Credit Facilities and short-term borrowings

12 Months Ended

Sep. 30, 2011

Debt Disclosure

Credit Facilities and Short-term Borrowings

 

Note 12. Credit facilities and short-term borrowings

As of September 30, 2011, Woodward's short-term borrowings and availability under its various short-term credit facilities follows:

			Outstanding
	Total		letters of credit			Outstanding		Remaining
	availability		and guarantees			borrowings		availability
Revolving credit facility	$	225,000	$	(4,882	)	$	—	$	220,118
Foreign lines of credit and overdraft facilities		10,526		—			—		10,526
Foreign performance guarantee facilities		9,736		(2,730	)		—		7,006
Foreign pooling arrangement facility		5,279		—			—		5,279
	$	250,541	$	(7,612	)	$	—	$	242,929

Woodward has a $225,000 revolving credit facility related to unsecured financing arrangements with a syndicate of U.S. banks. The revolving credit facility agreement provides for an option to increase available borrowings to $350,000, subject to the lenders' participation, and has an expiration date of October 2012. The interest rate on borrowings under the revolving credit facility agreement varies with LIBOR, the federal funds rate, or the prime rate. The revolving credit facility agreement contains certain covenants customary with such agreements, which are generally consistent with the covenants applicable to Woodward's long-term debt agreements, and contains customary events of default including certain cross default provisions related to Woodward's other outstanding debt arrangements in excess of $15,000, the occurrence of which would permit the lenders to accelerate the amounts due thereunder. Management believes that Woodward was in compliance with all its debt covenants at September 30, 2011.

Woodward also has various foreign lines of credit and foreign overdraft facilities at various financial institutions, which are generally reviewed annually for renewal and are subject to the usual terms and conditions applied by the financial institutions. Pursuant to the terms of the related facility agreements, Woodward's foreign performance guarantee facilities are limited in use to providing performance guarantees to third parties. Pursuant to the terms of the related facility agreement, Woodward participates in a pooling arrangement whereby Woodward cash on deposit at certain foreign banks may serve as collateral for borrowings by other Woodward subsidiaries up to the total amounts deposited in the pool.

Short-term borrowings of $0 and $22,099 were outstanding as of September 30, 2011 and September 30, 2010, respectively