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Long-Term Debt
 12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Long-Term Debt
Note 11.    Long-Term Debt
Long-term debt consists of the following:
                 
(
in millions
)
 
2019
 
  
2018
 
Revolving credit facility
  $
60.0
    $
126.0
 
Term loan
   
0.0
     
82.5
 
Deferred finance costs
   
(1.4
)    
(0.9
 )
                 
   
58.6
     
207.6
 
Less current portion
   
0.0
     
(21.4
 )
                 
  $
58.6
    $
186.2
 
                 
 
 
 
 
 
 
 
On September 26, 2019, Innospec and certain of its subsidiaries entered into a new agreement for a $250.0 million revolving credit facility until
September 25, 2023
with an option to request an extension to the facility for a further year. The facility also contains an accordion feature whereby the Company may elect to increase the total available borrowings by an aggregate amount of up to $125.0 million.
On September 30, 2019 the Company repaid its
pre-existing
term loan and revolving credit facility that had been amended and restated on December 14, 2016, and replaced this borrowing with the new credit facility.
As a result, refinancing costs of $1.5 million were capitalized which are being amortized over the expected life of the facility.
                 
(
in millions
)
 
2019
 
  
2018
 
Gross cost at January 1
  $
2.7
    $
2.7
 
Capitalized in the year
   
1.5
     
0.0
 
Written down in the year
   
(2.7
 )    
0.0
 
                 
   
1.5
     
2.7
 
                 
Accumulated amortization at January 1
  $
(1.8
 )   $
(1.1
 )
Amortization in the year
   
(1.0
)    
(0.7
 )
Amortization written down in the year
   
2.7
     
0.0
 
                 
  $
(0.1
)   $
(1.8
 )
                 
Net book value at December 31
  $
1.4
    $
0.9
 
                 
 
 
 
 
Amortization expense was $1.0 million, $0.7 million and $0.6 million in 2019, 2018 and 2017, respectively. The charge is included in interest expense, see Note 2 of the Notes to the Consolidated Financial Statements.
The obligations of the Company under the credit facility are secured obligations and guaranteed by certain subsidiaries of the Company. Amounts available under the revolving facility may be borrowed in U.S. dollars, Euros, British pounds and other freely convertible currencies.
The Company’s credit facility contain
s
restrictive clauses which may constrain our activities and limit our operational and financial flexibility. The facility obliges the lenders to comply with a request for utilization of finance unless there is an event of default outstanding. Events of default
 
are defined in the credit facility and include a material adverse change to our assets, operations or financial condition. The facility contains a number of restrictions that limit our ability,
amongst
other things, and subject to certain limited exceptions, to incur additional indebtedness, pledge our assets as security, guarantee obligations of third parties, make investments, undergo a merger or consolidation, dispose of assets, or materially change our line of business.
In addition, the credit facility contains terms which, if breached, would result in it becoming repayable on demand. It requires, among other matters, compliance with the following financial covenant ratios measured on a quarterly basis: (1) the ratio of net debt to EBITDA shall not be greater than 3.0:1 and (2) the ratio of EBITDA to net interest shall not be less than 4.0:1. Management has determined that the Company has not breached these covenants throughout the period to December 31, 2019 and does not expect to breach these covenants for the next 12 months. 
The weighted average rate of interest on borrowings was 3.14% at December 31, 2019 and 3.32% at December 31, 2018. Payments of interest on long-term debt were $4.8 million, $6.5 million and $7.2 million in 2019, 2018 and 2017, respectively.
The net cash outflows in respect of refinancing costs were $1.5 million, $0.0 million and $0.0 million in 2019, 2018 and 2017, respectively.