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Debt | 6 Months Ended
--- | ---
Jun. 30, 2019
Debt Disclosure [Abstract] |
Debt | Note 6 –– Debt
(In millions) |  | June 30, 2019 |  |  | December 31, 2018 |
Current portion of finance lease |  | $ | 0.7 |  |  | $ | 0.3 |
Current portion of Euro term loan |  |  | 9.0 |  |  |  | 9.1 |
Current portion of debt |  |  | 9.7 |  |  |  | 9.4 |
Non-current portion of Euro term loan |  |  | 42.0 |  |  |  | 51.4 |
Senior unsecured credit facility |  |  | 378.0 |  |  |  | 202.0 |
4.7% senior notes --- due 2025 |  |  | 300.0 |  |  |  | 300.0 |
3.95% senior notes --- due 2027 |  |  | 400.0 |  |  |  | 400.0 |
Senior notes --- original issue discount |  |  | (1.9 | ) |  |  | (2.0 | )
Senior notes --- deferred financing costs |  |  | (4.5 | ) |  |  | (4.8 | )
Non-current portion of finance lease and other debt |  |  | 2.2 |  |  |  | 0.8 |
Long-term debt |  |  | 1,115.8 |  |  |  | 947.4 |
Total debt |  | $ | 1,125.5 |  |  | $ | 956.8 |
In June 2019, The Company refinanced its senior unsecured credit facility (“the Facility”), increasing borrowing capacity from $700 million to $1 billion. The maturity of the Facility is June 2024. The Facility provided for a reduction in interest costs, as well as less restrictive covenants. The initial interest rate for the Facility is LIBOR + 1.0%. The interest rate ranges from LIBOR + 0.875% to a maximum of LIBOR + 1.50%, depending upon the better of the Company’s leverage ratio or the credit rating. As of June 30, 2019 total borrowings under the Facility were $378 million, which approximates fair value. The Facility permits us to issue letters of credit up to an aggregate amount of $50 million. Outstanding letters of credit reduce the amount available for borrowing under our revolving loan. As of June 30, 2019 there were no issued letters of credit under the Facility, resulting in undrawn availability under the Facility of $622 million. The weighted average interest rate for the Facility was 4.44% for the six months ended June 30, 2019. The Facility contains financial and other covenants, including, but not limited customary restrictions on the incurrence of debt by our subsidiaries and the granting of liens, as well as the maintenance of an interest coverage ratio and a leverage ratio. As defined in the Facility Agreement, we are required to maintain a minimum interest coverage ratio of 3.50 (based on the ratio of EBITDA to interest expense) and may not exceed a maximum leverage ratio of 3.75 (based on the ratio of total debt to EBITDA) with a step up to 4.25 allowed following a significant acquisition. In addition, the Facility contains other customary terms and conditions such as representations and warranties, additional covenants and events of default. In 2017, the Company issued $400 million in aggregate principal amount of 3.95% Senior Unsecured Notes due in 2027. The interest rate on these senior notes may be increased 0.25% each time a credit rating applicable to the notes is downgraded. Conversely, such increases would be reversed should the credit rating be subsequently upgraded. The maximum rate is 5.95%. The effective interest rate for six months ended June 30, 2019 was 3.88% inclusive of approximately a 0.25% benefit of treasury locks. Based on quoted prices the fair value of the senior notes due in 2027 was $412.7 million at June 30, 2019. In 2016, we entered into a €60 million term loan. The loan has two tranches of which the first tranche for €25 million has a rate of Euribor +1.2% and a final maturity date of June 30, 2023, and a second tranche for €35 million has a rate of Euribor +1.25% with a final maturity date of June 30, 2024. The loans are payable in annual installments that began on June 30, 2017, for the first tranche, and on June 30, 2019, for the second. There is a zero percent floor on the Euribor. Amounts outstanding under this loan at June 30, 2019 were $51.0 million which approximates fair value under the market approach. In 2015, the Company issued $300 million in aggregate principal amount of 4.7% Senior Unsecured Notes due in 2025. The interest rate on these senior notes may be increased by 0.25% each time a credit rating applicable to the notes is downgraded. Conversely, such increases would be reversed should the credit rating be subsequently upgraded. The maximum rate is 6.7%. The effective interest rate for the six months ended June 30, 2019 was 4.83%. Based on quoted prices, the fair value of these notes was $325.5 million at June 30, 2019.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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