Debt

3 Months Ended

Mar. 31, 2019

7. Debt

Overview

Our debt obligations consisted of the following as of the periods presented:

	March 31,		December 31,
	2019		2018
Term Debt, interest rate of 5.5% and 5.8% as of March 31, 2019 and December 31, 2018, respectively	$	676.6	$	678.3
Revolving Credit Facility ($300.0 available capacity less amounts reserved for letters of credit, which were $2.7 and $2.7 as of March 31, 2019 and December 31, 2018, respectively)		—		—
Canada Line of Credit (CDN $7.0 available capacity as of March 31, 2019 and December 31, 2018; USD $5.2 as of March 31, 2019 and USD $5.1 as of December 31, 2018)		—		—
Total debt		676.6		678.3
Less unamortized discount on Term Debt		1.6		1.7
Less unamortized debt issuance costs on Senior Notes and Term Debt		6.1		6.3
Less current portion of long-term debt		6.8		6.8
Long-term debt, less current portion	$	662.1	$	663.5

Senior Secured Credit Facility

On April 30, 2018, Ceridian completed the refinancing of its debt by entering into a new credit agreement. Pursuant to the terms of the new credit agreement, Ceridian became borrower of (i) a $680.0 term loan debt facility (the “2018 Term Debt”) and (ii) a $300.0 revolving credit facility (the “2018 Revolving Credit Facility”) (the 2018 Term Debt and the 2018 Revolving Credit Facility are together referred to as the “2018 Senior Secured Credit Facility”). The 2018 Senior Secured Credit Facility is secured by all assets of Ceridian. The 2018 Term Debt has a maturity date of April 30, 2025, and the 2018 Revolving Credit Facility has a maturity date of April 30, 2023. The 2018 Term Debt was subject to an interest rate of LIBOR plus 3.25%. As a result of a ratings upgrade on March 26, 2019, of our senior secured credit facilities by Moody’s Investors Service, from B3 to B2, the Company’s floating rate term debt interest rate is reduced from LIBOR plus 3.25% to LIBOR plus 3.00%, so long as the rating is maintained. Accrued interest related to the 2018 Senior Secured Credit Facility was $3.5 and $0.1 as of March 31, 2019 and December 31, 2018, respectively, and is included within Other accrued expenses in our condensed consolidated balance sheets.

Future Payments and Maturities of Debt

The future principal payments and maturities of our debt are as follows:

Years Ending December 31,	Amount
2019	$	5.1
2020		6.8
2021		6.8
2022		6.8
2023		6.8
Thereafter		644.3
	$	676.6

Fair Value of Debt

Our debt does not trade in active markets. Based on the borrowing rates currently available to us for bank loans with similar terms and average maturities and the limited trades of our debt, the fair value of our debt was estimated to be $674.9 and $649.5 as of March 31, 2019 and December 31, 2018, respectively.