   -
Foreign credit facilities  14.5   14.2
Industrial revenue bonds, due through 2020, and other  6.6   6.1
Total short-term and long-term debt  1,473.9   1,480.1
Short-term debt and current portion of long-term debt  420.3   17.1
Total long-term debt$ 1,053.6 $ 1,463.0

  • Includes fair value adjustments of $1.4 million at June 30, 2013 and $1.9 million at December 31, 2012.
  • Includes fair value adjustments of $1.7 million at June 30, 2013 and $2.5 million at December 31, 2012.

 

In May 2013, the Company amended its $400 million senior unsecured domestic revolving credit facility to, among other things, extend the expiration date of the commitments of the lenders thereunder to May 31, 2018 and to modify the maximum leverage ratio permitted under the facility. Under the terms of the facility, the Company may increase the size of the credit facility by up to $100 million without seeking the further approval of the lending group. As amended, the facility requires the Company to maintain a leverage ratio (consolidated total indebtedness divided by consolidated earnings before interest, taxes and depreciation and amortization for the four prior fiscal quarters) of not greater than 4.0 beginning with the quarter ended June 30, 2013. The maximum leverage ratio is reduced to 3.75 beginning with the quarter ended March 31, 2015 and further reduced to 3.50 beginning with the quarter ended June 30, 2015 and for each fiscal quarter thereafter. The credit facility continues to require that the company maintain an interest coverage ratio (consolidated earnings before interest and taxes divided by interest expense) of not less than 2.0. At June 30, 2013, the leverage ratio was 3.29 and the interest coverage ratio was 4.09. The definition of consolidated earnings before interest and taxes, and consolidated earnings before interest, taxes, depreciation and amortization as used in the interest coverage and leverage ratios excludes any non-cash pension expense or income, and consolidated indebtedness in the leverage ratio is net of cash on hand in excess of $50 million. The Company was in compliance with these required ratios during all applicable periods. As of June 30, 2013, there were no outstanding borrowings made against the facility, although a portion of the facility was used to support approximately $4 million in letters of credit. The facility includes a $200 million sublimit for the issuance of letters of credit.

 

The Company has an additional separate credit facility for the issuance of letters of credit. As of June 30, 2013, $32 million in letters of credit were outstanding under this facility.

 

In addition, Shanghai STAL Precision Stainless Steel Company Limited (STAL), the Company's Chinese joint venture company in which ATI has a 60% interest, has a 205 million renminbi (approximately $33 million at June 30, 2013 exchange rates) revolving credit facility with a group of banks, which expires in August 2014. This credit facility is supported solely by STAL's financial capability without any guarantees from the joint venture partners. As of June 30, 2013, there were no borrowings under this credit facility.

 

The ATI Ladish Series B and Series C Notes are guaranteed by ATI and are equally ranked with all of ATI's existing and future senior unsecured debt.