Debt

6 Months Ended

Jun. 30, 2020

Debt maturing within one year:


(in Millions)	June 30, 2020		December 31, 2019
Short-term foreign debt ⁽¹⁾	$	182.4	$	144.9
Commercial paper ⁽²⁾	243.1		—
Total short-term debt	$	425.5	$	144.9
Current portion of long-term debt	80.4		82.8
Total short-term debt and current portion of long-term debt	$	505.9	$	227.7

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(1) At June 30, 2020, the average effective interest rate on the borrowings was 11.0 percent.

(2) At June 30, 2020, the average effective interest rate on the borrowings was 1.1 percent.

Long-term debt:


(in Millions)	June 30, 2020
		Interest Rate Percentage		Maturity Date			June 30, 2020			December 31, 2019
Pollution control and industrial revenue bonds (less unamortized discounts of $0.1 and $0.2, respectively)	0.3% - 6.5%		2021 - 2032		$	51.7		$	51.6
Senior notes (less unamortized discount of $1.1 and $1.3, respectively)	3.2% - 4.5%		2022 - 2049		2,198.9			2,198.7

2017 Term Loan Facility	1.4%		2022		800.0			800.0
Revolving Credit Facility ⁽¹⁾	2.8%		2024		—			—

Foreign debt	0% - 6.1%		2020 - 2024		79.0			83.8
Debt issuance cost					(21.7)			(20.2)
Total long-term debt					$	3,107.9		$	3,113.9
Less: debt maturing within one year					80.4			82.8
Total long-term debt, less current portion					$	3,027.5		$	3,031.1

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(1)Letters of credit outstanding under our Revolving Credit Facility totaled $215.3 million and available funds under this facility were $1,041.6 million at June 30, 2020.

Revolving Credit Facility Agreement Amendment

On April 22, 2020, the Company entered into Amendment No. 1 (the "Revolving Credit Amendment") to the Third Amended and Restated Credit Agreement, dated as of May 17, 2019, among the Company, as U.S. Borrower, certain foreign subsidiaries of the Company party thereto, as Euro Borrowers, the lenders (the "Revolving Credit Lenders") and issuing banks party thereto, Citibank, N.A., as administrative agent, Citibank, N.A. and BofA Securities, Inc., as joint lead arrangers, Bank of America, N.A., as syndication agent, and certain other financial institutions party thereto as co-documentation agents (the "Revolving Credit Agreement"). Among other things, the Revolving Credit Amendment amends the maximum leverage ratio financial covenant in the Revolving Credit Agreement and adds a negative covenant restricting purchases of the Company’s stock if at any time the maximum leverage ratio exceeds 3.5 through the period ending June 30, 2021.

2017 Term Loan Agreement Amendment

On April 22, 2020, the Company entered into Amendment No. 2 (the "Term Loan Amendment") to the Term Loan Agreement, dated as of May 2, 2017, among the Company, as U.S. Borrower, certain foreign subsidiaries of the Company party thereto, as Euro Borrowers, the lenders party thereto (the "Term Loan Lenders"), Citibank, N.A., as administrative agent, Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as joint lead arrangers, Bank of America, N.A., as syndication agent, and certain other financial institutions party thereto as co-documentation agents (as previously amended, the "Term Loan Agreement"). Among other things, the Term Loan Amendment amends the maximum leverage ratio financial covenant in the Term Loan Agreement and adds a negative covenant restricting purchases of the Company’s stock if at any time the maximum leverage ratio exceeds 3.5 through the period ending June 30, 2021.

Deferred financing fees totaling $3.5 million associated with both amendments have been deferred and is being recognized to interest expense over the life of the agreements.

Covenants

Among other restrictions, our Revolving Credit Facility and 2017 Term Loan Facility contain financial covenants applicable to FMC and its consolidated subsidiaries related to leverage (measured as the ratio of debt to adjusted earnings) and interest coverage (measured as the ratio of adjusted earnings to interest expense). Our actual leverage for the four consecutive quarters ended June 30, 2020 was 3.2, which is below the maximum leverage of 4.25 at June 30, 2020. As amended pursuant to the Revolving Credit Amendment and the Term Loan Amendment discussed above, the maximum leverage ratio has been increased to 4.25 through the period ending December 31, 2020. The maximum leverage ratio will step down to 4.0 for the quarter ending March 31, 2021 and then to 3.5 for future quarters. Our actual interest coverage for the four consecutive quarters ended June 30, 2020 was 7.3, which is above the minimum interest coverage of 3.5. We were in compliance with all covenants at June 30, 2020.