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Debt
 12 Months Ended
Dec. 31, 2023
Debt [Abstract]  
Debt
6. Debt

Long-term Debt
Long-term debt consisted of the following unsecured obligations at December 31:

(In thousands)
  
2023
    
2022
  
3.66% senior notes due November 2023
  
$
-
    
$
75,000
  
3.65% senior notes due May 2024
    
27,000
      
27,000
  
4.19% senior notes due November 2025
    
25,000
      
25,000
  
6.08% senior notes due November 2026     35,000       -  
6.14% senior notes due November 2027     35,000       -  
4.94% senior notes due May 2028     75,000       -  
6.34% senior notes due November 2029     35,000       -  
3.06% Euro-denominated senior notes due November 2023
    
-
      
40,945
  
1.27% Euro-denominated senior notes due May 2024
    
55,194
      
53,527
  
1.71% Euro-denominated senior notes due May 2027
    
44,155
      
42,822
  
4.15% Euro-denominated senior notes due May 2028     44,155       -  
4.62% Euro-denominated senior notes due November 2029     44,155       -  
2.53% British Pound-denominated notes due November 2023
    
-
      
30,208
  
2.76% British Pound-denominated notes due November 2025
    
31,827
      
30,208
  
Euro-denominated term loan
    
82,790
      
80,291
  
Revolving Credit Facilities
    
111,039
      
225,469
  
Various other notes
    
117
      
622
  
Total debt
    
645,432
      
631,092
  
Less debt fees
    
(230
)
    
(260
)
Less current portion
    
(117
)
    
(501
)
Total long-term debt
  
$
645,085
    
$
630,331
  

In November 2022, the Company entered into a €75 million unsecured term loan (Term Loan) with PNC Bank, N.A (PNC Bank) that matures in November 2024. The Company immediately borrowed the full amount of the Term Loan and used the proceeds to repay the €66.9 million 1.85% senior note that came due in November 2022 and a portion of outstanding borrowings on the Company’s revolving credit facility. The term loan will act as a partial hedge of the Company’s net asset position in Euros. See Note 7, Derivative Instruments and Hedging Activity, for additional information. Borrowings on the Term Loan bear interest at a variable rate, based upon the Eurocurrency Rate and including a margin percentage dependent upon the Company’s leverage ratio, as described below. The average interest rate on the Term Loan was 4.49% for the year ended December 31, 2023.

In December 2022, the Company amended the amended and restated credit agreement (Credit Agreement) to, among other things, transition from the London Inter-Bank Offered Rate to: (i) the Secured Overnight Financing Rate (SOFR) as the benchmark rate under the Credit Agreement for borrowings denominated in U.S. dollars and (ii) the Euro Interbank Offered Rate for borrowings denominated in Euros. Borrowings under the revolving credit facility bear interest at a variable rate, based upon the applicable reference rate and including a margin percentage dependent upon the Company’s leverage ratio, as described below.

The borrowings under the revolving credit facility, excluding borrowings on the accounts receivable securitization program, had an average interest rate of 5.74% and 3.01% for the years ended December 31, 2023 and 2022, respectively.

In May 2023, the Company entered into an agreement to issue $75 million and €40 million in five-year, fixed-rate, senior notes at coupon rates of 4.94% and 4.15%, respectively. The notes were issued in May 2023, and the proceeds were used to repay a portion of existing indebtedness under the Company’s Credit Agreement. The notes will mature in May 2028.

In August 2023, the Company amended its accounts receivable securitization program with Wells Fargo Bank N.A. (Wells Fargo) to extend the termination date from August 2023 to August 2024. Under the amended program, Wells Fargo has extended a secured loan (Secured Loan) of up to $85 million to the Company secured by Wells Fargo’s undivided interests in certain of the Company’s trade accounts receivables. The interest rate on the Secured Loan is the SOFR as administered by the Federal Reserve Bank of New York plus a 10 basis point Term SOFR Adjustment plus an Applicable Margin of 70 basis points. The Company has the intent and ability either to refinance the Secured Loan with available funds from the Company’s existing long-term revolving credit facility or to extend its accounts receivable program with Wells Fargo when it matures. Accordingly, the Secured Loan has been classified as long-term debt on the Company’s Consolidated Balance Sheet and is included with the Revolving Credit Facilities above. As of December 31, 2023, the amount was fully drawn.

In November 2023, the Company entered into a fixed rate, senior note purchase agreement with the purchasers named therein pursuant to which the Company issued $105 million of U.S. dollar-denominated senior notes and €40 million of Euro-denominated senior notes. The three U.S. dollar-denominated notes were issued for $35 million each, maturing in November 2026, November 2027, and November 2029, and bearing interest rates of 6.08%, 6.14%, and 6.34%, respectively. The Euro-denominated note was issued for €40 million, maturing in November 2029 and bearing an interest rate of 4.62%. The proceeds were used to refinance the $75 million 3.66% senior notes due in November 2023 and the €38.2 million 3.06% senior notes due in November 2023, and to repay a portion of the Company’s revolving credit borrowings, including the borrowings previously used to repay the existing balance due on the Company’s 25 million Great British Pound 2.53% senior notes due in November 2023.

The aggregate amounts of contractual maturities on long-term debt subsequent to December 31, 2023, are as follows:

(In thousands)
      
Year ending December 31,
      
2024
  
$
249,849
  
2025
    
56,795
  
2026
    
61,013
  
2027
    
79,135
  
2028
    
119,144
  
Thereafter
     79,149
  
Total long-term debt maturities
  
$
645,085
  

The Company had $317.8 million available under the revolving credit facility and $32.2 million available under other lines of credit from several banks at December 31, 2023.

Substantially all of the senior financing obligations contain restrictions concerning interest coverage, borrowings, and investments. The most restrictive loan covenants require a Leverage Ratio less than 3.5 and an Interest Coverage Ratio greater than 3.0, in each case, as defined in the Company’s Credit Agreement. The Company is in compliance with all of these restrictions at December 31, 2023.

The Company had stand-by and trade letters of credit outstanding of $6.2 million and $2.8 million as of December 31, 2023 and 2022, respectively.

Short-term Borrowings
The Company’s short-term borrowings consisted of the following items at December 31:

(In thousands)
  
2023
    
2022
  
U.S. credit facilities
  
$
13,343
    
$
19,872
  
Current maturities of long-term debt
    
117
      
501
  
Total
  
$
13,460
    
$
20,373
  

The weighted average interest rates on short-term borrowings were 6.58% and 5.47% at December 31, 2023 and 2022, respectively.