XML 29 R21.htm IDEA: XBRL DOCUMENT v3.24.2
Borrowings
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Borrowings

11. Borrowings

The Company’s outstanding borrowings consisted of the following (in millions):

 

 

June 30, 2024

 

 

December 31, 2023

 

Commercial paper (a)

 

$

494.8

 

 

$

364.9

 

Notes:

 

 

 

 

 

 

2.850% notes due 2025 (b)

 

 

500.0

 

 

 

500.0

 

1.350% notes due 2026 (b)

 

 

600.0

 

 

 

600.0

 

2.750% notes due 2031 (b)

 

 

300.0

 

 

 

300.0

 

6.200% notes due 2036 (b)

 

 

500.0

 

 

 

500.0

 

6.200% notes due 2040 (b)

 

 

250.0

 

 

 

250.0

 

Total borrowings at par value

 

 

2,644.8

 

 

 

2,514.9

 

Debt issuance costs and unamortized discount, net

 

 

(9.0

)

 

 

(10.3

)

Total borrowings at carrying value (c)

 

$

2,635.8

 

 

$

2,504.6

 

 

 

(a)
Pursuant to the Company’s commercial paper program, the Company may issue unsecured commercial paper notes in an amount not to exceed $1.25 billion outstanding at any time, reduced to the extent of borrowings outstanding on the Company’s revolving credit facility. The commercial paper notes may have maturities of up to 397 days from date of issuance. The Company’s commercial paper borrowings as of June 30, 2024 had a weighted-average annual interest rate of approximately 5.6% and a weighted-average term of approximately 4 days.
(b)
The difference between the stated interest rate and the effective interest rate is not significant.
(c)
As of June 30, 2024, the Company’s weighted-average effective rate on total borrowings was approximately 4.1%.

 

The following summarizes the Company’s maturities of its notes at par value as of June 30, 2024 (in millions):

 

Due within 1 year

 

$

500.0

 

Due after 1 year through 2 years

 

 

600.0

 

Due after 2 years through 3 years

 

 

—

 

Due after 3 years through 4 years

 

 

—

 

Due after 4 years through 5 years

 

 

—

 

Due after 5 years

 

 

1,050.0

 

Total

 

$

2,150.0

 

 

The Company’s obligations with respect to its outstanding borrowings, as described above, rank equally.

Term Loan Facility

On June 25, 2024, the Company entered into a delayed draw term loan credit agreement providing for an unsecured term loan facility in an aggregate amount of $800.0 million (the “Term Loan Facility”). The Company has until December 15, 2024 to draw upon the Term Loan Facility, which matures on the third anniversary of the initial funding date. The Company has the option to increase the commitments under the Term Loan Facility by an amount such that the commitments do not exceed $1.0 billion in the aggregate (after giving effect to any such increases). Any such increases would be subject to obtaining additional commitments from existing or new lenders under the Term Loan Facility. The Company plans to use the proceeds from the Term Loan Facility to refinance the Company’s issued and outstanding 2.850% notes due January 2025, to reduce commercial paper balances, and for general corporate purposes.

The Term Loan Facility contains covenants, subject to certain exceptions, that, among other things, limit or restrict the Company's ability to sell or transfer assets or merge or consolidate with another company, grant certain types of security interests, incur certain types of liens, impose restrictions on subsidiary dividends, enter into sale and leaseback transactions, incur certain subsidiary level indebtedness, or use proceeds in violation of anti-corruption or anti-money laundering laws. The Term Loan Facility requires the Company to maintain a consolidated Earnings before Interest, Taxes, Depreciation, and Amortization interest coverage ratio of not less than 3:1 for any period of four consecutive fiscal quarters. The Term Loan Facility also contains customary representations, warranties and events of default.

Generally, interest under the Term Loan Facility will be calculated using either (i) a rate per annum equal to an adjusted base rate for such interest period or (ii) a rate per annum equal to an adjusted term Secured Overnight Financing Rate for such interest period. A ticking fee on the undrawn amount of the Term Loan Facility is also payable quarterly. Both the interest rate margin and ticking fee are based on certain of the Company's credit ratings and will increase or decrease in the event of certain upgrades or downgrades in the Company’s credit ratings.

As of June 30, 2024, the Company had no outstanding borrowings under the Term Loan Facility.