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Debt | 12 Months Ended
--- | ---
Dec. 31, 2019
Debt Disclosure [Abstract] |
Debt | 11. Debt Outstanding debt as of December 31, 2019 and 2018 is summarized as follows:
|  | 2019 |  |  | 2018 |
Senior secured asset based revolving credit facility |  | $ | — |  |  | $ | — |
Senior secured second lien notes due 2021 |  |  | — |  |  |  | 254.2 |
Senior secured second lien notes due 2026 |  |  | 300.0 |  |  |  | — |
Other |  |  | 16.7 |  |  |  | 21.2 |
Deferred financing costs |  |  | (4.5 | ) |  |  | (2.3 | )
Total debt |  |  | 312.2 |  |  |  | 273.1 |
Short-term borrowings and current portion of long-term debt |  |  | (3.8 | ) |  |  | (6.4 | )
Long-term debt |  | $ | 308.4 |  |  | $ | 266.7 |
On March 25, 2019, the Company and certain of its subsidiaries entered into an indenture with U.S. Bank National Association as trustee and notes collateral agent, pursuant to which the Company issued $300.0 million aggregate principal amount of senior secured second lien notes due on April 1, 2026 with an annual coupon rate of 9.000%. Interest on the 2026 Notes is payable in cash semi-annual in arrears on April 1 and October 1 of each year. The 2026 Notes are fully and unconditionally guaranteed on a senior secured second lien basis, jointly and severally, by each of the Company’s existing and future domestic subsidiaries that is either a guarantor or a borrower under the ABL Revolving Credit Facility (as defined below) or that guarantees certain other debt of the Company or a guarantor. The 2026 Notes and the related guarantees are secured on a second-priority basis, subject to certain exceptions and permitted liens, by pledges of capital stock and other equity interests and other security interests in substantially all of the personal property and fee-owned real property of the Company and of the guarantors that secure obligations under the ABL Revolving Credit Facility. The 2026 Notes were sold pursuant to exemptions from registration under the Securities Act of 1933. Additionally, on March 25, 2019, the Company and certain subsidiaries of the Company (the “Loan Parties”) entered into a credit agreement (the “ABL Credit Agreement”) with JP Morgan Chase Bank, N.A. as administrative and collateral agent, and certain financial institutions party thereto as lenders, providing for a senior secured asset-based revolving credit facility (the “ABL Revolving Credit Facility”) of up to $275.0 million. The borrowing capacity under the ABL Revolving Credit Facility is based on the value of inventory, accounts receivable and fixed assets of the Loan Parties. The Loan Parties’ obligations under the ABL Revolving Credit Facility are secured on a first-priority bas is, subject to certain exceptions and permitted liens, by substantially all of the personal property and fee-owned real property of the Loan Parties. The liens securing the ABL Revolving Credit Facility are senior in priority to the second-priority liens securing the obligations under the 2026 Notes and the related guarantees. The ABL Revolving Credit Facility has a term of 5 years and includes a $75.0 million letter of credit sub-facility, $10.0 million of which is available to the Company’s German subsidiary that is a borrower under the ABL Revolving Credit Facility. Borrowings under the ABL Revolving Credit Facility bear interest at a variable rate using either the Alternative Base Rate or the Eurodollar and Overnight London Interbank Offer Rate (“LIBOR”). The variable interest rate is based upon the average quarterly availability as of the most recent determination date as follows:
Average quarterly availability | Alternative base rate spread |  | Eurodollar and overnight LIBOR spread |
≥ 50% of Aggregate Commitment | 0.25% |  | 1.25% |
< 50% of Aggregate Commitment | 0.50% |  | 1.50% |
The Company used the initial extension credit under the ABL Revolving Credit Facility, together with the net proceeds from the offering of the 2026 Notes, to (i) redeem all of the Company’s $260.0 million in outstanding 12.750% Senior Secured Second Lien Notes due 2021 (the “Prior 2021 Notes”); (ii) repay all obligations outstanding, and terminate all commitments, under (x) the Company’s previous $225.0 million ABL Revolving Credit Facility (“Prior ABL Facility”) and (y) $75.0 million AR Securitization Facility; and (iii) pay related fees and expenses, including $16.6 million of call premium on the Prior 2021 Notes, $5.0 million of closing costs and $4.6 million of accrued interest. During the year ended December 31, 2019, the Company recorded a $25.0 million charge in the Consolidated Statement of Operations associated with the Company’s refinancing of the ABL Revolving Credit Facility and 2026 Notes. The charge is composed of $16.6 million of call premium on the Prior 2021 Notes, $5.3 million of unamortized discount on the Prior 2021 Notes and $3.1 million of unamortized debt issuance costs. As of December 31, 2019, the Company had outstanding $16.7 million of other indebtedness that has a weighted-average interest rate of approximately 5.1%. This debt includes balances on local credit lines and other financing arrangements obligations. As of December 31, 2019, the Company did not have an outstanding balance on the ABL Revolving Credit Facility and no borrowings on the Prior ABL Facility as of December 31, 2018. During the year ended December 31, 2019, the highest daily borrowing under either ABL facility was $39.7 million and the average borrowing was $8.9 million, while the average annual interest rate was 4.15%. The interest rate of the ABL Revolving Credit Facility fluctuates based on excess availability. As of December 31, 2019, the spreads for Eurodollar and Overnight LIBOR and Alternative Base Rate borrowings were 1.25% and 0.25%, respectively, with excess availability of approximately $206.4 million, which represents revolver borrowing capacity of $210.4 million less U.S. letters of credit outstanding of $4.0 million. Both the ABL Revolving Credit Facility and 2026 Notes include customary covenants which include, without limitation, restrictions on, the Company’s ability and the ability of the Company’s restricted subsidiaries to incur, assume or guarantee additional debt or issue certain preferred shares, pay dividends on or make other distributions in respect of the Company’s capital stock or make other restricted payments, make certain investments, sell or transfer certain assets, create liens on certain assets to secure debt, consolidate, merge, sell, or otherwise dispose of all or substantially all of the Company’s assets, enter into certain transactions with affiliates and designate the Company’s subsidiaries as unrestricted. Both the ABL Revolving Credit Facility and the 2026 Notes also include customary events of default. Additionally, the ABL Revolving Credit Facility contains a covenant requiring the Company to maintain a minimum fixed charge coverage ratio under certain circumstances set forth in the ABL Credit Agreement. The aggregate scheduled future maturities of outstanding debt obligations as of December 31, 2019 is as follows:
Year |  |  |  |
2020 |  | $ | 3.8 |
2021 |  |  | 10.5 |
2022 |  |  | 1.7 |
2023 |  |  | — |
2024 |  |  | — |
Thereafter |  |  | 300.7 |
Total |  | $ | 316.7 |
| • | The table of scheduled maturities above does not agree to the Company’s total debt as of December 31, 2019 as shown on the Consolidated Balance Sheet due to $4.5 million of deferred financing costs.
As of December 31, 2019, the Company was in compliance with all affirmative and negative covenants in its debt instruments, inclusive of the financial covenants pertaining to the ABL Revolving Credit Facility and 2026 Notes. Based upon management’s current plans and outlook, the Company believes it will be able to comply with these covenants during the subsequent twelve months.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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