Short and Long-Term Debt

Short-Term Debt

Short-term borrowings with banks, which excludes the current portion of long-term debt, was insignificant at December 31, 2017 and 2016, respectively. The average month-end balance of total short-term borrowings during 2017 was $0.1 million. The maximum month-end balance of $0.2 million occurred in July, 2017.

Long-Term Debt



	December 31,
(In thousands)	2017		2016
2006 Senior Notes payable through 2021, 5.41%, net of debt issuance costs	$	26,667	$	33,333
2010 Senior Notes payable through 2021, 4.00%, net of debt issuance costs	80,000		100,000
2016 Senior Notes payable through 2031, 3.40%, net of debt issuance costs	74,139		67,713
Senior revolving credit facility maturing in 2020, net of debt issuance costs	293,693		189,456
Total	474,499		390,502
Amounts due within one year	26,667		26,666
Long-term debt	$	447,832	$	363,836

Under the 2015 Amended and Restated Credit Agreement associated with our senior revolving credit facility, the Company may elect either a Base rate of interest (“BASE”) or an interest rate based on the London Interbank Offered Rate (“LIBOR”). The BASE is a daily fluctuating per annum rate equal to the highest of (i) the Prime Rate, (ii) the Federal Funds Open Rate plus one half of one percent (0.5%) or (iii) the Daily Libor Rate plus one percent (1.00%). The Company pays a credit spread of 0 to 175 basis points based on the Company’s net EBITDA leverage ratio and elected rate (BASE or LIBOR). The Company has a weighted average revolver interest rate of 2.73% as of December 31, 2017. At December 31, 2017, $273.5 million of the existing $575.0 million senior revolving credit facility was unused, including letters of credit.

On January 22, 2016, the Company entered into multi-currency note purchase and private shelf agreement, pursuant to which MSA issued notes in an aggregate original principal amount of £54.9 million (approximately $74.2 million at December 31, 2017). The Notes are repayable in annual installments of £6.1 million (approximately $8.2 million at December 31, 2017), commencing January 22, 2023, with a final payment of any remaining amount outstanding on January 22, 2031. The interest rate on these notes is fixed at 3.4%. The note purchase agreement requires MSA to comply with specified financial covenants including a requirement to maintain a minimum fixed charges coverage ratio of not less than 1.50 to 1.00 and a consolidated leverage ratio not to exceed 3.25 to 1.00; in each case calculated on the basis of the trailing four fiscal quarters. In addition, the note purchase agreement contains negative covenants limiting the ability of MSA and its subsidiaries to incur additional indebtedness or issue guarantees, create or incur liens, make loans and investments, make acquisitions, transfer or sell assets, enter into transactions with affiliated parties, make changes in its organizational documents that are materially adverse to lenders or modify the nature of MSA's or its subsidiaries' business.

Approximate maturities on our long-term debt over the next five years are $26.7 million in 2018, $26.7 million in 2019, $321.5 million in 2020, $26.7 million in 2021, none in 2022, and $74.2 million thereafter. The revolving credit facilities require the Company to comply with specified financial covenants. In addition, the credit facilities contain negative covenants limiting the ability of the Company and its subsidiaries to enter into specified transactions. The Company was in compliance with all covenants at December 31, 2017.

The Company had outstanding bank guarantees and standby letters of credit with banks as of December 31, 2017, totaling $13.3 million, of which $6.6 million relate to the senior revolving credit facility. The letters of credit serve to cover customer requirements in connection with certain sales orders and insurance companies. The full amount of the letters of credit remains unused and available at December 31, 2017. The Company is also required to provide cash collateral in connection with certain arrangements. At December 31, 2017, the Company has $3.6 million of restricted cash in support of these arrangements.