Debt

12 Months Ended

Dec. 31, 2020

DEBT

Debt consisted of the following at December 31:


	2020		2019
3.67% $50 million 10-year Senior Notes due December 17, 2022	$	50,000	$	50,000
4.10% $50 million 10-year Senior Notes due September 19, 2023	50,000		50,000
3.84% $125 million 10-year Senior Notes due September 19, 2024	125,000		125,000
4.24% $125 million 10-year Senior Notes due June 25, 2025	125,000		125,000
3.91% $75 million 10-year Senior Notes due June 25, 2029	75,000		75,000
3.19% $50 million 15-year Senior Notes due January 24, 2035	50,000		—
1.47% EUR 125 million 15-year Senior Notes due June 17, 2030	153,299		140,197
1.30% EUR 135 million 15-year Senior Notes due November 6, 2034	165,563		151,413
Senior Notes debt issuance costs, net	(2,760)		(2,259)
Total Senior Notes	791,102		714,351
$1.1 billion Credit Agreement, interest at LIBOR plus 87.5 basis points(1)	491,419		520,999
Other local arrangements	51,970		55,868
Total debt	1,334,491		1,291,218
Less: current portion	(50,317)		(55,868)
Total long-term debt	$	1,284,174	$	1,235,350

(1) See Note 6 and Note 7 for additional disclosures on the financial instruments associated with the Credit Agreement.

The Company’s weighted average interest rate was 2.9% and 3.3% for the years ended December 31, 2020 and 2019, respectively.

Senior Notes

The Senior Notes listed above are senior unsecured obligations of the Company and interest is payable semi-annually. The Company may at any time prepay the Senior Notes, in whole or in part, at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interests, and in some instances a “make whole” prepayment premium. The Euro Senior Notes, if prepaid, may also include a swap related currency loss. The Senior Notes each contain customary affirmative and negative covenants including, among others, limitations on the Company and its subsidiaries with respect to incurrence of liens and priority indebtedness, disposition of assets, mergers, and transactions with affiliates. The agreements also require the Company to maintain a consolidated interest coverage ratio of not less than 3.5 to 1.0 and a consolidated leverage ratio of not more than 3.5 to 1.0. The Senior Notes also contain customary events of default with customary grace periods, as applicable. The Company was in compliance with its covenants at December 31, 2020.

Total issuance costs of approximately $3.4 million have been incurred by the Company related to the Senior Notes mentioned above and are being amortized to interest expense over the various term.

The Company has designated the EUR 125 million 1.47% Euro Senior Notes and the EUR 135 million 1.30% Euro Senior Notes as a hedge of a portion of its net investment in a euro-denominated foreign subsidiary to reduce foreign currency risk associated with this net investment. Changes in the carrying value of this debt resulting from fluctuations in the euro to U.S. dollar exchange rate are recorded as foreign currency translation adjustments within other comprehensive income (loss). The Company recorded in other comprehensive income (loss) related to this net investment hedge an unrealized loss of $27.3 million for the year ended December 31, 2020 and an unrealized gain of $1.3 million and of $6.7

million for the years ended December 31, 2019 and 2018, respectively. The Company has a loss of $28.8 million recorded in accumulated other comprehensive income (loss) as of December 31, 2020.

In December 2020, the Company entered into an agreement to issue and sell EUR 125.0 million of 15-year 1.06% Euro Senior Notes ("1.06% Euro Senior Notes"). The terms of the Euro Senior Notes are consistent with the previous Euro Senior Notes as described above. The Company also entered into a forward contract to receive $152.1 million at the time of issuing the 1.06% Euro Senior Notes in March 2021. The proceeds will be used to repay outstanding amounts on the Company’s credit facility and fund operational expenses. The 1.06% Euro Senior Notes will be designated as a hedge of a portion of the Company’s net investment in a euro-denominated foreign subsidiary to reduce foreign currency risk associated with this net investment.

Credit Agreement

The Company has a $1.1 billion Credit Agreement (the “Credit Agreement”), which has $602.5 million of availability remaining as of December 31, 2020. The Credit Agreement is provided by a group of financial institutions and has a maturity date of June 15, 2023. It is a revolving credit facility and is not subject to any scheduled principal payments prior to maturity. The obligations under the Credit Agreement are unsecured.

Borrowings under the Credit Agreement bear interest at current market rates plus a margin based on the Company’s consolidated leverage ratio, which was set at LIBOR plus 87.5 basis points as of June 15, 2018. The Company must also pay facility fees that are tied to its leverage ratio. The Company is required to maintain a ratio of funded debt to consolidated EBITDA of 3.5 to 1.0 or less and an interest coverage ratio of 3.5 to 1.0 or greater. The Credit Agreement also places certain limitations on the Company, including limiting the ability to incur liens or indebtedness at a subsidiary level. In addition, the Credit Agreement has several events of default. The Company was in compliance with its covenants as of December 31, 2020. The Company capitalized $2.0 million in financing fees in other long-term assets during 2018 associated with the Credit Agreement which will be amortized to interest expense on a straight-line basis through 2023.

Other Local Arrangements

In April 2018, two of the Company’s non-U.S. pension plans issued loans totaling $39.6 million (Swiss franc 38 million) to a wholly owned subsidiary of the Company. The loans have the same terms and conditions which include an interest rate of Swiss franc LIBOR plus 87.5 basis points. The loans were renewed for one year in April 2020.