Debt including Finance Lease Obligations

6 Months Ended

Jun. 30, 2020

Debt including Finance Lease Obligations

Current and long-term debt including finance lease obligations consisted of the following:


	June 30, 2020
In millions, except percentages	Interest rate	Maturity date	June 30, 2020		December 31, 2019

Revolving Credit Facility ⁽¹⁾	1.67%	2023	$	220.0	$	131.3
Term Loans	1.71%	2022-2023	731.2		740.6
Senior Notes	4.50%	2026	300.0		300.0
Finance lease obligations	7.67%	2027	80.0		80.0
Other	4.86%	2020-2021	5.1		5.9
Total debt including finance lease obligations			1,336.3		1,257.8
Less: debt issuance costs			6.1		6.9
Total debt including finance lease obligations, net of debt issuance costs			1,330.2		1,250.9
Less: debt maturing within one year ⁽²⁾			21.7		22.5
Long-term debt including finance lease obligations			$	1,308.5	$	1,228.4

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(1) Letters of credit outstanding under the revolving credit facility were $2.2 million and undrawn capacity under the facility was $527.8 million at June 30, 2020.

(2) Debt maturing within one year is included in "Notes payable and current maturities of long-term debt" on the condensed consolidated balance sheets.

Debt Covenants

Our 4.50 percent senior unsecured notes due in 2026 (the "Senior Notes") contain certain customary covenants (including covenants limiting Ingevity's and its restricted subsidiaries’ ability to grant or permit liens on certain property securing debt, declare or pay dividends, make distributions on or repurchase or redeem capital stock, make investments in unrestricted subsidiaries, engage in sale and lease-back transactions, and engage in a consolidation or merger, or sell, transfer or otherwise dispose of all or substantially all of the assets of our and our restricted subsidiaries, taken as a whole, subject, in each of the above cases, to certain qualifications and exceptions) and events of default (subject in certain cases to customary exceptions, as well as grace and cure periods). The occurrence of an event of default under the Senior Notes could result in the acceleration of the Senior Notes and could cause a cross-default that could result in the acceleration of other indebtedness of Ingevity and its subsidiaries.

The revolving credit facility and term loans contain customary default provisions, including defaults for non-payment, breach of representations and warranties, insolvency, non-compliance with covenants and cross-defaults to other material indebtedness. The occurrence of an uncured event of default under the revolving credit facility and term loans could result in all loans and other obligations becoming immediately due and payable and the facilities being terminated. The revolving credit facility and term loans' financial covenants require Ingevity to maintain on a consolidated basis a maximum total leverage ratio of 4.0 to 1.0 (which may be increased to 4.5 to 1.0 under certain circumstances) and a minimum interest coverage ratio of 3.0 to 1.0. Our actual leverage for the four consecutive quarters ended June 30, 2020 was 3.5, and our actual interest coverage for the four consecutive quarters ended June 30, 2020 was 7.2. We were in compliance with all covenants at June 30, 2020.