Debt

The following table summarizes our long-term debt obligations, net of unamortized debt issuance costs and current maturities, at December 31. The interest rates shown in parentheses are as of December 31, 2016.



($ in millions)	2016		2015
Euro note B, due February 27, 2016	$	—	$	66.8
Term loan, due January 1, 2018 (2.27%)	34.9		37.1
Note payable, due December 31, 2019	0.2		0.2
Credit Facility, due October 15, 2020 (1.00%)	26.4		27.1
Series A notes, due July 5, 2022 (3.67%)	42.0		42.0
Series B notes, due July 5, 2024 (3.82%)	53.0		53.0
Series C notes, due July 5, 2027 (4.02%)	73.0		73.0
	229.5		299.2
Less: unamortized debt issuance costs	0.9		1.0
Total debt	228.6		298.2
Less: current portion of long-term debt	2.4		69.3
Long-term debt	$	226.2	$	228.9

Euro-denominated Note

Our Euro note B of €61.1 million ($66.8 million at December 31, 2015) matured in February 2016.

Term Loan

In 2013, we entered into a $42.8 million fivefive-year term loan due January 2018 related to our corporate office and research building. Borrowings under the loan bear interest at a variable rate equal to the London Interbank Offered Rate (“LIBOR”) plus a margin of 1.50 percentage points. Please refer to Note 9, Derivative Financial Instruments, for a discussion of the interest-rate swap agreement associated with this loan. At December 31, 2016, $34.9 million was outstanding under this loan, of which $2.4 million was classified as current. As of December 31, 2016 and 2015, there were unamortized debt issuance costs remaining of $0.1 million and $0.1 million, respectively, which are being amortized as additional interest expense over the term of the loan.

Credit Facility

In October 2015, we entered into the Credit Facility, that replaced our prior revolving credit facility, which was scheduled to expire in April 2017. The Credit Facility, which expires in October 2020, contains a $300.0 million credit facility, which may be increased from time to time by up to $100.0 million in the aggregate, subject to the satisfaction of certain conditions and upon approval by the banks. Up to $30.0 million of the Credit Facility is available for swing-line loans and up to $30.0 million is available for the issuance of standby letters of credit. Borrowings under the Credit Facility bear interest at either the base rate or at the applicable LIBOR rate, plus a tiered margin based on the ratio of our total debt to modified earnings before interest, taxes, depreciation and amortization (“EBITDA”), ranging from 0 to 75 basis points for base rate loans and 100 to 175 basis points for LIBOR rate loans. Consistent with our previous revolving credit facility, the Credit Facility contains representations and covenants that require compliance with, among other restrictions, a maximum leverage ratio and a minimum interest coverage ratio. The Credit Facility also contains usual and customary default provisions, and limitations on liens securing indebtedness, asset sales, distributions and acquisitions. As of December 31, 2016 and 2015, total unamortized debt issuance costs of $1.3 million and $1.6 million, respectively, were recorded in other noncurrent assets and are being amortized as additional interest expense over the term of the Credit Facility. A portion of these costs relate to our prior credit facility.

At December 31, 2016, we had $26.4 million in outstanding long-term borrowings under the Credit Facility, of which $4.3 million was denominated in Yen and $22.1 million in Euro. These borrowings, together with outstanding letters of credit of $3.0 million, resulted in a borrowing capacity available under the Credit Facility of $270.6 million at December 31, 2016.

Private Placement

In 2012, we concluded a private placement issuance of $168.0 million in senior unsecured notes. The total amount of the private placement issuance was divided into three tranches - $42.0 million 3.67% Series A Notes due July 5, 2022, $53.0 million 3.82% Series B Notes due July 5, 2024, and $73.0 million 4.02% Series C Notes due July 5, 2027 (the “Notes”). The Notes rank pari passu with our other senior unsecured debt. The weighted average of the coupon interest rates on the Notes is 3.87%. Related interest-rate hedging and transaction costs incurred increased the annual effective rate of interest on the Notes to an estimated 4.16%. Please refer to Note 9, Derivative Financial Instruments, for additional discussion of the related interest rate hedge. As of December 31, 2016 and 2015, there were unamortized debt issuance costs remaining of $0.8 million and $0.9 million, respectively, which are being amortized as additional interest expense over the term of the Notes.

Covenants

Pursuant to the financial covenants in our debt agreements, we are required to maintain established interest coverage ratios and to not exceed established leverage ratios. In addition, the agreements contain other customary covenants, none of which we consider restrictive to our operations. At December 31, 2016, we were in compliance with all of our debt covenants, and we expect to continue to be in compliance with the terms of these agreements throughout 2017.

Interest costs incurred during 2016, 2015 and 2014 were $11.7 million, $15.6 million and $18.1 million, respectively. The aggregate annual maturities of long-term debt were as follows: 2017 - $2.4 million, 2018 - $32.6 million, 2019 - $0.1 million, 2020 - $26.4 million, none in 2021, and thereafter - $168.0 million.