Long-Term Debt and Capital Leases

On March 1, 2013, the Company amended its $550.0 million credit facility to increase the borrowing capacity to $750.0 million, extend the maturity date from February 2016 to March 1, 2018. The other material terms of the credit facility, including covenants, remain unchanged. Excluding interest and fees, no payments are due under the credit facility until it matures. On October 22, 2012, Teledyne entered into $200.0 million of term loans that mature in October 2015. The proceeds were applied against the $550.0 million revolving credit facility. The credit agreements require the Company to comply with various financial and operating covenants, including maintaining certain consolidated leverage and interest coverage ratios. Borrowings under our credit facility and term loans are at variable rates which are, at our option, tied to a Eurocurrency rate equal to LIBOR (London Interbank Offered Rate) plus an applicable rate or a base rate as defined in our credit agreements. Eurocurrency rate loans may be denominated in U.S. dollars or an alternative currency as defined in the agreement. Eurocurrency or LIBOR based loans under the facility typically have terms of one, two, three or six months and the interest rate for each such loan is subject to change if the loan is continued or converted following the applicable maturity date. The Company has not drawn any loans with a term longer than three months under the credit facility. Base rate loans have interest rates that primarily fluctuate with changes in the prime rate. Interest rates are also subject to change based on our consolidated leverage ratio as defined in the credit agreement. The credit agreement also provides for facility fees that vary between 0.125% and 0.30% of the credit line, depending on our consolidated leverage ratio as calculated from time to time.

Available borrowing capacity under the $750.0 million credit facility, which is reduced by borrowings and certain outstanding letters of credit, was $516.5 million at March 31, 2013. The credit agreement requires the Company to comply with various financial and operating covenants and at March 31, 2013, the Company was in compliance with these covenants. Teledyne also has a $5.0 million uncommitted credit line which permits credit extensions up to $5.0 million plus an incremental $2.0 million solely for standby letters of credit. No amounts were outstanding under this credit line at March 31, 2013 or December 30, 2012. This credit line is utilized, as needed, for periodic cash needs. Teledyne estimates the fair value of its long-term debt based on debt of similar type, rating and maturity and at comparable interest rates. The estimated fair value of Teledyne’s long-term debt at March 31, 2013 and December 30, 2012, approximated the carrying value.

Long-term debt consisted of the following (in millions):



Balance at	March 31, 2013		December 30, 2012
4.04% Notes due September 2015	$	75.0	$	75.0
4.74% Notes due September 2017	100.0		100.0
5.30% Notes due September 2020	75.0		75.0
Term loans due October 2015, weighted average rate of 1.59%	200.0		200.0
Other debt at various rates due through 2018 (excluding the current portion)	13.8		14.3
$750.0 million revolving credit facility, weighted average rate of 2.34% at March 31, 2013 and 2.82% at December 30, 2012	219.4		79.1
Total long-term debt	$	683.2	$	543.4

As March 31, 2013 the Company has $13.2 million in capital leases, of which $1.4 million is current. At December 30, 2012 the Company had $14.3 million in capital leases, of which $1.5 million was current. At March 31, 2013, Teledyne had $14.6 million in outstanding letters of credit.