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Long-Term Debt and Commitments | 12 Months Ended
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Dec. 31, 2017
Long-Term Debt and Commitments [Abstract] |
Long-Term Debt and Commitments | Note 12. Long-Term Debt and Commitments The following is a summary of long term debt:
|  | December 31, |
|  | 2017 |  |  | 2016 |
|  | (millions of dollars) |
Term Loan Facility- Variable Tranche due February 14, 2024, net of unamortized discount and deferred financing costs of $ 22.7 million and $ 25.8 million |  | $ | 655.3 |  |  | $ | 762.3 |
Term Loan Facility- Fixed Tranche due May 9, 2021, net of unamortized discount and deferred financing costs of $0.5 million and $0.6 million |  | $ | 299.5 |  |  | $ | 299.4 |
Japan Loan Facilities |  |  | 5.6 |  |  |  | 5.8 |
China Loan Facilities |  |  | 3.2 |  |  |  | 9.2 |
Total |  | $ | 963.6 |  |  | $ | 1,076.7 |
Less: Current maturities |  |  | 3.8 |  |  |  | 6.8 |
Long-term debt |  | $ | 959.8 |  |  | $ | 1,069.9 |
On May 9, 2014, in connection with the acquisition of AMCOL International Corporation (“AMCOL”), the Company entered into a credit agreement providing for a $1,560 million senior secured term loan facility (the “Term Facility”) and a $200 million senior secured revolving credit facility (the “Revolving Facility” and, together with the Term Facility, the “Facilities”). On June 23, 2015, the Company entered into an amendment (the “First Amendment”) to the credit agreement to reprice the $1.378 billion then outstanding on the Term Facility. As amended, the Term Facility had a $1.078 billion floating rate tranche and a $300 million fixed rate tranche. On February 14, 2017, the Company entered into an amendment (the “Second Amendment”) to the credit agreement to reprice the $788 million floating rate tranche then outstanding, which extended the maturity and lowered the interest costs by 75 basis points. Following the Second Amendment, the loans outstanding under the floating rate tranche of the Term Facility will mature on February 14, 2024, the loans outstanding under the fixed rate tranche of the Term Facility will mature on May 9, 2021 and the loans outstanding (if any) and commitments under the Revolving Facility will mature and terminate, as the case may be, on May 9, 2019. After the Second Amendment, loans under the floating rate tranche of the Term Facility bear interest at a rate equal to an adjusted LIBOR rate (subject to a floor of 0.75%) plus an applicable margin equal to 2.25% per annum. Loans under the fixed rate tranche of the Term Facility bear interest at a rate of 4.75%. Loans under the Revolving Facility will bear interest at a rate equal to an adjusted LIBOR rate plus an applicable margin equal to 1.75% per annum. Such rates are subject to decrease by up to 25 basis points in the event that, and for so long as, the Company’s net leverage ratio (as defined in the credit agreement) is less than certain thresholds. The floating rate tranche of the Term Facility was issued at par and the fixed rate tranche of the Term Facility was issued at a 0.25% discount in connection with the First Amendment. The variable rate tranche of the Term Facility was issued at a 0.25% discount in connection with the Second Amendment. The variable rate tranche has a 1% required amortization per year. The Company will pay certain fees under the credit agreement, including customary annual administration fees. The loans under the fixed rate tranche of the Term Facility are subject to prepayment premiums in the event of certain prepayments prior to the third anniversary of the effective date of the First Amendment. The obligations of the Company under the Facilities are unconditionally guaranteed jointly and severally by, subject to certain exceptions, all material domestic subsidiaries of the Company (the “Guarantors”) and secured, subject to certain exceptions, by a security interest in substantially all of the assets of the Company and the Guarantors. The credit agreement contains certain customary affirmative and negative covenants that limit or restrict the ability of the Company and its restricted subsidiaries to enter into certain transactions or take certain actions. In addition, the credit agreement contains a financial covenant that requires the Company, if on the last day of any fiscal quarter loans or letters of credit were outstanding under the Revolving Facility (excluding up to $15 million of letters of credit), to maintain a maximum net leverage ratio (as defined in the credit agreement) of, initially, 5.25 to 1.00 for the four fiscal quarter period preceding such day. Such maximum net leverage ratio requirement is subject to decrease during the duration of the facility to a minimum level (when applicable) of 3.50 to 1.00. As of December 31, 2017, there were no loans and $12.9 million in letters of credit outstanding under the Revolving Facility. The Company is in compliance with all the covenants associated with the Revolving Facility as of the end of the period covered by this report. During 2017, the Company repaid $110 million on its Term Facility. The Company has four committed loan facilities for the funding of new manufacturing facilities in China, for a combined 94.8 million RMB and $1.8 million. In December 2016, the Company entered into a committed loan facility in Japan in the amount of 680 million Yen (approximately $6.0 million). As of December 31, 2017, on a combined basis, $8.8 million was outstanding. Principal will be repaid in accordance with the payment schedules ending in 2021. The Company repaid $6.9 million on these loans in 2017. As of December 31, 2017, the Company had $37.1 million in uncommitted short-term bank credit lines, of which approximately $6.3 million was in use. Short-term borrowings as of December 31, 2017 and 2016 were $6.3 million and $6.1 million, respectively. The weighted average interest rate on short-term borrowings outstanding as of December 31, 2017 and December 31, 2016 was 3.9% and 3.7%, respectively. The aggregate maturities of long-term debt are as follows: $3.8 million in 2018; $0.6 million in 2019; $0.6 million in 2020, $304 million in 2021; $0.0 million in 2022 and $678 million thereafter. During 2017, 2016 and 2015, respectively, the Company incurred interest costs of $45.4 million, $56.5 million and $62.6 million, including $0.2 million, $0.1 million and $0.5 million, respectively, which were capitalized. Interest paid approximated the incurred interest cost.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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