SHORT-TERM BORROWINGS AND LONG-TERM DEBT



Debt Obligations	Interest Rate Range as of February 24, 2017	Fiscal Year Maturity Range	February 24, 2017		February 26, 2016
U.S. dollar obligations:
Senior notes (1)	6.375%	2021	$	248.8	$	248.2
Revolving credit facilities (2)(4)		2022	—		—
Notes payable (3)	2.0%	2024	48.0		50.1
Capitalized lease obligations			—		0.1
			296.8		298.4
Foreign currency obligations:
Revolving credit facilities (4)			—		—
Notes payable	6.0%- 9.0%		0.3		0.3
Capitalized lease obligations	1.4%	2020	0.3		0.4
Total short-term borrowings and long-term debt			297.4		299.1
Short-term borrowings and current portion of long-term debt (5)			2.8		2.5
Long-term debt			$	294.6	$	296.6

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(1)

We have $250 of unsecured unsubordinated senior notes, due in February 2021 (“2021 Notes”). The 2021 Notes were issued at 99.953% of par value. The bond discount of $0.1 and direct debt issuance costs of $3.0 were deferred and are being amortized over the life of the 2021 Notes. Although the coupon rate of the 2021 Notes is 6.375%, the effective interest rate is 6.6% after taking into account the impact of the direct debt issuance costs, a deferred loss on interest rate locks related to the debt issuance and the bond discount. The 2021 Notes rank equally with all of our other unsecured unsubordinated indebtedness, and they contain no financial covenants. We may redeem some or all of the 2021 Notes at any time. The redemption price would equal the greater of (1) the principal amount of the notes being redeemed; or (2) the present value of the remaining scheduled payments of principal and interest discounted to the redemption date on a semi-annual basis at the comparable U.S. Treasury rate plus 45 basis points; plus, in both cases, accrued and unpaid interest. If the notes are redeemed within 3 months of maturity, the redemption price would be equal to the principal amount of the notes being redeemed plus accrued and unpaid interest. Amortization expense related to the direct debt issuance costs and bond discount on the 2021 Notes was $0.3 in 2017, 2016 and 2015.

(2)

We have a $125 global committed five-year bank facility which was entered into in Q3 2017. This facility amended and restated the former facility which was scheduled to expire in Q1 2018. As of February 24, 2017 and February 26, 2016, there were no borrowings outstanding under the facilities, our availability was not limited, and we were in compliance with all covenants under the facilities. We have $5.0 in other revolving credit facilities, from which we had no borrowings outstanding as of February 24, 2017 and February 26, 2016.

In addition, we have revolving credit agreements of $35.2 which can be utilized to support bank guarantees, letters of credit, overdrafts and foreign exchange contracts. As of February 24, 2017, we had $12.3 in outstanding bank guarantees and standby letters of credit against these facilities. We had no draws against our standby letters of credit during 2017 or 2016.

(3)

We have a $48.0 note payable with an original amount of $50.0 at a floating interest rate based on 30-day LIBOR plus 1.20%. The loan has a term of seven years and requires fixed monthly principal payments of $0.2 on a 20-year amortization schedule with a $32 balloon payment due in 2024. The loan is secured by two corporate aircraft, contains no financial covenants and is not cross-defaulted to our other debt facilities.

(4)

We have unsecured uncommitted short-term credit facilities of up to $1.6 of U.S. dollar obligations and up to $18.7 of foreign currency obligations with various financial institutions available for working capital purposes as of February 24, 2017. Interest rates are variable and determined at the time of borrowing. These credit facilities have no stated expiration date but may be changed or canceled by the banks at any time. There were no borrowings on these facilities as of February 24, 2017 and February 26, 2016.


(5)	The weighted-average interest rate for short-term borrowings and the current portion of long-term debt was 1.8% as of February 24, 2017 and February 26, 2016.

The annual maturities of short-term borrowings and long-term debt for each of the following five years are as follows:



Year Ending in February	Amount
2018	$	2.8
2019	2.8
2020	2.7
2021	251.4
2022	2.6
Thereafter	35.1
	$	297.4

Global Credit Facility

Our $125 committed five-year unsecured revolving syndicated credit facility expires in 2022. At our option, and subject to certain conditions, we may increase the aggregate commitment under the New Facility by up to $75 by obtaining at least one commitment from one of the lenders. There are currently no borrowings outstanding under the facility.

We can use borrowings under the facility for general corporate purposes, including friendly acquisitions. Interest on borrowings is based on the rate, as selected by us, between the following two options:


•	the greatest of the prime rate, the Federal fund effective rate plus 0.5%, and the Eurocurrency rate for a one month interest period plus 1%, plus the applicable margin as set forth in the credit agreement; or


•	the Eurocurrency rate plus the applicable margin as set forth in the credit agreement.

The facility requires us to satisfy two financial covenants:

•

A maximum leverage ratio covenant, which is measured by the ratio of (x) indebtedness (as determined under the credit agreement) less unrestricted cash (as determined under the credit agreement) to (y) trailing four quarter Adjusted EBITDA (as determined under the credit agreement) and is required to be no greater than 3:1. (In the context of certain permitted acquisitions, we have a one-time ability, subject to certain conditions, to increase the maximum ratio to 3.25 to 1.0 for four consecutive quarters).


•	A minimum interest coverage ratio covenant, which is measured by the ratio of (y) trailing four quarter Adjusted EBITDA (as determined under the credit agreement) to (z) trailing four quarter interest expense and is required to be no less than 3.5:1.

The facility does not include any restrictions on cash dividend payments or share repurchases. As of February 24, 2017 and February 26, 2016, we were in compliance with all covenants under the current facility and our previous unsecured revolving syndicated credit facility, respectively.