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DEBT

3 Months Ended

Mar. 31, 2021

DEBT

6. DEBT

As of March 31, 2021 and December 31, 2020, the Company’s debt consisted of the following:


		March 31,			December 31,
(In millions)		2021			2020
Private Placement Term Loans:
3.66 %, payable through 2023		$	22.8		$	22.8
4.16 %, payable through 2027			34.0			34.0
3.37 %, payable through 2027			75.0			75.0
3.14 %, payable through 2031			160.4			169.6
4.31 %, payable through 2032			27.9			27.9
Title XI Debt:
5.34 %, payable through 2028			16.5			17.6
5.27 %, payable through 2029			18.7			19.8
1.22 %, payable through 2043			182.0			182.0
1.35 %, payable through 2044			136.6			139.6
Revolving credit facility, maturity date of March 31, 2026			25.0			71.8
Total Debt			698.9			760.1
Less: Current portion			(59.2)			(59.2)
Total Long-term Debt			639.7			700.9
Less: Deferred loan fees			(15.4)			(15.3)
Total Long-term Debt, net of deferred loan fees		$	624.3		$	685.6

Except as described below, the Company’s debt is described in Note 8 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Revolving Credit Facility Amendment: On March 31, 2021, the Company entered into the Second Amended and Restated Credit Agreement (the “Credit Agreement”). The Credit Agreement extends the maturity date to March 31, 2026, and retains the existing committed aggregate borrowings of up to $650 million, with an uncommitted option to increase the aggregate borrowings by up to $250 million. The Credit Agreement amended certain covenants and other terms set forth in the prior credit agreement, including (i) amending the pricing grid to provide for pricing ranging from, at the Company’s election, LIBOR plus a margin between 1.00 percent and 1.75 percent depending on the Company’s consolidated net leverage ratio, or base rate plus a margin between 0.00 percent and 0.75 percent depending on the Company’s consolidated net leverage ratio; (ii) reducing the maximum permitted consolidated leverage ratio to 3.50 to 1.0, with an option for a one-time increase to 4.0 to 1.0 in connection with a material acquisition; and (iii) removing certain limitations on stock redemptions and repurchases, sale leaseback transactions and asset sales, and the incurrence of priority debt. The Company may prepay any amounts outstanding under the Credit Agreement without premium or penalty. The Credit Agreement contains affirmative, negative and financial covenants customary for financings of this type, including, among other things, limitations on certain other indebtedness, loans and investments, liens, mergers, asset sales, and transactions with affiliates. The Credit Agreement also contains customary events of default. The Company paid fees of approximately $2.2 million in connection with the closing of the Credit Agreement which is included in other long-term assets in the Condensed Consolidated Balance Sheet as of March 31, 2021.

As of March 31, 2021, the Company had $616.9 million of remaining borrowing availability under the revolving credit facility. The Company used $8.1 million of the sublimit for letters of credit outstanding as of March 31, 2021. Based on the Company’s consolidated net leverage ratio, which stipulates borrowing margins, the interest rate applicable to revolving credit facility was approximately 1.58 percent at March 31, 2021. Borrowings under the revolving credit facility are classified as long-term debt in the Condensed Consolidated Balance Sheets, as principal payments are not required until the maturity date.

Private Placement Term Loans Amendments: On March 31, 2021, the Company and the holders of the private placement term loans entered into amendments (collectively, the “2021 Note Amendments”) to each of (i) the Third Amended and Restated Note Purchase Agreement and Private Shelf Agreement dated as of September 14, 2016, among the Company and the holders of the notes issued thereunder, as amended; and (ii) the Note Purchase Agreement dated December 21, 2016 among the Company and the holders of the notes issued thereunder, in each case as amended prior to such date.

The 2021 Note Amendments amended certain covenants and other terms, including (i) eliminating the Leverage Relief Period and associated quarterly interest enhancement payments; (ii) removing certain other fees and increases to interest rate; (iii) reducing the maximum permitted consolidated leverage ratio to 3.50 to 1.0, with an option for a one-time increase to 4.0 to 1.0 in connection with a material acquisition, with potential interest enhancement payments if leverage is over 3.25 to 1.0; and (iv) removing certain additional limitations on stock redemptions and repurchases, sale leaseback transactions and asset sales, and the incurrence of priority debt. The Company paid fees of approximately $0.8 million related to the 2021 Note Amendments which is included in deferred loan fees in debt in the Condensed Consolidated Balance Sheet as of March 31, 2021.

Debt Security and Guarantees: All of the debt of the Company and MatNav, including related guarantees, as of March 31, 2021 was unsecured, except for the Title XI debt.

Debt Maturities: As of March 31, 2021, debt maturities during the next five years and thereafter are as follows:


		As of
Year (in millions)		March 31, 2021
Remainder of 2021		$	44.8
2022			65.0
2023			60.4
2024			51.7
2025			51.7
Thereafter			425.3
Total Debt		$	698.9